Having arrived at the conclusion that the present juncture is ideal for a truck investment, the subsequent significant choice involves selecting the appropriate make and model. This decision rests on a pivotal crossroads: adhering to your existing brand allegiance or casting a wide net to explore a diverse array of possibilities? Central factors influencing your purchase include price, functionality, and alignment with your intended application and purpose.
For those who haven't undertaken a vehicle upgrade in some time or are newcomers to the industry, embarking on a review of the choices favoured by others in the field could prove insightful and valuable. This can provide a practical benchmark for your decision-making process.
To assist buyers, the Truck Industry Council truck sales data is released each month with details on number of units sold by each manufacturer, year-on-year (YoY) comparisons and growth for that month. When assessing current sales figures, the ‘COVID effect’ should be kept in mind. Some manufacturers have experienced supply issues over the past year or so and many are currently still impacted by the global computer chip shortage. So sales may reflect more what was available to buy rather than buyers’ first preference.
General Trends
As anticipated, the light-duty sector is revealing remarkable statistics, with a notable surge in general delivery work owing to the circumstances stemming from the COVID-19 situation. As per the gathered data, the collective sales witnessed a commendable 28.9% increase in September, signifying a remarkable advancement of over 20% when assessed on a year-to-date basis in relation to the prior relevant timeframe. Notably, despite the hurdles posed by COVID-19, particularly the recent outbreaks involving the Delta variant, the sales figures have surpassed the corresponding periods' pre-COVID 2019 figures.
Recent sales upswings can be attributed to a range of factors, which may include the prevailing low-interest rate environment, alongside the generous investment incentive programs introduced by the Federal Government.
Across the 10 major truck makers, all but Volvo posted impressive growth on a year to date basis. Volvo being down 13%. The strongest growth percentage performers were Daimler and Mercedes-Benz. The top sales overall was posted by Isuzu, followed by Hino, Fuso, Kenworth and Mercedes-Benz rounding out the top 5. Next in order are Volvo, IVECO, Scania, UD and DAF sitting in 10th.
Top Sellers by Sector
The heavy-duty sector showcased an impressive surge in new registrations during September, marking a significant rise compared to figures from 2020 and a slight elevation over 2019 statistics. Notably, the leading brands for the month were ranked as follows: Kenworth secured the top spot, followed by Volvo (despite a decline), Isuzu, Mercedes-Benz, and Scania.
Within the medium-duty range, the total sales reported were less striking than those in the heavy-duty category, yet they still outperformed results from September 2019. Analyzing year-to-date sales, the dominant brands emerged as Isuzu, Hino, Fuso, UD, and IVECO. The burgeoning popularity of built-ready and ready-to-work models from these manufacturers is notably contributing to their success within this sector, providing buyers with a practical alternative to bespoke custom builds.
As noted earlier, the light-duty sector sustained its ongoing sales trends, recording yet another upswing. The leading brands in this segment all exhibited noteworthy growth on a year-to-date basis. The top three contenders, Isuzu, Hino, and Fuso, each displayed impressive year-over-year increases, surpassing the 30% mark. IVECO and Fiat rounded out the roster of top five best-selling brands within this segment.
Cost, Price and Finance Assessments
Even as a prevailing sense of optimism pervades the business landscape, a notable proportion of business proprietors remain acutely attuned to the latent risk and lingering uncertainty stemming from the ongoing COVID situation. For many, the forthcoming purchasing deliberation will be profoundly anchored in the domain of price, and more critically, the overarching cost. While the initial price tag of a vehicle certainly bears weight, the ultimate concern often gravitates toward the comprehensive impact that a truck may exert on the business's financial landscape, chiefly in terms of loan repayments.
It's crucial to recognize that the actual financial outlay incurred by a business extends beyond the mere ticket price of the vehicle. Prudent decision-making necessitates a thorough consideration of the broader implications that a truck's acquisition might exert on the enterprise's fiscal commitments.
Lending interest rates are currently at historic lows which has enabled Jade Truck Loans to achieve our own records in terms of cheap truck finance interest rates. Our same interest rates apply across the new vehicle market for light, medium and heavy duty sectors and for all brands.
The interest rate does vary across different loan types. The truck finance products available for truck purchases include:-
- Chattel Mortgage
- Leasing
- Commercial Hire Purchase
- Rent to Own
Referring to our Truck finance calculator, you can quickly see the different rates we are currently achieving on the different loan types. While tempting as it is to just go with the lowest rate products being Chattel Mortgage and Commercial Hire Purchase, buyers should consider all features and benefits of the loan type.
Distinctions in the treatment of GST, tax deductions, balance sheet management, and several other factors set apart options like Leasing from Chattel Mortgage. These distinct features bestow diverse advantages contingent on the unique structure of the individual enterprise and the financial aspirations of its owner.
For those seeking to leverage the prevailing investment incentives, such as temporary full expensing and the Instant Asset Write-Off (IAWO), a pivotal prerequisite is the inclusion of the acquired asset on the business's balance sheet. This aspect represents a fundamental characteristic of Chattel Mortgage, differentiating it from alternatives like Leasing and Rent-to-Own arrangements. For a comprehensive evaluation of the appropriateness of a specific loan product aligned with an individual business's circumstances, it is strongly recommended that buyers engage in consultations with their accountants, who possess the expertise to offer informed assessments.
If comparing a few different models, we make it easy to assess how the ticket price might relate to monthly repayments. We provide two valuable resources for this process – our Interest Rate Comparison Calculator and our Truck Loan Calculator. While the former allows for quick comparison across the loan types, the latter includes the additional feature of including a residual/balloon in the calculations.
Investing a new vehicle is a considered and major move for most businesses and we provide a streamlined service to support and assist in sourcing the cheapest truck loan deals to facilitate the purchase. Regardless of which truck brand you opt for, our consultants are available to assist you in the buying process.
Contact Jade Truck Loans on 1300 000 003 for a quote on a truck loan for the vehicle of your choice.
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.
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