U.S. car sales increase 13 percent in Sept.

DETROIT - Americans found plenty of reasons to buy new cars in September, making auto sales a bright spot in the economy for yet another month.

Total U.S. sales rose 13 percent from a year earlier to nearly 1.2 million. If they stayed at that pace, they'd reach 14.9 million this year. Sales rose for most carmakers, led by big gains at Toyota, Honda, and Volkswagen.

Low interest rates, aging vehicles that need to be replaced, and appealing new models are the main drivers of this year's consistently strong sales, said Jessica Caldwell, an analyst for the Edmunds.com automotive website.

"That's a good combination to get people shopping again," Caldwell said. "That's really what sells cars."

Record-high gas prices shifted buyers away from trucks toward smaller cars. Sales rose 40 percent or more for the Chevrolet Cruze, Ford Focus, Toyota Corolla, and other compacts. Gas prices have jumped 14 percent since July 1, and hit $3.79 per gallon at the end of September, a record for that time of year.

Uncertainty about the economy is keeping sales from rising even faster. Some Americans are holding back on major purchases until they see how the budget battle shakes out in Washington, whether Europe can fix its economy, and who wins the presidential election, said Jeff Schuster, senior vice president of forecasting for LMC Automotive, an industry-consulting firm.

But car companies remain optimistic about the rest of this year and the first part of next year.

"The positives outweigh the negatives," said Kurt McNeil, vice president of U.S. sales for GM. "We see continued slow, gradual growth for the entire industry and for us."

Toyota Motor Corp.'s sales rose 41.5 percent and Honda Motor Co.'s were up 31 percent in September, compared with a year earlier, when their inventories were hurt by the Japanese earthquake. Honda said sales of the Civic and Accord sedans rose 57 percent. Nissan Motor Co., which recovered more quickly from the earthquake, said its sales fell 1 percent, partly because the company has only just begun shipping its new Altima sedan to dealers.

Subaru of America Inc. reported a 32 percent increase in September vehicle sales. The Cherry Hill-based marketer and distributor of the Outback and other vehicles said that it sold 27,683 units in September compared with 20,934 units in September 2011. Subaru, a subsidiary of Japan's Fuji Heavy Industries Ltd., said it is on track to sell more than 300,000 vehicles annually for the first time.

Detroit didn't fare as well. Chrysler Group reported a 12 percent increase, thanks to strong sales of the Dodge Avenger and the new Dodge Dart small car. But Ford Motor Co. sales dipped by 0.1 percent to 174,976 vehicles, while General Motors Co. could muster only a 1.5 percent increase to an industry-leading 210,245 vehicles last month.

Volkswagen AG said sales rose 34 percent, thanks to a big increase in incentives.