P.M. BRIEFING : Buyers Rush to Luxury Car Lots to Avoid New Taxes Due Jan. 1

DETROIT —  European luxury cars are selling fast as buyers hurry to avoid new taxes that take effect New Year’s Day.

A surge in late November and early December sales was reported by a dealers association and sales managers.

“All companies are reporting an increase in sales,” said Bob Howe, who follows European luxury cars for the National Automobile Dealers Assn. in McLean, Va. “In many cases their business has doubled from what it was a year ago. They are very mindful of the fact that there will be a fall in business in January.”

On Jan. 1, consumers paying more than $30,000 for a new car will be assessed a 10% tax on the amount over $30,000, and the gas guzzler tax on the least fuel-efficient vehicles will double.

The new taxes could add thousands of dollars to a flashy car’s price.

At Estate Motors Ltd. in Birmingham, Mich., sales manager David Trudeau said Mercedes sales in early December jumped about 30% from the previous month.

Throughout the year, sales of expensive European imported cars, including Mercedes-Benz, BMW and Porsche, had been running behind last year’s pace.