Expect a boom time for buying cars in June as car sales drop for a fifth month in a row

STAND by for a car buying bonanza. Unprecedented discounts on new cars are on their way due to a massive oversupply. Here’s when to buy.

2014 Toyota Corolla ZR sedan

STAND by for unprecedented discounts on new cars as dealers become increasingly desperate to make up for five months in a row of sales decline.

After last year’s highest high the industry had forecast another record year for new car deliveries and ordered stock in huge numbers — but there is now an oversupply of vehicles.

Despite record low interest rates, sales of new cars were down again in May, after hitting a two-year low in April and starting 2014 behind last year’s sales rate.

“It’s going to be crazy this month,” said one dealer principal with 25 years in the trade.

“None of us (dealers) can figure out why the market is so tough. Interest rates are low, prices are sharp, but everyone is sitting on a stack of cars.”

The dealer said it was “too early to say” if the Federal Budget may have dented consumer confidence when it comes to cars, as it was delivered halfway through the month of May.

“But if June is down we will know if something is seriously wrong, it’s our biggest month of the year,” he said.

TWO-YEAR LOW: Car sales down in April

LOOKING UP: Holden Commodore sales surge

Still popular ... the Toyota Corolla was Australia’s top-selling car for the third month in a row, but the Mazda 3 still leads year-to-date.

Official figures released today show 94,562 new vehicles were delivered in May, a decline of 2.3 per cent compared with the same month last year.

The decline wasn’t as great as April, which was down by 5.2 per cent, the biggest drop in two years.

However, the May result means sales in the first five months of this year when combined are down by 2.9 per cent compared to the same period last year (to 441,642 for deliveries from January to May).

Seven of the top 10 brands posted sales declines in May; only Holden (up 8.7 per cent), Hyundai (up 4.7 per cent) and Nissan (up 6.0 per cent) bucked the trend.

The Toyota Corolla was Australia’s top-selling car for the third month in a row, but the Mazda 3 still leads year-to-date after an unusually high number of demonstrator vehicles were registered in January and February.

Toyota, market leader for the past 11 years, again outsold its nearest rival Holden by almost two-to-one.

But, as a further sign of our changing tastes in cars, there was a scuffle for third place between Hyundai and Mazda.

Australians love luxury ... sales of Audi were up 15.8 per cent in May.

Hyundai (up 4.7 per cent) overtook Mazda (down 4.7 per cent) for the second month in a row after beating Mazda four times in 2013.

In other upsets, the Volkswagen Golf made it into the Top 10 (for only the 12th time ever) although its tally of 2301 deliveries was still nowhere near its highest high of 3337 in October 2011.

Australians are continuing to buy luxury cars in record numbers, with sales of Audi (up 15.8 per cent), BMW (up 8.2 per cent) and Mercedes-Benz (up 11.6 per cent) all posting increases.

Mercedes-Benz outsold its rivals in the five leading passenger-car categories while BMW led two of the three luxury SUV categories.

The figures from the Federal Chamber of Automotive Industries show private buyers are driving the overall market.

Sales to fleets and businesses are down by 9.1 per cent compared with the same month last year, whereas sales to private buyers are up by 1.6 per cent and continue to represent just over half of all new-car sales.

Top 10 brands in May 2014

Toyota: 17,246 — down 9.2 per cent

Holden: 9012 — up 8.7 per cent

Hyundai: 8403 — up 4.7 per cent

Mazda: 7751 — down 4.7 per cent

Ford: 6950 — down 4.0 per cent

Nissan: 6281 — up 6.0 per cent

Mitsubishi: 5780 — down 17.6 per cent

Volkswagen: 4918 — down 11.0 per cent

Subaru: 3202 — down 8.6 per cent

Honda: 2539 — down 30.0 per cent

Top 10 cars in May 2014

Toyota Corolla: 3871 — up 6.3 per cent

Toyota HiLux: 3313 — down 9.5 per cent

Mazda3: 3291 — up 7.8 per cent

Holden Commodore: 2648 — up 60.8 per cent

Hyundai i30: 2553 — up 1.6 per cent

Ford Ranger: 2317 — up 35 per cent

Volkswagen Golf: 2301 — up 46.1 per cent

Mitsubishi Triton: 2254 — down 13.5 per cent

Mazda CX-5: 1715 — down 3.5 per cent

Holden Colorado: 1689 — up 22.5 per cent

Nissan Navara: 1541 up 2.5 per cent

2014: The year so far

January: down 3.7 per cent

February: down 3.8 per cent

March: down 0.1 per cent

April: down 5.2 per cent

May: down 2.3 per cent

Source: Federal Chamber of Automotive Industries, all percentages compared to the same month the previous year.

This reporter is on Twitter: @JoshuaDowling