The new year has commenced on a promising note for many players in the trucking industry, marked by remarkably positive new truck sales figures in the month of January. Undoubtedly, the allure of investing in new trucks is partly fuelled by the prevailing low-interest rate environment, which paves the way for economical truck loans, coupled with appealing tax incentives for asset acquisitions.
Notably, new truck registrations for January 2022 have surpassed the figures from the same period in 2021. Across all segments of the market – heavy, medium, and light – performance has been robust. We provide updated insights into which truck manufacturers have excelled in these reports and elaborate on how prospective buyers can capitalize on the prevailing lending opportunities to secure budget-friendly finance for their new truck purchases.
Monthly Sales Results
As per the TIC T-Mark data reports, January 2022 exhibited a notable 7.5% surge in new vehicle registrations when compared to the same period in 2021. Diving into specific segments, the heavy-duty sector experienced a substantial uptick of 23.5%, the medium-duty sector saw a 15% increase, and the light-duty sector witnessed a 5.3% rise. Notably, the surge in demand for delivery services during the initial stages of the pandemic had significantly boosted the demand for light-duty trucks. Consequently, it's plausible that many operators had already made their investments in new vehicles throughout 2020 and 2021, leading to a relatively subdued demand in this segment at present.
When scrutinizing the top-selling brands within each category, it's imperative to consider the prevailing supply challenges. The availability of new vehicles across numerous brands has been significantly hampered due to the microprocessor shortage and wider global supply issues. It's essential to recognize that these figures are grounded in registrations, signifying the actual vehicles delivered during that specific month. It's worth noting that several manufacturers and dealers might have extensive order backlogs awaiting fulfilment.
We covered off on many of these issues in our article covering the best-selling trucks for 2021 which could be worth re-reading by prospective buyers.
The figures are presented both in comprehensive terms and categorized by segments and brands, with the percentage change in comparison to the corresponding period of the previous year duly highlighted. In the context of the January 2022 data, the percentage reflects the increase or decrease in sales when compared to January 2021.
Taking into account all segments, including light commercial vehicles, the leading 5 brands based on sales figures are as follows: Isuzu, exhibiting a notable 24.4% increase from January 2021; Hino, experiencing a modest decline of just over 9%; Fuso, achieving a growth of 17%; Kenworth, marking a substantial surge of nearly 34%; and Volvo, posting a commendable 14% increase.
In the heavy-duty category it was that impressive increase on January 2021 results which got Kenworth into top spot. Isuzu followed with another impressive 56.8% increase then Volvo up 17%, Mack with a 190% increase but from a small base with only 58 units sold and similar results put UD Trucks in fifth with 125% increase with 54 units.
In the fiercely competitive medium-duty segment, the familiar contenders engaged in the race for the top 5 positions. Isuzu claimed the lead, registering an impressive nearly 47% surge in comparison to the January 2021 outcomes. Following suit was Hino, although it experienced a decline of 14%. Fuso recorded a commendable increase of nearly 16%, securing the third spot. IVECO maintained its presence in the fourth position, albeit with a substantial 50% drop in sales. Meanwhile, Mercedes-Benz held the fifth position with 6 vehicles sold, marking a noteworthy 100% surge in comparison to the same month in 2021.
In the highly versatile light-duty segment, Isuzu once again took the lead with a modest increase of 3.3%. Following closely, Fuso showcased a stronger increase of 18%. Hino experienced a minor decline of 7%. IVECO secured the fourth position, with 51 vehicles sold and an impressive 183% surge compared to the same period last year. Notably, Fiat registered 49 vehicles sold, signifying a substantial 44% increase from the corresponding period in 2021.
These sales results undoubtedly offer encouragement and rewards to a sector that has navigated the nation through the challenges of the pandemic and continues to experience high demand, even as global and local factors impact supply chains.
Attractive Finance and Tax Measures
Two major factors which have no doubt added to the appeal to purchase new trucks in the past 2 years are the cheap truck loan interest rates and the investment incentives introduced by the Federal Government.
Currently the official cash rate is at a historic low which flows on to Jade Truck Loans being in a position to achieve some of our cheapest interest rate truck loans ever. But there are strong indications that the RBA will move to increase the cash rate sometime in 2022, bringing forward their previously indicated 2024 timeframe.
To avoid paying more in interest on a truck loan as a result of any increase in rates, buyers can get in now. We offer cheap rates across our truck loan products and business owners should consult with their accountant regarding which loan type will deliver them the best range of benefits.
For businesses keen on realising the tax deductions available through temporary full expensing, Chattel Mortgage Truck Loan is considered the most appropriate. This investment incentive is in place until June 2023 but to include the deduction in 2021/22 tax return businesses need to have those eligible assets operational in the business prior to end of June 2022.
Given the prevailing low-interest rate scenario, coupled with the potential for an upcoming rate hike, and the approach of the end of the financial year (EOFY) when businesses often seek to leverage temporary full expensing, there is a strong likelihood of witnessing continued favourable truck sales figures in the upcoming months. If you’re aiming to initiate your purchase, don’t hesitate to engage with our consultants who can provide you with a quote on affordable truck finance. This could be an opportune moment to make your move.
Contact Jade Truck Loans on 1300 000 003 for a quote on a cheap interest rate truck loan.
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