Exhibit (a)(1)(iii) - Form of
                                                   Notice of Guaranteed Delivery


                          NOTICE OF GUARANTEED DELIVERY
                                       FOR
                        TENDER OF SHARES OF COMMON STOCK
                                       OF
                            UGLY DUCKLING CORPORATION


                    (NOT TO BE USED FOR SIGNATURE GUARANTEES)

        This Notice of Guaranteed Delivery, or one substantially in the form
hereof, must be used to accept the Offer (as defined below) (i) if certificates
("Share Certificates") evidencing shares of Common Stock, $.001 par value per
share (the "Shares"), of Ugly Duckling Corporation, a Delaware corporation, are
not immediately available, (ii) if Share Certificates and all other required
documents cannot be delivered to Computershare Trust Company, Inc. as Depositary
(the "Depositary"), prior to the Expiration Date (as defined in the Introduction
to the Offer to Purchase (as defined below)) or (iii) if the procedure for
delivery by book-entry transfer cannot be completed on a timely basis.

                        The Depositary for the Offer is:

                        Computershare Trust Company, Inc.

            By First Class Mail, Overnight Courier or Hand Delivery:

                        COMPUTERSHARE TRUST COMPANY, INC.
                      12039 WEST ALAMEDA PARKWAY, SUITE Z-2
                               LAKEWOOD, CO 80228

                   Facsimile (for eligible institutions only):
                                 (303) 984-2444

        Confirm Facsimile by telephone (for eligible institutions only):
                                 (303) 984-4043

              For information please contact Shannon Lundquist at:
                                 (303) 984-4043

        Delivery of this Notice of Guaranteed Delivery to an address other than
as set forth above, or transmission of instructions via facsimile transmission
other than as set forth above, will not constitute a valid delivery.

        THIS FORM IS NOT TO BE USED TO GUARANTEE SIGNATURES. IF A SIGNATURE ON A
LETTER OF TRANSMITTAL IS REQUIRED TO BE GUARANTEED BY AN "ELIGIBLE INSTITUTION"
UNDER THE INSTRUCTIONS THERETO, SUCH SIGNATURE GUARANTEE MUST APPEAR IN THE
APPLICABLE SPACE PROVIDED IN THE SIGNATURE BOX ON THE LETTER OF TRANSMITTAL.

Ladies and Gentlemen:

        The undersigned hereby tenders to Ernest C. Garcia II, upon the terms
and subject to the conditions set forth in the Offer to Purchase, dated November
26, 2001 (the "Offer to Purchase"), and the related Letter of Transmittal
(which, as amended or supplemented from time to time, together constitute the
"Offer"), receipt of each of which is hereby acknowledged, the number of Shares
specified below pursuant to the guaranteed delivery procedures described in the
Offer to Purchase under the heading "THE OFFER - Procedures for Tendering
Shares".

Number of Shares Tendered: ____________________________________________________

Certificate Nos. (if available): ______________________________________

[__] Check box if Shares will be delivered by book-entry transfer to The
Depository Trust Company.

Account No.: ____________________________________________







(Signature(s) of Holder(s))


Dated: ____________________________, 200__


Name(s) of Holder(s): _________________________________________
                             (Please Type or Print)


Address: _________________________________________



Zip Code: __________________


Area Code and Telephone No.: ___________________________________

                                    GUARANTEE

                    (NOT TO BE USED FOR SIGNATURE GUARANTEE)

        The undersigned, a bank, broker, dealer, credit union, savings
association, firm or other entity which is a member in good standing of the
Securities Transfer Agent Medallion Program, the New York


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Stock Exchange Medallion Signature Guarantee Program or the Stock Exchange
Medallion Program, (a) represents that the above named person(s) "own(s)" the
Shares tendered hereby within the meaning of Rule 14e-4 under the Securities
Exchange Act of 1934, as amended ("Rule 14e-4"), (b) represents that such tender
of Shares complies with Rule 14e-4, and (c) guarantees to deliver to the
Depositary, at its addresses set forth above, Share Certificates evidencing the
Shares tendered hereby, in proper form for transfer, or confirmation of
book-entry transfer of such Shares, into the Depositary's account at The
Depository Trust Company, in each case with delivery of a Letter of Transmittal
(or facsimile thereof) properly completed and duly executed, with any required
signature guarantees or an "agent's message" (as defined in the Offer to
Purchase) in the case of book-entry delivery, and any other required documents,
all within 3 Nasdaq National Market trading days after the date hereof.

   The Eligible Institution that completes this form must communicate the
guarantee to the Depositary and must deliver the Letter of Transmittal and the
certificates for Shares to the Depositary within the time period shown herein.
Failure to do so could result in a financial loss to such Eligible Institution.


Name of Firm: __________________________________________________

Authorized Signature: __________________________________________

Name: ______________________________________
            (Please Type or Print)

Title: ____________________________________________

Address: __________________________________________

Zip Code: _________________________________________

Area Code and Telephone Number: ________________________________


Dated: ____________________________, 200__

DO NOT SEND SHARE CERTIFICATES WITH THIS NOTICE OF GUARANTEED DELIVERY. SHARE
CERTIFICATES SHOULD BE SENT TO THE DEPOSITARY WITH YOUR LETTER OF TRANSMITTAL.


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