Ford and Chrysler have best US sales month since 2007 in March

Ford had its best sales month since May 2007, with tax refunds, low interest rates and and an improving job market helping to boost sales. Photograph: Steven Senne/AP


Ford and Chrysler enjoyed their best US sales month in nearly six years in March, as buyers armed with tax refund cheques were lured by flashy new vehicles and low interest rates.

Ford's sales were up 6% and Chrysler's 5% compared with last March, in further proof of the sustained recovery of the world's second largest car market. It was the best month for Ford since May 2007 and the best for Chrysler since December 2007, before the credit crunch entered its most damaging phase.

Industry analysts estimate that total March sales reached nearly 1.5m cars and trucks

Alec Gutierrez, a senior market analyst with Kelley Blue Book, said the improving job market was boosting sales. The number of Americans seeking unemployment benefits fell to a five-year low during March. Low interest rates are also making new car purchases more appealing, Gutierrez said. The average rate for a 60-month new car loan is now 4.1%, down from 4.5% percent last year.

Gutierrez added that tax refunds may have also spurred purchases. The average federal tax refund this year is nearly $3,000 (£1,985), or enough to cover the downpayment on a three-year lease of a BMW 3-Series saloon. The UK market has also had a strong start to the year, with new car registrations - a proxy for sales - rising 7.9% in February.