The truck sales data for August indicates the sector is continuing its upward trend with operators possibly securing truck finance to take advantage of tax measures. Operators may have also taken heed of statements by the RBA that further interest rate rises were on the cards and acted to secure truck loans prior to more increases.
Regardless of the driving factors, Tony McMullan from the Truck Industry Council (TIC) believes a record sales year is possible. Impressive monthly and year-to-date sales data come amid potential supply issues causing delivery delays. According to Mr. McMullan, some truck body manufacturers are operating at full capacity, which could lead to further delivery delays.
Those in the process of planning that new truck purchase, checking out the latest sales data can be useful in seeing which makes are the best sellers. Being mindful the figures relate to new vehicle registrations in a particular month. They don’t account for orders not yet delivered or for sales of used vehicles. The used market in trucks and equipment has been showing increases as buyers face delays in acquiring new goods.
Truck Sales for August 2022
The new truck registration figures is released by the TIC and for August 2022 it is heavy-duty segment which continues to do the heavy-lifting. The segment is up 11.5% compared with the same month last year. For the entire market over the entire year, sales are up 5.9% compared with last year.
Isuzu topped the sales figures again in August with an impressive 30.3% rise on the August 2021 figures. Hino, with a much smaller 3% lift was second and Fuso came third with its 5% rise. Kenworth was in fourth in the brands listings and recorded a 12.2% increase. Volvo rounded out the top five overall and also has a significant increase in sales compared with 2021 results with a 36.4% uplift.
As mentioned at the outset, the heavy-duty sector posted the most significant increases. 17.8% increases on a YTD basis and around 21% compared with last year’s August results. Kenworth was the leading manufacturer followed by Volvo and then Isuzu. Isuzu posted the most significant uplift – 56.2%.
The medium-duty segment recorded growth of 4.7% comparing months and 10.9% YTD. Isuzu led the manufacturers posting just short of a 30% increase when comparing figures with the 2021 relevant period. Hino was next and was 0.7% down. Fuso was also down, 6.2% but came in third.
The light-duty segment continued growing with a 17.3% increase in sales compared with August of last year. The leading brand was Isuzu which posted a definitive 24.9% rise. Hino could only manage 1.2% increase for second place with Fuso’s 5.1% rise placing it in third position.
Truck Finance Update
The good performance of the truck sector may reflect the growth in the economy, especially in construction and the general delivery sector over the past few years. The decisions to upgrade vehicles and fleets have also been nudged along with the accommodative interest rate scenario and the generous tax measures.
But operators should not now be on alert as both of those scenarios are closing out. The RBA has now lifted interest rates five times and has indicated that we should be ready for more rises in coming months. The lending market, including those offering truck finance, will respond with their own interest rate rises. By how much and when will be based on their own individual policies and procedures.
We provide services to enable truck buyers to always quickly access the cheapest truck interest rates on truck finance products through our many accreditations with a vast selection of both banks and non-bank lenders.
For those that have never utilised a broker-style lender such as ourselves, we draw your attention to our specialist access to non-bank lenders that focus purely on truck and heavy equipment lending. They understand the market and the operators and unlike banks that are required to adhere to stringent guidelines, can exhibit much greater flexibility. Flexibility in negotiating on rates and those sticky finance conditions that can, at times, cause businesses to become, unstuck.
The other aspect to consider is the temporary full expensing tax measure, which presents generous and attractive tax deductions. However, it's important to note that this measure is slated to expire on 30 June 2023. Given this timeline, operators should begin contemplating the acquisition of new vehicles and coordinating their finance arrangements if they intend to leverage this measure. For this purpose, it's worth exploring various finance options, including truck Chattel Mortgage, Leasing & CHP. Feel free to reach out to us for a quote or to discuss pre-approved finance to ascertain the most fitting approach for your needs.
Upgrading trucks can deliver benefits in greater efficiency, productivity, reduced fuel costs and provide improved driver safety and comfort. When acquired with cheaper truck finance, the overall investment may be an astute, cost-effective decision.
To discuss truck finance on new vehicles, contact Business Finance on 1300 000 033.
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