The beginning of a new year heralds a series of transformations. Following the unforeseen occurrences and upheavals of 2020, numerous operators will be striving to make up lost ground in 2021. Your strategies might encompass acquiring a new truck or enlarging your fleet by adding more vehicles. To aid you in navigating the financial aspects of the truck acquisition process, we have compiled a concise overview that covers various subjects: tax incentives, loan recommendations, and essential reminders. This comprehensive guide serves as a quick reference, consolidating a wealth of information into one convenient resource. It aims to provide insights into what you might need to understand about truck loans in 2021.
This is just a starting point with basic info and we encourage you to speak with one of our Jade Truck Loans consultants about your specific loan requirements. Our team makes efforts to stay across developments in the truck and transport sector and we regularly post articles of interest on our website. So stay tuned for updates as the year rolls on.
Truck Loan Interest Rates
We start our 2021 guide to truck loans with a catch-up on Interest rates. Always the hottest topic when it comes to loans and finance. In response to the economic effects of COVID-19, the RBA cut the official cash rate on a number of occasions in 2020 and implemented other monetary policies to stimulate the economy.
The result is historic low interest rates across the lending sector. While the official cash rate is not the rate that applies to truck loans, it does effect truck finance interest rates. It is the rate that effects what banks and lenders pay for their funds so that eventually flows through to what lenders such as Jade can offer in interest rates to our customers.
Even as it’s anticipated that rates will remain low throughout 2021, it’s important to note that Jade Truck Loans facilitates loans with fixed interest rates. This signifies that the interest rate we secure for you at the beginning will persist unchanged for the entire duration of the loan. In the event that the Reserve Bank of Australia adjusts its cash rate, your existing loan terms will remain unaffected.
Truck Loan Products
The loan products we offer remain the same through 2021 with the full complement of leasing, rent to own, Chattel Mortgage for truck & trailer finance and CHP available. Interest rates vary across our loan portfolio to reflect the differing structure of each loan.
We’ve made it easy to compare loans with the introduction of our new loan comparison chart. A self-serve resource that allows you to calculate rough estimates on repayments for different truck loan products.
Tax Breaks and Other Measures
For businesses, 2020 may be remembered as the year of the IAWO – Instant Asset Write-Off. A tax measure introduced by the Federal Government to stimulate the economy in response to the coronavirus pandemic. We pushed it hard in our articles as did just about every truck dealer and manufacturer. While the cut-off date for some eligible businesses to take advantage of IAWO was 31 December 2020, there is also temporary full expensing to take advantage of.
This is also an accelerated asset depreciation measure available to eligible businesses for eligible assets and is active through to June 2022. Check out details at ATO or refer to articles in our resources for more info.
If you’re planning to attend the Brisbane Truck Show or a field day, you may be eligible for a grant to cover some of your costs of attending. The Australian Trade and Investment Commission has published a schedule of approved business events for 2021 that are eligible for this grant. The program is open from 4 January to 30 March and you can check out the detail and see if you are eligible at Australian Trade and Investment Commission (Austrade).
Self-Serve Resources and Online Loan Services
We’re fully aware of the work style of truck owners and operators and the time pressures you face on a daily basis. Pressures which can make organising your truck loan via the traditional way of doing things a challenge. We’re making it even easier to arrange your truck finance with an expansion of our self-serve loan resources.
Our Loan Comparison chart allows you to see at a glance the different interest rates on different types of loans and calculate repayment estimates. This resource is in addition to our Truck Loan Calculator which allows you to plan how you may like your truck finance structured in terms of loan term and balloon/residual.
You have the flexibility to utilize these resources at your convenience, accessing them from any location with an internet connection. You even have the option to submit a truck loan application online, or alternatively, you can simply reach out to us via phone and entrust the task to our consultants. We manage the complete loan procedure through online and telephonic interactions, aiming to reduce the amount of time you need to invest while optimising the results of your loan application.
Reminders and Forward Planning
- Don’t forget your annual rego, licence and insurance renewals. Operating without a licence or an unregistered vehicle attracts serious penalties and can impact your insurance.
- March signals the end of the JobKeeper program.
- May is the time for the 2021/22 Federal Budget and businesses will be ‘all ears’ to hear if Treasurer Josh Frydenberg introduces more tax measures and supports for business.
- May is the Brisbane Truck Show and a great opportunity to see new makes and models and catch up on the latest industry news. If planning to place an order, speak with Jade first for a pre-approved loan.
- June is the end date for some tax measures so plan ahead so you don’t miss out.
- EOFY at end of June start of July signal big sales across many sectors.
- Keep an eye on your industry association news for updates in heavy vehicle compliance.
Stay in touch with us here at Jade Truck Loans as we stay across developments in the finance sector and publish regular updates.
To discuss your truck finance requirements, contact Jade Truck Loans on 1300 000 003.
DISCLAIMER: THE CONTENT IN THIS ARTICLE IS PREPARED SOLELY FOR GENERAL INFORMATIONAL PURPOSES. THIS CONTENT IS NOT PROVIDED AS FINANCIAL ADVICE. IF YOU REQUIRE ADVICE AROUND YOUR PERSONAL FINANCIAL SITUATION IT IS RECOMMENDED THAT YOU CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED IN REGARD TO ERRORS OR MIS-REPRESENTATION OF CONTENT AS IT PERTAINS TO GOVERNMENT MEASURES AND POLICIES, PRODUCTS SPECS AND DETAILS AND OTHER DATA AS SOURCE VIA THIRD PARTIES.