Income Tax Refunds Drive April Auto Sales Up 13%

DETROIT —  The U.S. auto industry started the spring selling season with its traditional bang, as consumers spent their income tax refunds on cars and pushed April sales up 13% over last year, auto makers said Wednesday.

Chrysler Corp.’s April sales were up 33% compared with the year-ago period. General Motors Corp., overcoming the effects of a strike in March, said its sales rose 8.1 %.

Consumers apparently shrugged off any worry about higher gas prices, snapping up record numbers of minivans, pickup trucks and sport-utility vehicles, which get about 20 miles per gallon. (The average car gets 28.) Ford Motor Co. will report its results Friday.

Big rebates and low-interest loans again played a role in the sales gains.

“That’s still very positive news, and suggests the industry is on track for a very strong spring and summer performance,” said Christopher Cedergren, senior vice president of AutoPacific Inc.

Auto buying got a boost from consumers with bank accounts swollen by income tax refunds and refinanced home mortgages, which saw a spurt at the end of last year, analysts said.

“People are getting back their IRS refunds, and a lot of the money is being channeled into down payments for cars,” Cedergren said.

So far this year, the average refund is 11% higher, at $1,234.

Chrysler has been surprised by the robust market. The Auburn Hills, Mich.-based auto maker’s sales of minivans, trucks and sport-utility vehicles rose 40% over April 1995 to 148,768. Last year’s April sales were depressed by very low production of old-model minivans.

Chrysler’s rebates and low-interest loans helped boost car sales 22% to 81,701.

GM’s results were affected by the 18-day strike in March, which cut supplies of some vehicles. The auto maker has been having trouble filling orders for its GMC Suburban and Tahoe sport-utilities. “They’re all sold before we get them, and people are waiting in line,” said Mike Belnap, sales manager at Coury Buick-GMC in Mesa, Ariz.

GM sold 168,394 trucks, minivans and sport-utility vehicles in April, up 2.4% from April last year. Car sales, which were weak in some spots, rose 12% to 268,647.

Japanese makers reported mixed results. Honda Motor Corp. said its U.S. sales jumped almost 21%; Nissan Motor Corp.’s were up 16%. However, Toyota Motor Corp. said sales fell 0.2%.