MONACO FINANCE INC
8-K, 1998-06-08
AUTO DEALERS & GASOLINE STATIONS
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1

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549



                                   FORM 8-K


                                CURRENT REPORT

                        Pursuant to Section 13 or 15(d)
                    of the Securities Exchange Act of 1934



     Date  of  Report  (Date  of  Earliest  Event  Reported):    May  18, 1998


                             MONACO FINANCE, INC.
                             --------------------
              (Exact Name of Registrant as Specified in Charter)


Colorado                             0-18819                   84-1088131
- --------                             -------                   ----------
State or Other               (Commission File Number)            (I.R.S.
Jurisdiction                                                    Employer
of Incorporation or Organization)                          Identification No.)



                      370 Seventeenth Street, Suite 5060
                            Denver, Colorado 80202
                            ----------------------
                   (Address of Principal Executive Offices)


     Registrant's  Telephone  Number,  Including Area Code:     (303) 592-9411


                                      N/A
                                      ---
        (Former Name or  Former Address, if Changed Since Last Report)


Total  number  of  pages  is  2.

The  exhibit  index  appears  at  sequential  page  no.    N.A.


  1
<PAGE>


ITEM  5.  OTHER  EVENTS.

On  May  18, 1997, a class action lawsuit was filed against the Company in the
District Court of Dallas County, Texas (Dixson et al. v. Monaco Finance, Inc.,
No.  DV983914). The plaintiffs allege various violations of Texas consumer law
by  the  Company  with respect to certain installment contracts for the credit
purchase  of  motor  vehicles. The complaint seeks the recovery of unspecified
actual  and  statutory  damages  and  attorney's  fees.

At  this  early stage in the proceedings, it is impossible to express any view
of  the  probable outcome of this lawsuit. In any event, management intends to
cause  the  Company  to  vigorously  defend  the  allegations.


                                  SIGNATURES

Pursuant  to  the  requirements  of  the Securities Exchange Act of  1934, the
Registrant  has  duly  caused  this  report  to  be  signed  on  its behalf by
undersigned  thereunto  duly  authorized.


                                                        MONACO  FINANCE,  INC.

Date:          June  5,  1998                   By:     /s/ Irwin L. Sandler
               ----------------                         --------------------




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