DETROIT — From mini cars to monster pickups, sales of vehicles charged higher in June and eased concerns that Americans would be turned off by slower hiring and other scary headlines.
Automakers reported big gains over June of last year,
and Colorado car dealerships were no exception.
Richard Roth, sales manager at O’Meara Ford in Northglenn, said his sales were up 30 percent compared with the same month last year.
The national sales results allayed fears that growth would stall after a strong start to 2012. Earlier this spring, sales were on track to reach 14.5 million this year, boosted by mild weather and the post-earthquake return of Japanese inventories. But the pace dropped to 13.8 million in May, as the stock market plunged and hiring slowed. In June, there was more bad news about jobs growth, and consumer confidence fell for the fourth straight month.
But buyers didn’t go away — falling gas prices, cheaper loans and new models drew them out. By early Tuesday, The Detroit Three all said they expected the sales rate to top 14 million.
Roth said carmakers like Ford are offering better financing, and some of his customers are feeling better about the economy. “Ford has become more flexible with its financing for certain people with credit challenges,” he said.
The average interest rate on a 60-month new-car loan is now 4.5 percent, down from 6.98 percent two years ago, according to .
“Credit is much more readily available for consumers,”said Tim Jackson, president of Colorado Automobiles Dealers Association. “It’s become competititve, where lenders are going after consumers.”
Paul Suss, general manager of Suss Buick-GMC in Aurora, said his new and used sales rose about 23 percent, bolstered by a good mix of SUVs and truck and small compact cars.
Ford’s overall sales rose 7 percent. The Escape small SUV posted its best month ever — rising 28 percent — after a new version of the popular vehicle arrived at dealerships.
Toyota Motor Corp. said its sales were up 60 percent for the month, but that wasn’t surprising. Last year, Toyota and Honda had little inventory because of the earthquake in Japan.
