WHOLESALE USED CAR PRICES DECLINE

Wholesale used vehicle prices fell both on a month-over-month and on a year-over-year basis in February. According to ADESA Analytical Services' monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in February averaged $9,752 - down 2.8 percent compared to January and 1.2 percent relative to February 2012. The only segment that showed a month-over-month average price increase in February was mini SUVs, which showed a 1.9 percent rise. Prices for used vehicles remarketed by manufacturers were up 1 percent year-over-year, tapering considerably from last month's 7.7 percent year-over-year increase. Despite this tapering, off-rental program units are continuing to show price strength. Prices for fleet-lease consignors were flat year-over-year. Prices fell 4.5 percent year-over-year for dealer consignors. Prices were down on a month-over-mon

#CONSUMER REPORTS BEST CARS

Consumer Reports Names Best Used Cars To help consumers choose the best used car for their money, Consumer Reports compiled a Best & Worst Used Cars list for model years 2003 through 2012. The full report, available in Consumer Reports April Annual Auto issue and at ConsumerReports.org, highlights the best sedans, SUVs, and small cars available in four price ranges: from $10,000 or less up to $25,000. Each performed well in CR's testing when new and had above-average reliability for the model years shown, based on CR's annual auto survey. And all models came standard with electronic stability control (ESC), a proven lifesaver during the years indicated. The Consumer Reports worst used cars list includes 2003 to 2012 models that have had multiple years of much-worse-than-average overall reliability, according to CR's survey. Among the 20 models that made that list are the BMW 7 Series, the Ford Explorer (V6, 4WD), the Kia Sorento (V6), and the Mini Cooper S. Most gas/electric hybrid cars have shown superior reliability in the past decade. However, the Honda Civic Hybrid is an exception, according to the survey. Almost one in five owners of the 2009 model year Civic Hybrid needed a replacement battery in CR's 12-month survey period.

CARS.COM PICKS BEST CAR DEALS

Latest News Cars.com Picks Best Deals The editors at Cars.com released their list of the top 10 used cars that they recommend for shoppers who are looking to spend around $10,000. With a used car market that is sparser than it used to be, car shoppers have fewer options to choose from and higher prices to pay, but the Cars.com experts compiled a list of 10 used cars that will help shoppers get the best bang for their buck around the $10,000 price point. The winners are: 2006 Ford Escape: Ford's first generation crossover had trucklike styling but car-based underpinnings, and the driving experience combined handling and ride comfort in a way that few car-based crossovers of the Escape's era could match. 2008 Ford Focus: The Focus comes with safety features like side curtain airbags and also Bluetooth and USB/iPod integration, both of which were ahead of the curve for 2008. The car's sharp handling distinguished it from many rivals, and it is offered in three body styles, providing an option for everyone. 2007 Ford Freestyle: This budget-friendly family hauler comes with spacious seating for seven passengers and impressive cargo storage. 2007 Ford Fusion: A responsive V-6 engine option and decent handling chops distinguished Ford's midsize family car. So did trunk room, which remains spacious even by today's family-car standards. 2006 Honda Civic: The beloved eighth-generation Civic's interior quality, fuel efficiency and overall drivability impressed so much that they still hold up today. 2006 Hyundai Azera: A full-size sedan with upscale features, a big engine and big backseats, the Azera packed a comfortable ride. 2007 Hyundai Sonata: A family sedan with roominess, safety features and value in spades. Years later, a used example should still suit any shopper well. Find one with the optional 3.3-liter V-6 for muscular passing power. 2008 Kia Optima: A cousin to the Hyundai Sonata, the Optima had more available luxury features, but less styling and a smaller engine. However, a roomy backseat and decent standard safety features round out a car whose successor won Cars.com's Best of 2011 award. 2008 Nissan Versa: Nissan's unexpectedly roomy Versa slips into tight city parking spots like any proper subcompact should. A responsive transmission combined with a larger four-cylinder engine than most competitors' provides impressive power. 2007 Scion tC: Strengths included rich cabin materials and a responsive four-cylinder engine; look for the available five-speed manual for more fun.

#CAR DEALER CHARGED WITH MONEY LAUNDERING

Latest News Dealer Faces Money Laundering Charges A used-car dealer and two associates in Commerce City, Colo., were arrested for structuring and money laundering. Raul Mendoza, Julia Castillo-Caraveo, and Isidro Noe Mendoza-Ortiz, were named in a sealed indictment returned by a federal grand jury in Denver on Feb. 14. In addition to the three arrests, agents and officers executed search warrants at a residence and an automobile business. Twenty automobiles with clear titles from the car dealership were seized. According to the indictment, beginning in February 2008, and continuing through May 2012, Mendoza and Mendoza-Ortiz conspired with each other and others to structure currency by depositing transactions with the intent to evade the reporting requirements as required by law. Daily cash receipts from Mendozas business, Chopeque Auto Sales, were received at the business and structured into separate accounts at various banks to avoid the $10,000 reporting requirements. From Feb. 26, 2008 through May 29, 2012, they structured over 700 deposits totaling $4,543,714. As part of the conspiracy, on June 4, 2011, Mendoza, Mendoza-Ortiz and Caraveo knowingly caused Chopeque Auto Sales to fail to file a Federal IRS Form 8300, a report required by law for all currency transactions over $10,000 received by a business. Particularly, they sold a 2004 Dodge Ram 1500 in exchange for $10,500 that was represented by undercover law enforcement officers to be the proceeds of drug distribution and that they did so with the intent to conceal the nature of the proceeds of the specified unlawful activity and to avoid IRS Form 8300 reporting requirements. On March 8, 2012, Mendoza and Castillo-Caraveo followed a similar pattern and sold a 2008 Chevrolet Silverado 1500 in exchange for $20,900 that was represented by undercover law enforcement officers to be the proceeds of a drug distribution; no IRS From 8300 was filed. The defendants conspired to conceal the nature and source of the specified unlawful activity and attempted to launder drug proceeds. Particularly, Chopeque Auto Sales sold automobiles to known drug dealers, prepared false documents relating to the sale of vehicles to known drug dealers, structured currency deposits to conceal the source, falsely claimed to law enforcement authorities to be a valid lien holder of a seized vehicle in order to assist a known drug dealer in seeking the return of the vehicle. Upon conviction of the offenses above, they shall forfeit to the United States all of the defendants right, title and interest in all property, real or personal, involved in such offenses, or all proceeds traceable to such property, for which the defendants are joint and severally liable. Mendoza was charged with three counts of structuring and three counts of money laundering. Castillo-Caraveo was charged with two counts of structuring and three counts of money laundering. Mendoza-Ortiz was charged with two counts of structuring and two counts of money laundering. If convicted, each count of structuring and money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $500,000. Agents with IRS-Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA) and the Department of Homeland Security investigated this case. In addition, Denver Police Department, Commerce City Police Department, Thornton Police Department, and Department of Revenue Auto Industry Division assisted in the execution of the warrants.

