Interest rates, prices hold key to further gains in auto sales

During the first 4 months of 1984, new car sales averaged 10.5 million units at an annual rate. This is the fastest pace recorded since 1979. Recouping a portion of deferred purchases could contribute to above-average strength in new car sales for several years. The increase in sales from 8 million...

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Bibliographic Details
Published in:Business America 1984-06, Vol.7 (12), p.26
Main Authors: Ortner, Robert, McKittrick, George
Format: Article
Language:English
Subjects:
Automobile industry
Automobile sales
Automobiles
Interest rates
Prices
Prices and rates
Sales
Statistics
Trends
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Summary:During the first 4 months of 1984, new car sales averaged 10.5 million units at an annual rate. This is the fastest pace recorded since 1979. Recouping a portion of deferred purchases could contribute to above-average strength in new car sales for several years. The increase in sales from 8 million units in 1982 to 9.2 million units in 1983 was concentrated in luxury and intermediate domestic models. This increase was related partly to the dramatic rebound in financial markets and a vigorous recovery in business purchases of automobiles. This year seems to be following the usual pattern of moderating during the second year of expansion. The pickup in the first quarter reflects some stockpiling. Higher finance rates and high new car prices, the key determinants of average monthly payments, are 2 potential problems that could prevent the automobile industry from enjoying continued high levels of sales and employment.
ISSN:0190-6275