As we approach the conclusion of 2021 and begin to glimpse the potential resolution of the COVID-19 pandemic, it is an opportune moment to evaluate the condition of the trucking sector, as reflected in the November truck sales statistics. While numerous industries have grappled with shutdowns and lockdowns stemming from COVID restrictions, the transport and trucking domain has often faced an elevated workload. This surge in demand has been accompanied by obstacles like border crossing delays, mandatory COVID testing, and other disruptions impacting typical business proceedings.
How has the economic environment influenced the sales of new trucks? What lies ahead for those contemplating significant acquisitions of new vehicles? Jade Truck Loans compiles a range of considerations encompassing the November truck sales data, prevailing tax incentives, and the array of available truck loan options.
Sales Results
According the data from the Truck Industry Council, new truck sales posted another good month in November 2021. Figures cover both truck segments and new van registrations which together posted a 15% increase over November 2020 and 18.5% up on November 2019 results.
The annual totals also see the uptick trend. 2021 being 22% up compared with 2020 and 9.1% compared with 2019, for the same comparison period, January through November.
- Heavy duty sales are up 27.5% comparing November 2021 with 2020 and 23.9% up on the yearly comparison.
- Medium duty sales is up 22.4% on November comparisons and 12.2% when comparing annual data.
- Light duty sales has continued to show impressive sales in line with the growth in the online shopping trend and the need for many businesses to introduce their own delivery services or engage transport operators. Sales in this segment are up 27.7% on monthly comparison and 32.2% on the yearly comparison.
- Sales in the van segment actually declined in November 2021 compared with November 2020 to the tune of 38% but are still up 12.3% on the annual comparison. This may reflect the 2020 surge in demand for delivery services which may have stabilised somewhat by now.
At present, we lack access to a comprehensive breakdown of the most successful manufacturers and models in recent months. Nevertheless, it is crucial to recognize that real delivery and registration statistics may not precisely indicate the popularity of specific vehicles. The trucking sector, similar to numerous other industries, has encountered substantial disruptions in global supply chains, notably due to shortages of computer chips. These challenges have deeply affected various sectors. Numerous products are confronted with substantial order backlogs, and purchasers frequently confront the necessity of waiting for stock to be replenished.
Signs to ‘Buy Now’
If you're considering whether the current favourable conditions in your industry will persist or diminish, we'd like to highlight several factors that might indicate it's a good time to acquire a new vehicle:
- Global Supply Chain Disruptions: Given the challenges in global supply chains and the rising costs of shipping, there could be an uptick in demand for locally produced goods and agricultural products. This could lead to increased work in the general transport sector.
- Continued Online Shopping: The pandemic shifted consumer behavior towards online ordering and home delivery. The recent strain on delivery services and the popularity of events like Black Friday and Cyber Monday suggest that this trend may continue.
- Construction Sector Growth: The construction industry is showing promising signs of growth. New infrastructure projects are being announced and initiated, and with an upcoming Federal Election, the trend is expected to continue and potentially accelerate.
- Housing Market Uptick: The housing market has experienced some improvement recently. Discussions about increasing housing stocks, including affordable housing, are underway. As supply chain delays stabilize, the construction sector could operate at its full capacity.
Considering these factors can help you make an informed decision about acquiring a new vehicle in the current economic landscape.
Tax Incentives for New Buyers
Probably the biggest incentives for businesses to invest in new assets including trucks over the past 20 months has been the Federal Government’s IAWO and temporary full expensing programs. The announcement of these initiatives in 2020 correlated with an uptick in truck sales.
For businesses that have yet to take advantage of these initiatives, it's important to recognize that they are still open for eligible businesses seeking to acquire qualifying assets. While these measures are available until June 2023, businesses aiming to capitalize on the significant tax deduction in the 2021/22 financial year must purchase the trucks and have them operational by June 2022.
There's speculation that the Morrison Government could potentially advance the budget or introduce a mini-budget in alignment with the upcoming federal election, the date of which remains undisclosed. With both major political parties already entering campaign mode, the election may be just around the corner.
There might be anticipation that budget announcements will encompass additional tax incentives for businesses or tax reductions for individual taxpayers.
Truck Loan Options
Jade Truck Loans continues to offer the loan divisions for truck purchases – Rent to Buy, Lease, Commercial Hire Purchase and Chattel Mortgage. These loan types are available for all types of businesses and for Low Docs and No Docs truck loans applicants.
Given the evident increase in new truck purchases and the potential benefits they offer for Commercial Heavy Vehicle & Truck Loans, which is evident from the robust sales figures, it could serve as a sign that you also should consider upgrading. Doing so could lead to improved productivity, enhanced profitability, and a stronger competitive edge when vying for tenders and contracts. Acquiring a more cost-effective vehicle through a well-structured loan could be a strategic move for your business.
Contact Jade Truck Loans on 1300 000 003 for cheap truck finance.
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