Wrap or rant? Yes, it’s definitely been a crazy start to the year with many ranting on about the impacts on business of COVID-19, bushfires and the extreme rain events earlier in the year. Yes, cast your mind back! A lot has happened in a relatively short space of time. As many in the transport sector have been flat out busy, gratefully, you may have missed some key opportunities and info. So we’re providing a mid-year update of key finance, lending and business issues.
While you may have been fortunate to have been fairly ‘business as usual’ throughout the coronavirus crisis period, many businesses are only just emerging from hibernation and many others will be limited by restrictions for a lot longer. Hot on the list of topics for discussion in economic circles is how will the recovery look? Will it be a sharp V snapback, a more staggered W or will businesses struggle to get out of the bath with a deep U shaped recovery?
Clearly, there will be differing outcomes depending on your business.
Usually a mid-year update would include an analysis of Federal Budget policies. But with the Budget deferred to October, we’re taking a look at what is happening now and what’s on offer to assist your business and specifically your truck purchasing.
If you’re a pessimist you might focus on: looming recession, high unemployment and the risk of a second wave of coronavirus.
If you’re a realist, focus on: record low interest rates, increasing consumer confidence figures and new business opportunities emerging.
For the optimists, we throw the possibility of an expansion of the Government’s COVID-19 business support measures into the mix!
Support for Business
Many businesses benefited from the range of Government stimulus measures including the SME cash payments, JobKeeper and a raft of state-based measures including payroll tax relief and the waiving of various fees and charges. Additional grants have been announced by some states and a number of the original measures do extend through a reasonable timeframe, so it’s worth checking out what’s on offer in your state.
JobKeeper was extended to include sole traders and with many of our truck loan customers operating as owner-operators sole traders, you may have benefited from this program. It’s due for expiry on 30 September and there is much conjecture over whether it will be extended, amended or targeted to specific sectors.
Good news for truck buyers was the The Instant Asset Write Off (IAWO) and even better news, the extended deadline to 31 December 2020. If you haven’t had the chance to purchase your truck and take advantage of this opp, now could be the time to put those plans into action. Check with your accountant as to whether your business is eligible for IAWO and if it suits your business and get in touch with a Jade Truck Loans to tailor a cheap truck loan to suit the requirements.
Building and construction businesses could be in for increased opportunities with Governments flagging infrastructure and the housing sector as key areas to drive the recovery. A number of major projects have been announced, keep an eye out for tenders in your area.
Under the technical definition of a recession which is based on several months of negative growth, Australia is in a recession. In some sectors, the increased activity as people emerge from their restrictive lifestyles, it does feel a lot more like boom time! Not surprisingly, economic commentators and analysts have varying forecasts for how it will all play out. From our viewpoint – we’re concentrating on ‘getting on with the job’ and supporting our customers with cheap truck loans to boost their business.
A few key points to note:
- Lenders tightened restrictions on loans early in the crisis as banks especially were hit hard with people requesting deferrals and businesses seeking loans to get them through closure.
- We’re seeing an easing from those extreme levels and access to quality truck loans is good.
- Interest rates remain at historic low levels and not expected to fall lower. With many truck loans extending over up to 7 years, the interest rate is a critical factor in the overall cost of a truck loan. Now could be a good time for you to upgrade your vehicle.
- Despite COVID-19, several truck manufacturers have continued to release new models and we will be showcasing some of these in our ongoing Showcase Series of articles.
- The used market continues to be strong as usual.
- Mid-year is the time to grab a great EOFY deal and towards the end of the year, some dealers will be offering end of year clearance sales.
Truck Loan Outlook
As many of you know, Jade Truck Loans continued ‘business as usual’ throughout the COVID-19 crisis and supported our customers as far as possible, despite some issues with lenders.
If you missed out on truck finance through your bank during the height of the crisis due to their tightened guidelines, we invite you to get in touch with Jade Truck Loans to discuss a ‘second chance’ truck loan. We’re accredited with many lenders and we know who is offering the best deals to suit specific requirements.
With interest rates low, EOFY deals available and the possibility of new work opportunities in your sector, now could be time to act on your investment plans. Bring them off the back burner and onto the hot plate with a call to Jade Truck Loans.
To arrange a great truck loan on a new or a used truck, contact Jade Truck Loans on 1300 000 003 for a quote.
DISCLAIMER:THIS INFORMATION HAS BEEN PROVIDE AS GENERAL MATERIAL FOR YOUR CONSIDERATION. INFORMATION IN REGARD TO GOVERNMENT POLICIES IS SOURCED FROM OFFICIAL AUSTRALIAN GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ERRORS IN PRESENTATION OR IN THE INTERPRETATION OF FACTS OR THE COMMENTARY AND ANALYSIS OF INFORMATION WHICH IS AVAILABLE IN THE PUBLIC DOMAIN. INDIVIDUALS ARE ADVISED TO CONSULT WITH THEIR FINANCIAL ADVISOR OR ACCOUNTANT FOR SPECIFIC ADVICE REGARDING THEIR INDIVIDUAL SITUATION.