Those that have been on the hunt for a new car in recent times will be well aware of how frustrating it can be. Regardless of the situation, over 94,000 buyers managed to take delivery of their new vehicle last month. But the May monthly car sales figures reflect supply shortages in the Australian new car market and no doubt to some extent the RBA rate rise impact on vehicle finance with figures down on the same month last year.
The FCAI releases monthly motor vehicle sales figures for new vehicles and the announcement is of interest to enthusiasts and can be a nudge in the right direction for buyers seeking car makers with stock. But monthly figures need to be reviewed with the same cautions as have been issued for some time – supply, supply, supply! The figures relate to the number of vehicles which were taken delivery of, not the number ordered.
The numbers may also reflect the impact of the May RBA interest rate rise as some buyers may be reconsidering their purchase decisions. For those in that position, we remind of two key points – the RBA has raised rates again in June and is expected to do so again this year and secondly, Jade Car Loans will always be seeking better interest rates across our vehicle finance portfolio.
So what makes and models topped the charts for May? We review the figures and the FCAI overview of the current motor vehicle sales scenario.
Demand Outstripping Supply
While 94,383 buyers took the keys to motor vehicles in May 2022, that number is 6.4% down on May 2021. A result that Tony Weber, Chief Executive of the FCAI sees as new vehicle demand continuing to outstrip the supply.
Mr Weber said that the global motor vehicle manufacturing industry is continuing to be hindered by the computer chip shortage and delays caused by shipping issues. Issues which are being experienced not just in Australia but on a global basis.
The FCAI reports that dealers report strong demand but sales on a monthly basis are dependent on arrivals. It does not expect the supply chain to be stabilised until the global issues resolve. The NT was the only state/territory to show an increase in vehicle sales compared with the same month in 2021. All others were down between 0.8% and 11.3%. Overall the month recorded a 6.4% drop over May 2021.
Leading Makes and Models
As usual, Toyota was the leading brand overall maker with the surprise to many being Kia and Hyundai taking second and third positions. In the ‘brand race’ for the year to date the leading 10 are Toyota, Mazda, Mitsubishi, Kia, Hyundai, Ford, MG Isuzu Ute, Subaru and Nissan.
We stress that the sales figures that form these rankings are for new vehicles actually delivered and with supply issues prevailing, should be considered in context.
The same should be done in regard to the top 10 selling vehicles for the month of May. It was Toyota dominating with HiLux in top spot followed by RAV4 then the Ford Ranger, Corolla, LandCruiser, Isuzu D-MAX, another Toyota the Prado, Triton, i30 and Mazda’s CX-5 rounding out the 10.
In category terms, all posted decreases for May 2022 compared with 2021 figures with large and medium SUVs showing some growth. Slow growth in the EV segment but better results for PHEVs.
May’s best seller in the EV category was the small Volvo SUV, the XC40, with new-comer to the Australian market, Polestar, in second place.
The demand is there but supply is limited. Plenty for prospective buyers to consider along with planning their finance.
RBA Rate Rises and Motor Vehicle Finance
For those planning to purchase their new car with finance, the announcement by the RBA in both May and June of significant rate rises will be of interest and add an element of urgency to the purchase. Lenders will respond to cash rate hikes by lifting lending rates across their markets and that does include new business car loans.
In the light of this unfolding scenario with the RBA alluding to further rises ahead, buyers will want to be paying more attention in sourcing their car finance. Sourcing the cheapest car loan business interest rates can be mean a significant variation in monthly repayments. To see exactly what a small percentage rate difference means to car loan repayments, use our car finance calculators.
Motor vehicle finance interest rates do vary across the range of business finance products and for Secured Car Loan for private buyers. Rates can also vary across the lending sector. Which is one of the key benefits of utilising our broker services – to cover off quickly and efficiently on a vast selection of both banks and non-bank lenders.
Buyers can be well-prepared to place an order for a new vehicle quickly by speaking to our consultants about pre-approved finance.
Contact Jade Car Loans 1300 000 003 to discuss better interest rate motor vehicle finance
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.