While the wait for some new cars has blown out to nearly a year, in May there were nearly 95,000 motor vehicle buyers who did accept the keys to their new cars. The number is down significantly on the same period last year as it reflects the shortages in supply in the new vehicle market but still a sign that it is possible to secure a new car loan. The May car sales figures have been released by the FCAI, so it’s that time to check out the top sellers and consider the car finance options to secure a new vehicle.
The monthly new vehicles sales announcements are always of interest to motoring fans and for buyers, can be an indication of which manufacturers have stock. In this current restricted supply environment however, it may indicate which brands received shipments that month.
The downturn in sales may be attributed to the supply situation and may also be a result of the RBA making the decision to hike interest rates at the start of May. A decision which may have had certain buyers rethink or pause their purchasing plans. The rate hikes by the RBA will be reflected in motor vehicle lending markets but cheap car finance may still be secured by using professional finance services. Jade Finance provides specialist motor vehicle finance services with a focus on better interest rates to ensure our customers achieve that all-important cheapest rate loan.
FCAI May Sales Announcement
The FCAI announced the May new vehicle sales figures with Chief Executive Tony Weber saying that demand continues to outstrip supply of new vehicles in the Australian market. He noted that the global car manufacturing sector continues to be hampered by the shortage of semi-conductors while dealers in Australia and worldwide are hampered by that as well as major issues around shipping.
Dealers are reportedly experiencing a strong orders and demand however the actual sales made and keys handed over for new vehicles is completely dependent upon what stock arrives in the dealerships.
The FCAI has an expectation that supply chains will not stabilise until such time as the issues on a global basis are resolved. Across the individual states and territories it was only the Northern Territory that posted a sales increase for May 2022 compared with May 2021. All the other regions posted a drop compared to the 2021 period, some up to 11%. In overall terms the May 2022 sales were down 6.4% compared with the same month in 2021.
Makers and Models Posting Top Sales
Continuing its dominance, Toyota once again posted the highest number of sales for a brand. But for the first time Kia slotted into second place with fellow Korean manufacturer Hyundai in third for the month. On a year-to-date basis for sales figures the top 10 brands are: Toyota followed by Mazda, then Mitsubishi and Kia, then comes Hyundai and Ford, with MG still in the top 10 with Isuzu Utes and Subaru and Nissan rounding it out.
These are results for the delivery of new models as second-hand sales are not included in these figures.
When it comes to the top ten models, not surprisingly we see Toyota’s HiLux still out in front and the brand’s RAV4 in second followed by Ford’s Ranger. The tussle between HiLux and Ranger continues. Next in the ten comes more Toyotas – Corolla and LandCruiser, then another trusty work vehicle in the Isuzu D-Max before the next Toyota, the Prado with Triton from Mitsubishi, Hyundai’s i30 and the Mazda CX5 completing the ten.
For EVs, the best-selling vehicle for May was the Volvo CX40, a small SUV. Polestar models came in second. Some commentators point out the unavailability of Tesla 3 models in the May as significant. While the medium and large SUVs posted a level of sales growth, in general terms, all categories were down for the month.
Car Finance Options
While perusing the best-selling vehicles many buyers will also be keeping a keen eye on their car finance options. With additional rate hikes ahead alluded to by the RBA Board, a sense of urgency may creep into car buying. Buyers requiring finance will be wanting to secure finance as well as a vehicle prior to further rises.
Lenders will of course pass on RBA increases according to their own individual corporate guidelines. Specialists in the field will want to remain competitive of course, so spending the time or at least taking a moment to consider the options may deliver a cheaper car loan outcome.
Every small percentage reduction in the interest rate can mean quite a meaningful difference in both the overall cost of the car loan and the individual monthly repayments. Refer to our interest rate charts to see exactly what it may mean for the price of the vehicle you are considering.
As well as the actual rate another important feature of the loan offer to pay attention to is whether the interest rate is a fixed rate or a variable interest rate. At Jade Finance we secure fixed rate loans for Secured Car Loans for our private car customers and on our business finance products – Chattel Mortgage, Lease and Commercial Hire Purchase.
A fixed rate on these loans ensures the rate will remain unchanged despite changes made by the RBA. A variable rate loan can change in line with decisions by the RBA.
Rates on motor vehicle finance vary across the sector, from lender to lender, and by lenders at different points of time. Which is why our vast accreditations with multiple banks and lenders is so important. This provides you, through us, access to knowing quickly which particular lender is offering the best rate at the time you are making your application. This capability can deliver time-savings as well as a cheaper car loan. No need for our customers to spend their time requesting quotes from multiple lenders to find the cheapest. One call, one quote request and the cheapest car loan offer is delivered.
Contact Jade Finance 1300 000 008 to discuss cheap car finance on a top selling motor vehicle
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