USED CAR SALES 2.9 MILLION

Latest News Monthly Used Car Sales Near 3 Million Used-car sales should come in at around 2.9 million this month. TrueCar estimates used-car sales at 2,891,896 for March. The ratio of new to used is estimated to be 1:2. New light vehicle sales in the U.S. (including fleet) are expected to be 1,466,956 units, up 23.1 percent from February and up 4.5 percent from March 2012 (on an unadjusted basis). The March forecast translates into a seasonally adjusted annualized rate of 15.42 million new car sales, up from 15.4 million in February and up from 14.1 million in March 2012. Retail sales are up 20.2 percent from February and up 4.2 percent compared to March 2012. Fleet and rental sales are expected to make up 21 percent of total industry sales in March. The industry average incentive spending per unit will be approximately $2,523 in March, which represents a decrease of 1.7 percent from March 2012 and is unchanged from February 2013.

JEEP CHEROKEE SUV AND ALFA ROMERO PAIR

CHRYSLER GROUP LLC is preparing to roll out a new midsize Jeep that illustrates the promise and challenges that Chief Executive Sergio Marchionne is confronting as he merges Chrysler and Fiat SpA into a single, global auto maker. The 2014 Jeep Cherokee, which debuts soon at the New York Auto Show, is based on a design first developmented for Fiat's Alfa Romeo-a sharing intended to spare Chrysler hundreds of millions of dollars in engineering costs and shorten the time it takes to get new vehicles to market. The new Cherokee is expected to be Chrysler's most important all-new vehicle debut this year and its best hope for attracting new buyers and keeping Chrysler's U. S. sales on the rise. Last year, Chrysler sold 1.65 million vehicles in the U. S. , up 21% over the previous year.

#THE FORD THAT FLOPPED

The biggest flop in Ford Motor history was the Edsel. Over 6,000 names were considered for this car before finally Henry Ford's son's name was picked. The Edsel styling element, a vertical grill with large oval in the center, to a horse collar or a car sucking a lemon. Early models had reliability issues. Perhaps more important, a recession dumped demand for midsize cars. Just over 100,000 Edsels sold over three model years. The Edsel was oversold by Ford as the revolutionary of the future. Ford announced it was suspending production in 1959 amid losses estimated at $250 million. Time magazine said "Edsel was the wrong car for the wrong marked at the wrong time." Legions of Edsel collectors stayed loyal and starting in the late 1960's formed clubs that now have members in 48 states, Canada and elsewhere. Restored Edsels can go for upward of $100,000.

BANKS OVER CHARGING ON AUTO LOANS#

A federal consumer regulator said on Thurday some lenders offering auto loans through auto dealerships charge minorities above-market interest rates and warned it will crack down on a profit-sharing practice between used and new car dealers and lending institutions. The Consumer Financial Protection Bureau said a typical industry practice known as "dealer markup" -in which a lender and a used or new car dealer split interest-rate charges-may lead to lending discrimination. The regulator said its examination of the industry shows that some lender policies allows markups of interest rates, and that there is a "significant risk" the practice results in higher interest rates for African-Americans and Hispanics. The CFPB would force auto lenders "into changing the way they compensate dealers without any indication that the bureau has examined the effect this change could have on the cost of credit for consumers". The agency failed to address the fact that high risk consumers often times require the cardealer to in fact co-sign or guarantee the loan. If the consumer defaults on the car loan the dealership is liable to the bank to payoff the debt. The credit scoring system often requires consumers with marginal or low credit scores to pay higher interest rates.

#NEW CAR SALES STRONG

Latest News New Vehicle Sales Remain Strong New-vehicle sales remain strong in March, as both the light-vehicle retail selling rate and the total light-vehicle rate are consistent with February's performance at 12.1 million units and 15.3 million units, respectively, according to a monthly sales forecast developed by J.D. Power and Associates' Power Information Network (PIN) and LMC Automotive. March new-vehicle retail sales are expected to come in at 1,158,000 vehicles, which represent a seasonally adjusted annualized rate (SAAR) of 12.1 million units, with volume approaching a double-digit increase from March 2012. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles. The average new-vehicle customer-facing retail transaction price ($28,504) is up 3 percent from March 2012. Leases account for 23.1 percent of new-vehicle retail transactions in March 2013, up from 20.0 percent in March 2012. In addition, the percentage of retail sales with a 72-month or longer loan is at record levels, reaching 32.1 percent in March 2013, an increase from 30.4 percent in March 2012. Total light-vehicle sales in March 2013 are projected to reach 1,465,100 units, an 8 percent increase from March 2012, with a selling rate that is consistent with the expected performance for the year. Fleet share is expected to hold at 21 percent. The outlook for 2013 remains strong and consistent with the pace expected to be set in the first quarter. LMC Automotive is holding its 2013 U.S. forecast for total light-vehicle sales at 15.3 million units and the retail light-vehicle forecast at 12.5 million units.