Small cars lead March auto sales surge
Chrysler Group’s Fiat saw sales of its small 500 model, above, increase in March. (Feb. 29, 2012) Credit: AP
Appealing small cars, low interest rates, truck deals and unseasonably warm weather helped the auto industry achieve its best monthly performance in almost four years in March.
Americans who couldn't bear a new payment and kept driving their old car during the economic downturn are back on the market. With gas above $4 in some parts of the United States, including Long Island, buyers are leaning toward new fuel-efficient compacts like the Chevrolet Cruze and subcompacts such as the Honda Fit to save money. Also, incentives on trucks are good enough to lure buyers who want something bigger. Ford said sales of the F-series pickup, the nation's bestselling vehicle, rose 9 percent.
Industry analysts say March sales could run at an annual rate of 14.1 million to 14.5 million vehicles, continuing the strong performance in January and February.
March saw more growth in loans to subprime buyers, which boosted sales. Jefferies analyst Peter Nesvold wrote in a note to investors that non-prime buyers, or those with less than stellar credit, are coming back into the market after being shut out for several years due to lack of loan availability.
Industry incentives averaged $2,440 per vehicle.
Volkswagen AG said its sales rose 35 percent to 36,588, the company's best March sales since 1973.
