Buy New for ’22: Reasons to Upgrade Trucks Now

As 2021 draws to a close, accompanied by collective sighs of relief from various segments of society and the business realm, it's natural to yearn for a respite from the arduous work and business-related stresses that the pandemic has ushered in over the past 18 months or so.

However, the dawn of 2022 is merely weeks away, and astute business operators are keenly attuned to the promise of forthcoming opportunities. If weariness has set in, both within yourself and your truck, contemplating an upgrade now – before you take a well-deserved break to toast to the festive season – could prove to be a shrewd decision. Jade Truck Loans proffers a plethora of compelling reasons to consider upgrading your truck at this juncture, in anticipation of the imminent arrival of 2022. Opting to take this step now, rather than deferring it until the following year, can yield a host of advantageous outcomes.

General Interest Rate Scenario

Procuring a new truck typically entails securing financing. As such, the landscape of truck lending, particularly the prevailing interest rate trajectory, warrants dedicated consideration. Recent discourse surrounding interest rates has introduced an element of uncertainty, casting a degree of ambiguity upon what had initially appeared to be a rather straightforward interest rate forecast laid forth by the Reserve Bank of Australia (RBA).

In view of this, it becomes imperative to closely scrutinize the evolving dynamics within the realm of interest rates and their potential implications for the truck lending domain. This entails remaining attuned to the fluctuations and nuances that may shape the lending landscape in the upcoming period.

The RBA has repeatedly stated that it did not expect economic conditions to be right for a rate rise until around 2024. But inflation has started to edge up and this is a key factor for the RBA decisions. So is wages growth, which has also recorded a recent increase. Whether either of these rates will be sustained remains to be seen. The growth in wages may be due to businesses needing to offer higher wages to attract workers as job vacancies are high in some sectors and applicants light on the ground.

Although the Reserve Bank of Australia (RBA) is presently adhering to its projected timeline of a potential rise in official cash rates around 2024, or conceivably even in 2023, a few banks have already instituted increments in their fixed rates for residential mortgages. It's vital to acknowledge that the home loan domain diverges from the landscape of truck loan lending. However, the rationale underpinning these rate adjustments can, to some extent, be attributed to escalated lending expenses.

Certain lenders are contending with elevated costs associated with procuring the requisite funds for lending endeavours. This financial outlay constitutes a substantial overhead and is factored into the diverse rates that lenders extend across their distinct finance markets. While the official cash rate commands significant influence, it is by no means the solitary determinant governing lending rates. Lenders sourcing funds from global markets are subject to the economic circumstances prevailing in nations beyond Australia's purview. These prevailing conditions invariably impinge upon the rates that lenders themselves incur, a repercussion that subsequently reverberates in the rates they levy upon borrowers.

Truck Loan Interest Rates

Jade Truck Loans has a business model based on cheap truck loan interest rates and with a vast selection of banks and non-bank lenders in our lending panel, we do have significant potential to source the cheapest rate to suit each customer.

Currently our rates are reflecting the historic lows prevalent across the lending sector. Our truck loan divisions are secured at fixed interest rates. So businesses that secure a cheap interest rate truck loan now, at that fixed rate, will be safeguarded against move in general lending rates over the term of their loan, which could be up to 7 years.

Business Opportunities

Upgrading now can put your business in a better position to capture the many opportunities on offer in your sector.

  • Infrastructure projects pledged and started as part of economic recovery packages are ongoing. For example, road upgrades in remote areas is a key focus of the Federal Government, construction has started on the terminal building at Sydney’s new airport site offering thousands of job and work opps over coming years and the Federal Government’s new climate change policy offers opportunities in hydrogen and other energy areas.
  • Pressure on global supply chains may play into the hands of local producers and manufacturers to fill the gap. Creating work for transport operators in particular.
  • The construction sector is showing good signs of bouncing back.
  • The Federal Election is looming, due in the early part of 2022 with pollies already in ‘election mode’. For business, that means pledges and policy statements aplenty from all parties that carry the potential for new work.
  • Many contracts for truck owner-operators are awarded through a tender or bidding process. Tenderers will want to be well-equipped to be in a position to quote a competitive price but also be ready to deliver. New trucks can be an important consideration in the process, both from both sides – the company issuing the contracts and those submitting tenders.

Stock Shortages

The pervasive disruptions within global supply chains, notably concerning computer chips and presently shipping logistics, are imparting substantial reverberations upon the availability of goods across diverse sectors. Projections indicate that these challenges will continue to cast a shadow over the supply of components and certain imported vehicles well into the year 2022. Certain analysts are even predicting that the specter of supply constraints for novel merchandise and vehicles may extend until the culmination of 2022.

This predicament underscores a compelling rationale to expedite truck acquisitions by capitalizing on existing stock, rather than grappling with the potential predicament of navigating an extended period with an aging vehicle. Such a scenario could potentially encroach upon productivity and profitability, warranting a judicious decision to secure truck purchases promptly to circumvent potential operational impediments.

Boost Productivity

Truck manufacturers remain steadfast in their endeavors to continually enhance the technological, efficiency, and safety specifications of their vehicles. This persistent evolution is aimed at empowering operators to attain heightened performance levels and amplify productivity. The preceding years have posed considerable challenges across numerous sectors, underscoring the heightened value of productivity enhancements capable of fostering improved bottom lines and profits.

Opting to upgrade to a more efficient and productivity-oriented vehicle at this juncture holds the potential to serve as a catalyst, positioning the business for a trajectory of more lucrative years ahead. This strategic move can potentially pave the way for sustained profitability and enhanced operational outcomes in the foreseeable future.

Investment Incentives and Tax Breaks

IAWO and temporary full expensing have been the talk of the truck sales and lending sector since first announced in April 2020. But as the benefits are significant to eligible businesses, they are worth constant reminders.

For businesses that meet the eligibility criteria and are pursuing eligible asset acquisitions, these initiatives remain accessible until June 2023. However, if your business is poised to capitalize on these opportunities in tandem with the loss carry back measure, expediting action may prove advantageous to harness the benefits within the current fiscal year.

Truck Loan Availability

While some may be putting their feet up for the traditional end-of-year quieter period, Jade Truck Loans consultants are available to assist our customers in sourcing cheap truck finance to effect that purchase. How Does Jade Truck Loans Get The Rates So Low? There are plenty of good reasons to act on that new truck purchase now! Our consultants remain dedicated to securing the best possible rates for our clients, even during this seemingly subdued period. Don't miss out on the advantages of investing in a new truck at this time.

Contact Jade Truck Loans on 1300 000 003 to discuss a quote on finance for your truck purchase.