Despite several states entering lockdowns towards the end of June, the truck market managed to achieve a remarkable sales outcome for the month. Reports indicate that the sales figures across the market surpassed the previous record set in 2018. It's worth noting that June marks the end of the financial year, and as we have consistently highlighted, truck buyers had ample tax advantages available to them through the IAWO (Instant Asset Write-Off), temporary full expensing, and loss carry back measures. Many buyers likely expedited their purchases into the 2020/21 financial year to capitalize on these benefits, while others are gearing up to seize opportunities arising from various infrastructure projects nationwide.
In the heavy-duty market, it was Kenworth registering the best monthly result with Volvo second. Mercedes-Benz third and Scania fourth best seller.
In the medium-duty sector, the top performers in terms of sales were Hino, Isuzu, and Fuso, securing positions on the sales podium. Hino, in particular, has been experiencing a notable surge in sales, showcasing impressive performance, especially in the current environment.
The light-duty market has also been thriving recently, largely due to the increased demand for deliveries prompted by the COVID-19 situation. Isuzu led the sales figures in the light-duty category for June, followed by Hino, while Fuso secured the third spot.
According to industry sources, the heavy-duty market is showing growth in figures above its 5-year average while the light category is where the majority of growth is being reported. Medium category sales are on average for a 5 year period.
The rush to finalize these sales before the end of June may have contributed to the impressive figures for that month, making it possible that the sales numbers for July might not be as remarkable. However, it's important for buyers to remember that the benefits of temporary full expensing and loss carry back are still available for eligible businesses and eligible asset acquisitions throughout the 2021/22 financial year.
Securing Your New Truck Loan - Pre-approve and Pre-order
In addition to the uncertainty and ups and downs of the COVID situation here in Australia, buyers have also had to contend with global issues in securing new trucks. A shortage of parts, especially computer chips, has been plaguing many manufacturing sectors including truck building, for many months. The shortage has caused delays in building especially heavy-duty vehicles both locally and in many international plants.
According to reports, the supply chain challenges are gradually improving, although there might still be a period of time before manufacturers catch up with backorders and return to normal stock availability.
To secure your new truck ahead of others, consider preparing with a pre-approved finance arrangement!
We offer pre-approved truck finance options across our range of loans, and there is a growing trend towards opting for pre-approved truck loans for several valid reasons. Beyond the assurance of having your funding pre-approved when placing an order, this approach also provides borrowers with a clear understanding of their borrowing capacity before making a purchase. This proactive step helps avoid last-minute rushes or awkward situations.
Applying for pre-approved loans is similar to the process of applying for loans after starting the buying process. The main difference, apart from timing, lies in the final loan amount. During pre-approval, our customers might not have the exact dealer invoice amount. As a result, an estimated loan amount is determined at that stage. When the sale is finalized, our Jade consultant fine-tunes the loan details based on the precise dealer invoice amount.
If you’re heading to a vehicle auction to purchase, having a pre-approved loan is virtually essential. It can be challenging to bid on a vehicle if you don’t 100% know you can secure finance. It can be even more important with auctions as the truck will be a used vehicle. When making loan offers on used truck finance, our lenders will take the age and condition of the vehicle into account. So relying on only a calculator repayment figure at an interest rate for new goods, would not be the way to go. Calculate Truck Loan Repayments for Used Truck Finance - Old Trucks Loans to get accurate estimates tailored to the specific conditions and financing requirements of the vehicle you're considering.
Maximising Tax Benefits this Financial Year
Although many truck buyers aimed to capitalize on the tax advantages of their purchases in the 2020/21 financial year, there's still an opportunity to attain comparable benefits in the 2021/22 period. While all our truck loan options feature tax-deductible components, if your goal is to claim the truck's value under the temporary full expensing scheme, Chattel Mortgage is widely considered the most appropriate financing choice.
With Chattel Mortgage for trucks the ownership is immediately given to the borrower and the vehicle, therefore, is entered on the balance sheet. As such the value can be written-off or fully expended through depreciation. This form of finance also allows the full amount of GST applicable to the purchase to be claimed on the next BAS.
Chattel Mortgage also features our lowest interest rate across our truck loan portfolio. Win, win-win! View our truck finance interest rate table to compare deals across multiple lenders and banks.
To secure your truck loan to make that all essential purchases for your fleet, get in touch with our team to discuss a quote and a loan package to suit your business.
Contact 1300 000 003 for a quote on a truck loan.
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.