U.S. Oct. auto sales likely to be lower as incentives fall, J.D. Power says

WESTLAKE VILLAGE, Calif. October 21, 2002 Bloomberg News reported that this month's U.S. sales of cars and light trucks may fall 25 percent from the year-earlier record level because consumers are waiting for better cash and loan discounts, J.D. Powers & Associates said.

The sales may drop to 1.3 million vehicles from 1.73 million in October 2001, the first full month that U.S.-based automakers offered no-interest loans to revive demand after the Sept. 11 terrorist attacks, the market-research company said. Incentives now average about $1,200 a vehicle, down from $1,480 in late August, J.D. Power spokesman John Tews said.

"As automakers start to sweeten the deal again with greater use of incentives, we believe many consumers are holding out to see how far the automakers will go," said Walter McManus, J.D. Power's executive director of global forecasting, in a statement. The company collects data from about 5,900 U.S. auto dealers.

J.D. Power estimated the annual sales rate in October will be 15.5 million vehicles, down from a 21.4-million rate in the year-earlier month. Sales in the first two weeks were down about 30 percent, the market researcher said. General Motors Corp. expanded no-interest loans to include no money down and no payments for 90 days, after demand slid in this month's first week.

U.S. sales rose 2.9 percent in September, led by Ford Motor Co. and DaimlerChrysler AG's Chrysler. September's annual sales pace was 16.3 million cars and light trucks, up from 16.2 million a year earlier, according to Autodata Corp.

J.D. Power kept its full-year forecast at 16.8 million vehicles. The company is based in Westlake Village, California.