Expected productivity improvements from new work vehicles can be enhanced with cost-effective business vehicle finance at cheaper interest rates.
The expectation when acquiring new work vehicles such as commercial vans, light duty trucks and utes is that greater efficiencies and performance will be realised along with improved productivity to result in increased profitability. But where the finance to acquire these vehicles is not workable for the business, is secured at a higher rate than it could have been, or is not structured to suit specific objectives, those expectations may not be realised.
The interest rate is a major component of vehicle finance and with the current scenario of the RBA
raising rates, many business operators may have put purchase decisions on hold. But for others, ageing vehicles may make those buying decisions for them. All machinery, include vans and utes come to a time when their best days are behind them and they can become more of a liability than an asset.
The timing for upgrading vehicles may not always correspond with the ideal timing in all respects. For example, at the moment supply in the new vehicle market is significantly disrupted. It’s not as easy as usual to buy the vehicle of choice at the time buyers prefer. As a fall-out from these global supply impacts and other issues, vehicle prices are on the rise as are interest rates.
So if you need to purchase new vehicles now, then greater diligence may be required in sourcing the vehicle and in securing the cheapest finance to balance out the possible price increases. We provide the full range of business vehicle finance products and at cheaper interest rates to ensure business operators do achieve a cost-effective solution. Solutions which are customised to the needs of the business and designed to deliver, as expected over the full term of the finance.
While our consultants handle aspects around sourcing the finance, businesses can focus on vehicle selection. The recent August sales results may provide inspiration as to which vehicles are selling best. With the ongoing supply issues, current sales figures should not be taken as an indication of immediate availability. The figures issued by both the Truck Industry Council
and the FCAI
relate to vehicles delivered which could be delivering back orders.
Top Selling Commercial Vehicles
We’ve checked out the stats for a number of categories of commercial vehicle sales for August 2022. These include light-duty commercial vans, vans under 2.5T, vans 2.5T-3.5T and utes. As a general overview, the light-duty truck/van market posted a fall for the month of close on 12%. That factors out to a decline of 28.6% for the year to date comparison with 2021.
In this particular category it was Mercedes-Benz which posted the top sales figures. Renault posted the second best result with VW coming in third.
The monthly VFACTS results report on the other two categories as mentioned above.
For the smaller light commercial vans, those under 2.5T, the top sales result was recorded for the Volkswagen Caddy. The Partner from Peugeot recorded the next best result then came the Renault Kangoo.
In the larger van category, the 2.5-2.5T, the Toyota HiAce was again the top selling vehicle. The result contributed to Toyota’s dominance in recent car sales as the leading brand in overall total sales across the car, van and ute categories. Numerous Toyota models appear in the top 20 best- selling vehicle list.
Following the HiAce it was the Hyundai’s Staria Load which was the second best- seller. Third place went to LDV’s G10. This brand appears to offer more budget-friendly options and could be a consideration for those that are prioritising price with their purchase.
We must share however that Toyota do have a post on their website which states that there are delays with the delivery of the HiAce. So you may not be able to purchase and take delivery of your vehicle immediately. With the current supply issues across the market, buyers with urgent purchasing requirements are advised to consider several options.
In the same category as the HiAce, the new Renault Trafic may be an option. It is a medium sized vehicle with new features on this latest model. But price has increased from previous models. Use our calculator
to work up finance payment estimates on advertised prices to assist with comparing makes and models.
The ute segment of the market has broadened considerably in recent years. But the HiLux and the Ranger, traditional favourites with buyers, remain the leaders in the sales figures. In both the 4x2 and the 4x4, HiLux was first, Ranger second and the Mitsubishi Triton third. Also in the top 20 best- sellers for August including the entire market was the D-Max from Isuzu. So include that in your buying options.
Business Vehicle Finance Options
Our cheaper interest rates across our business vehicle finance
products can add value to a commercial vehicle purchase and contribute to achieving an overall cost-effective outcome. The savings which can be realised in achieving even a small reduction in the interest rate can factor out to a significant amount over the full term of the finance.
Buyers can select from the full range of options including the very popular Chattel Mortgage
, Leasing or Commercial Hire Purchase. As specialists in business finance we do offer options for new businesses with No Doc and Low Docs Finance.
To realise the outcomes you expect from a new work vehicle purchase, ensure you speak with us to secure the cheapest and most cost-effective vehicle finance.
To discuss business vehicle finance contact Business Finance on 1300 000 033
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.