From a number of perspectives, the good truck sales for May 2022 are not surprising. We have been alerting business operators through our blogs of impending rate rises including in truck loan interest rates and the early May announcement by the RBA made that a reality. Then there is the attractive tax measures of temporary full expensing and IAWO which are available. Businesses looking to realise the benefits of these in 2021/22 would be looking to acquire their vehicles prior to 30 June 2022.
The recent increase in truck sales for May could very well mirror the prevailing truck loan interest rates. This surge may serve as a clear indicator for others to seize the opportunity and make their purchases now, positioning themselves ahead of potential Reserve Bank of Australia (RBA) rate hikes in the near future. The flourishing truck market could be seen as a positive sign for the broader economy. Numerous industries are making commendable strides in recovery post-pandemic, despite lingering challenges concerning supply chains and shortages of skilled labor in certain sectors.
Is this the ideal juncture for you to consider upgrading to new vehicles? In our analysis, we delve into the best-selling models of May, offering insight and inspiration for potential buyers. Additionally, we provide an update on the prevailing interest rates for truck loans. This comprehensive overview empowers individuals to make informed decisions about vehicle upgrades, aligning their choices with the evolving market conditions and the economic climate at large.
Momentum in Latest Truck Sales
The Truck Industry Council provides monthly truck sales reports encompassing various segments, comparing figures with the previous month and the same month of the preceding year. These reports reveal top-selling brands and provide insight into industry trends.
While these sales figures offer guidance regarding preferred brands, it's important to interpret them within the context of ongoing supply chain issues. Moreover, remember that these figures pertain to new truck registrations, which might differ from pending orders awaiting delivery. Used vehicle sales are not included.
May 2022 showcased robust truck sales, notably led by the heavy-duty segment. However, the light and medium-duty segments also exhibited healthy sales. On an overall basis, May 2022 experienced a 3.8% increase in sales compared to May 2021. Examining the year-to-date perspective, the collective sales of this year recorded a 4.7% surge compared to the same period in 2021.
Heavy-duty segment: Sales soared by over 21% compared to May 2021, and the year-to-date performance reflects a 20% upswing over the corresponding period in 2021. Kenworth retained its leading position based on year-to-date figures, exhibiting an almost 28% increase over the same period in 2021. Isuzu claimed the second spot with an impressive 58% rise, followed by Volvo in third place with a 32% climb. Scania secured the fourth spot, trailed by UD Trucks with a remarkable 93% surge over the same period in 2021.
Medium-duty segment: While not as remarkable as the heavy-duty sector, this segment still demonstrated growth, with new vehicle sales increasing by 0.6% compared to the same month in 2021. On a year-to-date basis, the category registered a 9.7% upturn over 2021. Notably, Isuzu maintained its prominence in this category, recording a nearly 28% increase over the same time in 2021. Hino secured the second spot despite a 3.4% downturn compared to the corresponding 2021 period. Fuso followed in third place with a minor 1.6% decrease, while UD achieved a 19.6% increase to clinch fourth position. IVECO occupied the fifth spot, even with a 2% decrease.
Light-duty segment: The surge in online shopping and home deliveries during the pandemic has heightened demand for light-duty trucks, driven by their versatility. May 2022 reported a 14% sales hike compared to May 2021, with the year-to-date category outperforming 2021 by 9.8%. Isuzu's dominance continued, registering further increases. Hino followed with a 9.8% uptick, while Fuso posted a substantial 23.7% rise. IVECO experienced a 7% decrease but still secured fourth place ahead of Mercedes-Benz in fifth.
June Interest Rate Update
There have been plenty of reasons to upgrade to new trucks – the tax measures and record low interest rates on truck loans topping the list. Temporary full expensing will be available for eligible business through the next, 2022/23 financial year, but purchases made after 30 June will be reflected in that year’s accounts. So time is fast running out to acquire new trucks to be able to realise the tax deduction under temporary full expensing in 2021/22.
In June we look like seeing yet another rise in the cash rate by the RBA when it meets this week. This follows the May rise and may not be the last for 2022. Some banks are predicting possibly 4 more increases in coming months. Increases in the cash rate trigger increases by lenders including the truck loan market.
Despite these increases being the first for over 12 years, lending rates do remain very appealing when compared with some earlier years, pre-rate cuts. We continue to source best interest rates for truck loans.
Rates do vary across loan products – Lease, Rent to Own, Commercial Hire Purchase and Chattel Mortgage. Buyers should refer to their accountant when selecting the finance product to suit their business.
If you’re in the market for one of the top selling trucks utilise our truck finance repayment calculator to work up possible repayments to assist the purchase process.
Contact Jade Truck Loans on 1300 000 003 to discuss your truck finance requirements.
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.