U.S. Auto Sales Surge 32.3% in Mid-September : Record Pace Fueled by Cut-Rate Financing

Sales of American-built cars continued at a record pace in mid-September, the auto makers reported Tuesday, as cut-rate financing offers fueled a 32.3% increase over 1984 levels.

The seven U.S. auto companies said they sold 289,582 cars in the Sept. 11-20 period this year, compared to 218,847 in the same period last year. The daily selling rate of 32,175 cars shattered the previous record for the period of 25,120 set in 1979.

The recent sales surge began in late August when most of the companies began offering low-interest loans on leftover 1985 model-year cars. Sales of U.S.-built cars were up 70.9% in the Aug. 20-31 period and 56.9% in the first 10 days of September.

However, auto analysts expect sales to drop off sharply when the programs expire in early October. And, although they estimate that domestic dealers currently have 630,000 of the 1985 models still in stock, analysts noted that many popular models may be sold out, which should cause the sales pace to begin slowing in the final 10-day period this month.

“Car sales are subsiding from unbelievable to merely fantastic,” said David Healy, an auto analyst with the investment firm of Drexel Burnham Lambert in New York. But, he added, “the industry may be running out of the inventory that supported these huge sales levels. And the coach turns into a pumpkin in October as the (programs) expire.”

The anticipated sales slump once 1986 models arrive in October has prompted analysts to predict that the domestic auto makers may be forced to begin a new round of incentive programs this fall.

General Motors, Ford, Chrysler and Volkswagen of America all posted sales gains exceeding 30% for the period. American Motors and American Honda said their sales were down 15.5% and 27.6%, respectively.

Nissan, which began building cars in this country last March, sold 2,377 domestically produced Sentras in mid-September.

Auto Sales

Sept. 11-20 Sept. 11-20 % 10-Day 1985 1984 change GM 157,219 119,008 +32.1 Ford 83,451 60,625 +37.6 Chrysler 36,874 28,253 +30.5 AMC * 3,625 4,290 -15.5 VW U.S. 2,567 1,881 +36.5 Honda U.S. 3,469 4,790 -27.6 Nissan U.S. 2,337 -- -- TOTAL 289,582 218,847 +32.3

*Estimate