
                             STEEL PARTNERS, L.L.C.
                       750 LEXINGTON AVENUE - 27TH FLOOR
                            NEW YORK, NEW YORK 10022
                                    --------
                               TEL (212) 446-5216
                               FAX (212) 446-5290


                                    EXHIBIT F

By Facsimile & Mail
-------------------

May 6, 1997

Mr. Andrew Gaspar
Chairman of the Board
AutoInfo, Inc.
1600 Route 208
Fair Lawn, NJ 07410

Dear Andy:

As you know, Steel Partners II, L.P.,  ("Steel"),  owns approximately 14% of the
outstanding common stock of AutoInfo,  Inc.  ("AutoInfo" or "the Company"),  and
has been the largest  shareholder of AutoInfo for several years now. During this
time,  we have  patiently  waited  for your  new  business  strategy  to come to
fruition and to create value for all the shareholders.  Unfortunately, the stock
price has fallen to less than $1.50 per share,  (40% of its stock price 4 months
ago,  and close to its all time low) or  approximately  5 times 1997  forecasted
earnings.

At the time of your decision to enter into the sub-par auto finance business, we
strongly voiced our concerns to you regarding the prospects of this industry. In
particular,  we felt that the business was labor and capital  intensive and that
it required  extensive  industry  expertise to succeed.  In December  1995,  the
Company,  against  our better  judgment,  proceeded  with an  investment  in the
industry with its acquisition of Falk Finance Company.

Within  13  months  of  making  this   investment,   AutoInfo  has  written  off
approximately  $20  million of  goodwill  and  additional  credit  losses on its
portfolio  of  automobile  receivables  associated  with the  Falk  acquisition.
Additionally,   the  Company   recorded  a  provision   for  credit   losses  of
approximately  $5 million in  connection  with the Falk  Purchase  Agreement and
terminated its relationship with Falk Finance.

At $1.38 per share, we believe the Company is  significantly  undervalued and is
trading at a  substantial  discount  to its  intrinsic  value.  We reached  this
conclusion  after  spending  considerable  time  discussing  the  industry  with
research  analysts and  conducting a thorough  analysis of the earnings power of
the business, comparable company market multiples, and general market multiples.

In light of AutoInfo's  problematic foray into the sub-par auto finance business
and the recent  unpopularity  and general unrest within the industry  (caused in
part by the high profile problems at Mercury Finance and others),  it seems that
the surest way to enhance AutoInfo's shareholder value in a timely fashion would
be
<PAGE>
Mr. Andrew Gaspar
AutoInfo, Inc.
Page Two



to hire an investment  banking firm to seek a merger  partner and/or sale of the
Company to the highest  bidder  rather than  continuing  to pursue a  disastrous
business strategy. With AutoInfo's attractive balance sheet and loan receivables
portfolio,  we believe the shareholders  would realize a price well in excess of
the current market value.

Due to AutoInfo's disappointing stock price, we feel it is the board's fiduciary
duty and obligation to its  shareholders  to  immediately  embark on a clear-cut
mission and strategy to increase the Company's value.

We would like to get  together  with you and the board to  discuss  any ideas or
alternative  strategies  you may have for  increasing  the overall  value of the
Company and to explain our reasons for believing  that the Company should be put
up for sale or  merged as a means to  achieving  the  highest  value for all the
shareholders of AutoInfo.

I look forward to hearing from you shortly.

Respectfully,

/s/ Warren Lichtenstein
-----------------------
Warren Lichtenstein
