It’s official: new car sales in Australia have dropped over Winter 2014. The total market has declined by 5.5%, a surprising figure considering new cars have never been more affordable, with prices the lowest they’ve been for 20 years.

So what’s behind the figures and what does it mean to you, if you’re considering buying a new car? First, industry experts are pointing to uncertainty over the Federal Budget and anxieties about unemployment, which has risen over the past 12 months.

Speaking to Joshua Dowling at news.com.au, Richard Dudley, CEO of the Australian Motor Industry Federation, said that budget delays would be enough to slow car sales down. “The delays are sending mixed signals to consumers who are unsure what extra costs are around the corner.”

Another view is that the attractive market conditions of the past 5 years, with low interest rates and competitive pricing, led to a glut in sales, meaning the sales figures had nowhere else to go but down. Some insiders say that new vehicle stock levels have been kept lower, meaning there haven’t been as many attractive deals designed to clear the warehouses at the end of financial year.

This is unlikely to have been of great concern to Hyundai, who increased sales in August against the same month in 2013, leaping ahead of Mazda to land in third place, just behind Holden.

Market leader Toyota retained its position as number one in the sales figures, with an August total almost double that of Holden’s. Toyota’s best selling vehicles, the Corolla and the HiLux, were also Australia’s best-selling vehicles, followed by the Mazda 3, Holden Commodore and Hyundai i30.

What should new car buyers make of all this? Despite talk of consumer confidence being low, the Australian market is still very much alive and kicking. Interest rates remain low and with competition strong between the manufacturers, it’s an excellent time for negotiating good prices.