SecProbe.io

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                         [HOMETOWN AUTO RETAILERS LOGO]

           1309 South Main Street, Waterbury, CT 06706 (203) 756-1300

                                 August 5, 2005

Mr. George F. Ohsiek, Jr. Branch Chief
The United States Securities and Exchange Commission
100 F Street, N.E.
Washington, DC  20549

Re:   Hometown Auto Retailers, Inc.
      Form - 10-K for Fiscal Year ended December 31, 2004, Filed March 24, 2005
      Form - 10-Q for Fiscal Quarter ended March 31, 2005
      File No. 0-24669

Dear Mr. Ohsiek:

      Below is the footnote disclosure I am proposing to include in Hometown's
June 30, 2005 Form 10-Q. Please review.

RECLASSIFICATION OF BALANCE SHEETS AND STATEMENTS OF CASH FLOWS

      Hometown is in the process of restating its Balance  Sheets and Statements
of Cash Flows in its  filings on its  December  31, 2004 Form 10-K and March 31,
2005 Form 10-Q.  The balance sheets  reclassification  is to breakdown its floor
plan notes payable into trade and non-trade components,  where it had previously
been shown as a single line item,  which is consistent  with industry  practice.
The Statements of Cash Flows reclassification is to show the non-trade component
of floor plan notes payable as a financing activity,  where it had been shown as
an  operating  activity.  This  reclassification  is being  done to comply  with
guidance under SFAS 95, "Statement of Cash Flows", which states that payments to
suppliers should be classified as an operating  activity.  The floor plan lender
is FMCC, an affiliate of Ford, Lincoln and Mercury;  therefore; floor plan notes
payable  amounts due from purchases of inventory from Ford,  Lincoln and Mercury
are classified as floor plan - trade and the related borrowings and payments are
to be  classified  as  operating  activities  in the  Statements  of Cash Flows.
Amounts due from inventory purchases from all other manufacturers are classified
as floor plan notes payable - non-trade and the related  borrowings and payments
are to be classified as financing activities in the Statements of Cash Flows.

                                                 Very truly yours,

                                                 /s/ Charles F. Schwartz
                                                 -----------------------
                                                 Charles F. Schwartz
                                                 Chief Financial Officer
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