While multiple states went into lockdown late in June, the outcome did not stop the truck market from posting a record sales result for the month. According to reports, the sales figures across the market outdid the 2018 record. June is of course EOFY time and as we had been stressing through our channels, truck buyers had plenty of tax benefits on offer courtesy of the IAWO, temporary full expensing and loss carryback. Many buyers would have brought forward purchases into the 20/21 financial year to take advantage of the benefits while others would be gearing up to take on the wealth of infrastructure projects on offer across the country.
In the heavy-duty market, it was Kenworth registering the best monthly result with Volvo second. Mercedes-Benz third and Scania fourth best seller.
In the medium-duty sector, it was the Hino, Isuzu and Fuso lining up on the sales podium. Hino is having a very impressive sales time, especially at the moment.
The light-duty market has been strong in recent times. A major reason being put up is the surge in COVID-created deliveries which this market is ideally suited to. Isuzu topped the June sales figures in this category, then came Hino and Fuso have to settle for another third place.
According to industry sources, the heavy-duty market is showing growth in figures above its 5-year average while the light category is where the majority of growth is being reported. Medium category sales are on average for a 5 year period.
If the rush was one to complete these sales before 30 June, it is likely that the July figures will be less impressive. But buyers are reminded that temporary full expensing and loss carryback is still in play for eligible businesses and eligible asset acquisition in the 2021/22 financial year.
Securing Your New Truck Loan – Pre-approve and Pre-order
In addition to the uncertainty and ups and downs of the COVID situation here in Australia, buyers have also had to contend with global issues in securing new trucks. A shortage of parts, especially computer chips, has been plaguing many manufacturing sectors including truck building, for many months. The shortage has caused delays in building especially heavy-duty vehicles both locally and in many international plants.
Reportedly the supply chain issues are starting to ease but there is likely to be a usual lag time while manufacturers catch up with backorders and return to normal stock availability.
So how can you be at the front of the line for your new truck? Prepare with pre-approved finance!
We provide pre-approved truck finance across our loan portfolio and there is a trend toward pre-approved truck loans for a lot of very sensible reasons. Not only does it mean you can confidently place your order, knowing your funding has been approved, but it also provides the borrower with knowledge of the borrowing capacity prior to purchase and avoiding embarrassing or panic last-minute moves.
Pre-approved loans are applied for, quoted and sourced in the same way as loans requested after the buying process is underway. The key difference besides the timing is with the final loan amount. When applying for a pre-approved loan, our customers don’t always know exactly what the dealer’s invoice will be. So an estimate of the loan amount is made at that stage. When the sale is completed, our Jade consultant finalises the loan details based on the exact amount of the dealer invoice.
If you’re heading to a vehicle auction to purchase, having a pre-approved loan is virtually essential. It can be challenging to bid on a vehicle if you don’t 100% know you can secure finance. It can be even more important with auctions as the truck will be a used vehicle. When making loan offers on used truck finance, our lenders will take the age and condition of the vehicle into account. So relying on only a calculator repayment figure at an interest rate for new goods, would not be the way to go. Click here to view our truck loan repayment calculator.
Maximising Tax Benefits this Financial Year
While many truck buyers clearly wanted to realise the tax benefits of their purchase in 20/21 it’s not too late to realise the same or similar benefits in 21/22. While all of our truck loans offer tax-deductible inclusions, if you’re looking to claim the value of the truck under temporary full expensing, then Chattel Mortgage is seen as the most suitable form of finance.
With Chattel Mortgage for trucks the ownership is immediately given to the borrower and the vehicle, therefore, is entered on the balance sheet. As such the value can be written-off or fully expended through depreciation. This form of finance also allows the full amount of GST applicable to the purchase to be claimed on the next BAS.
Chattel Mortgage also features our lowest interest rate across our truck loan portfolio. Win, win-win! View our truck finance interest rate table to compare deals across multiple lenders and banks.
To secure your truck loan to make that all essential purchases for your fleet, get in touch with our team to discuss a quote and a loan package to suit your business.
Contact 1300 000 003 for a quote on a truck loan.
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.