The final quarter of the financial year is traditionally a busy time for business owners to upgrade with new assets. 2023 is even more significant as it is the last opportunity for businesses to take advantage of the general tax deductions available with temporary full expensing.
This trend to buy appears to be clearly evident, with April recording a sales record for commercial vehicle sales in the fourth month of the year. According to the latest sales data from the Truck Industry Council (TIC) on the best-selling trucks, 3613 vehicles of 3500+kg GVM were sold this past month.
While down on the March figures, the result is the best April on record. The CEO of the TIC, Tony McMullan, is reported as saying that the April figures were encouraging after the strong results in the first quarter of the year. Mr McMullan said seeing the light and heavy segments continuing strong results was especially good.
On a year-to-date (YTD) basis, the figures are well over previous years. Compared to the end of April 2022, the 2023 YTD figures are 16.1% up, with all segments performing well.
While the monthly truck sales figures are great for the industry to reflect on, they can also present purchase insights for operators planning vehicle acquisitions with the top-selling brands announced.
The message for operators planning best-selling truck purchases is to quickly secure cheaper rates through Jade Truck Loans ahead of any more rate rises.
Cheaper finance combined with the tax benefits of different truck finance products may represent savings and less pressure on cash flow required in the years ahead with slower economic growth and high inflation.
Truck Sector Sales Results
In the heavy-duty category, sales were again up for April – 25% over the April 2022 results. This result establishes a new record for April in the category. The previous record was set in 2018. On a YTD basis, sales are currently 21.3% more than at the end of April last year.
The medium duty category is almost on par with the 2022 sales result. Just a 0.3% fall in sales compared with the same month in 2022. On a YTD basis, this category is around the same as for 2022 – just 1.3% lower.
The light duty category is performing extremely well for the year. Another record was set for April 2023, 3.1% up on the same month last year. This outdoes any other April result on record. The category is up 16% on a YTD basis from last year.
Best Performing Brands
For operators selecting their new vehicle, the interest in the sales results may lay in which were the best-selling brands. Isuzu was the best-selling brand overall for April, taking 28.6% of the market and up on April 2022. Hino came in next, finishing the month with a 14.5% market share. Fuso took the third position with an 11% share of the market.
In the heavy-duty segment, Volvo sold the most units for April, just ahead of Kenworth. The monthly sales also pushed Volvo ahead of Kenworth on a YTD sales basis. Isuzu came in third in this market segment, ahead of Scania, Mack and Mercedes.
Isuzu continued its dominance in the medium segment, with nearly 50% of sales for April 2023. Hino came in second, and Fuso next. Then came Mercedes, Hyundai, Iveco, SEA, Man and Volvo. Apart from the top 3, the others posted very small unit sales.
Isuzu continued that dominance, leading the light segment with 42% of the market share. Quite a way ahead of Hino, then Fuso and Iveco. The rest of the best-selling truck brands in this segment with very small figures were Renault, Mercedes, Hyundai, VW, Renault and Ford.
Truck Finance Options for New Acquisitions
With such impressive sales figures, reports expect slower sales for the second half of the calendar year, as temporary full expensing is no longer an option. Such a forecast may present interesting considerations for buyers. Could there be good discounts and offers later in the year as dealers look to shift stock in a slower market?
Weighing up this possibility would be the truck finance interest rates outlook and the tax benefits to be realised by purchasing before 30 June 2023.
Temporary full expensing has been extremely popular. Chattel Mortgage truck finance is the most compatible loan type for accelerated asset depreciation measures. But this finance product and realising tax deductions through depreciation do not suit all business operations.
Tax benefits are available with all commercial loan products. We can assist buyers purchasing best-selling trucks with the full range of options at better rates – Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase, including for those requiring low-doc and no-doc loans.
Contact Jade Truck Loans at 1300 000 003 for better rates on truck finance for best-selling trucks.
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