The beginning of a new year often heralds a surge in interest for investing in fresh vehicles. As the potential for upcoming interest rate hikes looms, starting as soon as February, this juncture presents an opportune moment to contemplate such a move. To aid prospective buyers in making well-informed choices, examining recent sales performance across various brands can provide valuable insights into the preferences of fellow operators. Parsing through the most up-to-date sales statistics, it's evident that opting for new trucks found favour among numerous proprietors. The recently unveiled sales data encompassing both December 2022 and the entire year showcases noteworthy milestones in the domain of truck sales in Australia.
This result may be seen as both a major achievement given the supply chain issues and not at all surprising given the asset acquisition tax measures available and the prospect of even higher interest rates as the year progressed. After all, truck finance can be critical to the decision to invest in new vehicles.
According to reports in trucksales the head of the Truck Industry Council, Tony McMullen remarked that the 2022 result surpassed the expectations of the industry, passing the 2018 record sales year. We provide this summary of the latest truck sales data to provide insights on the most popular trucks on the market with details on Competitive Rates on Truck Financing to make the purchase.
December Truck Sales – Popular Trucks
The overall sales for the month of December 2022 recorded an increase of 16.6% over the same month in 2021, setting a new record for December sales.
- Heavy duty segment sales: This segment was up for the month and the quarter compared to same periods in 2021.
- Medium duty segment trends: Sales in December were described as ‘slow’ in this segment after modest increases during 2022. The monthly result compared with 2021 was actually down slightly, as was the quarterly result.
- Light duty segment sales record: a new record was set for this segment over the year and for December.
Popular Trucks – Brand Sales 2022
For those in the market for new vehicles, the truck sales data reveals the popular trucks by brand at least over the reporting periods.
- Heavy duty: based on annual sales for 2022, Kenworth reigns as number one followed by Volvo and then Isuzu. Volvo actually increased sales compared with 2021 by just over 50%. Isuzu’s sales were up nearly 36% 2022:2021. UD Trucks also had an impressive increase compared with 2021, 74%, while some other badges including Mercedes, Western Star and Freightliner recorded falls compared with 2021.
- Medium duty: popular trucks brands in this segment are always dominated by the big 3 and 2022 was no different. Isuzu sold the most, followed by Hino and the Fuso. Isuzu’s sales increased while the other two posted small decreases.
- Light duty segment: Isuzu also dominated in the sales for this segment with a 37% increase on 2021 results. Fuso beat Hino into second position with a modest 4.6% increase over their 2021 annual results. Hino’s annual sales result was actually a drop of 18.5% on its 2021 figures.
Interesting data for buyers to ascertain possible popular trucks to consider in their buying plans for 2023.
Sales driven by finance and tax incentives?
The truck market has certainly delivered outstanding sales results of late especially in the light of the supply issues and other constraints affecting many manufacturing sectors. While new business opportunities may be driving the sales, incentives may also be coming through truck finance and tax benefits. We delve into some of the data to explore this explanation.
Operating in finance, we tend to refer to ‘quarters’ for the financial year. But the truck sales figures are reported for quarters in the calendar year. The third calendar quarter being start of the new financial year.
Strong truck sales were recorded in calendar quarter one – January through March. This of course is the start of the new year and a popular time for new purchases. It was also just before interest rates started to rise but when talk about the need for the RBA to act with inflation soaring was very intense.
In the second and fourth calendar quarters truck sales recorded the strongest results for the year. In financial year terms, that’s just before the end of financial year and just before the end of the year. Both popular times for operators to make new asset acquisitions and when the prospect of further interest rate rises was pretty much a certainty. Operators getting in with for cheaper truck loans interest rates before rates rose any further.
One of the key incentives for asset acquisitions over the past few years is without doubt temporary full expensing and instant asset write-off. This measure allows eligible businesses to write-off the full purchase price of the new truck in the same year of the acquisition. Chattel Mortgage For Truck Loans is considered the most appropriate type of truck loan for operators looking to take advantage of the measure.
But currently, this measure expires at the end of the financial year, timing which is seen as a concern by some in the sector. According to reports, Mr. McMullen said that the Truck Industry Council was calling for an extension of this tax measure by the government due to the global issues disrupting delivery for some orders for heavy vehicles.
For buyers that are ready to invest in new popular trucks and can secure their preferred vehicles, now could be the opportune time to make the move ahead of any further rate rises and to ensure meeting the temporary full expensing deadline. If you're considering this option, don't forget to calculate truck loan repayments to get a clear picture of your financial commitment.
Contact Jade Truck Loans on 1300 000 003 to secure cheaper truck finance on popular trucks.
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.