BUY HERE PAY HERE LOTS STRONGEST MARKET SHARE

Latest News New Car Terms Hit High; Used Terms Flat Experian Automotive released data that shows average loan terms for a new vehicle in the fourth quarter jumped to an all-time high of 65 months, up from 63 months in the fourth quarter of 2011. Terms for used vehicles stayed flat at 60 months. Findings from the State of the Automotive Finance Market analysis showed that the average interest rate for new and used vehicle loans dropped in Q4, and average monthly payments dropped versus the same time period in Q4 2011. The report also showed that the average loan amount for a new vehicle was $26,691 in the fourth quarter, up $272 from the fourth quarter of 2011, while the average used vehicle loan was $17,629, up $239. However, while consumers are taking out larger loans, lower interest rates and longer loan terms for new vehicles helped bring down the average monthly payments. For example, the average interest rate for a new vehicle loan in the fourth quarter dropped to 4.36 percent, from 4.52 percent in the fourth quarter of 2011, while the average interest rate for a used vehicle loan dropped to 8.48 percent, from 8.67 percent. Additionally, the average monthly payment for a new vehicle dropped to $460 from $468. More consumers also were able to obtain financing in Q4, as average credit scores for both new and used vehicles dropped. For new vehicle loans, the average consumer credit score was 755 in Q4 2012, down six points from Q4 2011. For used vehicle loans, the average consumer credit score dropped to 665 in Q4 2012, down five points from Q4 2011. Automotive loans for new vehicles with terms from 73 to 84 months increased by 19.4 percent over the fourth quarter of 2011. New lease share of new financing increased to 24.79 percent, up from 10.45 percent. The total subprime market for all new vehicle financing increased to 24.77 percent, up from 22.59 percent in the fourth quarter of 2011. The total subprime market for all used vehicle financing increased to 55.4 percent, up from 53.58 percent. Buy-here, pay-here organizations and credit unions showed the strongest market share growth of 4.3 percent and 3.9 percent for overall automotive loans. Banks have the highest market share of automotive loans at 41.2 percent.

MISSOURI CAR DEALER CHARGED WITH ODOMETER FRAUD

Missouri Attorney General Chris Koster filed criminal charges against a Springfield, Mo., used-car dealer for misrepresenting the true mileage on two cars he sold. Ashley Bolton, owner of Excel Auto Group, is charged with two counts of unlawful merchandising practices. The attorney general's investigation revealed that in 2011 and 2012, Bolton misrepresented the actual mileage of vehicles being offered for sale by Excel to two different consumers. In one count, Bolton allegedly bought a car with more than 180,000 miles then sold it representing it had 99,000 miles. In the other case, Bolton bought a car with nearly 220,000 miles then sold it less than a month later with 119,000 miles. Unlawful merchandising practices is punishable by two to four years in the Department of Corrections, or up to one year in the county jail, and/or a fine up to $5,000 or double the amount the defendant gained from the commission of the crime, not to exceed $20,000. The Missouri Department of Revenue and the Office of Odometer Fraud in the National Highway Transportation Safety Administration assisted Koster's office in the investigation. The AG's office also has a civil investigation against Bolton underway. The charges were announced during National Consumer Protection Week. Attorney General Chris Koster announced he was using the event to highlight areas where consumers can protect themselves from scammers, including when purchasing a used car.

CARS SALES SAME EVEN WITH HIGHER TAXES

f Higher Taxes For the month of February, Kelley Blue Book analysts predict new-car sales will maintain the momentum from the previous three months and hit 15.3 million seasonally adjusted annual rate (SAAR), a 3.4 percent year-over-year improvement. Although shy of the 14 percent annual gain the auto industry experienced in January, sales should improve more than 7 percent after adjusting for the number of selling days in February. Although sales are expected to maintain a steady course in February, a recent Quick Poll among in-market car shoppers conducted by Kelley Blue Book 's Market Intelligence team indicates that many consumers are beginning to feel the pinch from the expiration of the 2 percent payroll tax holiday. When asked if the increase in the payroll tax impacted their new-vehicle purchase timeline, 39 percent indicated that they planned to delay their purchase, 28 percent responded that the tax increase didn't impact their purchase timeline in any way, while 27 percent indicated that they would reduce the amount they planned to spend on their next purchase.