Business Finance Australia supports businesses to boost their operation with investment in new trucks with heavy vehicle finance at cheaper interest rates.
Based on the recent truck sales figures as released by the Truck Industry Council, many operators are taking advantage of tax benefits and improving business conditions to upgrade their vehicles.
2022 ended with record-breaking truck sales results and many may have expected somewhat of a lull to follow such a busy selling period. But clearly, owners and operators had different ideas and were out in force in January to take delivery of new vehicles.
The timing is of course spot on. As we and many others in the finance sector have been alluding to, further interest rate hikes are highly likely from the RBA
in the early part of this year. The release of the annual inflation figures last month by the Australian Bureau of Statistics revealed that inflationary pressures were still present in the Australian economy. Pressures that can indicate the need for higher rates.
Another key motivator for acquiring assets at this time is the clock ticking on the availability of temporary full expensing
. The very attractive accelerated asset depreciation measure which allows for the full purchase price of eligible depreciable assets to be depreciated in the year of purchase.
In a financial year where businesses have endured a continual upward spiral in operating costs, relief in lower taxable income through this larger deduction will be most appreciated. Lower taxable income essentially means less tax would be payable. That is a win any way you look at it!
While the tax breaks can present a win on the costs front, the purchase of new trucks can present a win or improvements on many other fronts. Upgrading safety for operators and other road users; reduced emissions and fuel consumption with more efficient engine technology; improved overall productivity; and a potential increase in turnover with the capacity to increase contracts and work volume.
Based on the sales records set for January's new trucks, many operators are ahead of the curve.
January Truck Sales – New Records Set
According to reports in trucksales on release of the TIC data for new sales, 2785 new trucks were delivered to buyers in January 2023. That is nearly 30% above the numbers sold in January of last year. The figure is a record for the first month of the year. The previous record held by the year 2008.
The heavy-duty segment was a big performer through much of 2022 – doing a lot of the heavy lifting. The category established new sales record for January 2023, up nearly 28% on January 2022.
The medium-duty segment recorded an uptick compared with the start of 2022 but only a 5.7% increase in sales.
The light-duty segment set records in January 2022 and outdid itself for the start of 2023. For January 2023 nearly 29% more vehicles were delivered in this segment than in January 2022.
The light duty van category did not perform well through 2022 for a number of key reasons. Especially the manufacturing issues being faced in Europe which slowed down supply in Australia. Sales rebounded somewhat in the latter part of 2022 and that continued through January this year.
Coming off a very small sales number in January 2022, the segment recorded an 84% sales increase in 2023.
While the figures are heartening for truck builders and dealers and motivation for operators that are yet to purchase to get moving, caution has been suggested by some in the industry. Businesses across many industries continue to face a raft of challenges in uncertain economic conditions. Inflation is as yet not heading down, costs are on the up and the tightness in the labour market is also continuing.
But with many others already upgrading, it could be time for you to stay abreast of the competition and make your own acquisition with finance from Business Finance Australia.
Getting Approved for Cheaper Heavy Vehicle Finance
Our comprehensive selection of asset acquisition finance products including the availability of Low Doc and No Doc options
, ensures we have a solution to suit all types of businesses and all types of vehicles.
, Leasing, Rent to Buy and CHP are all available through us and with our larger number of lenders, we have the capability and most importantly the enthusiasm, to source the cheapest interest rates.
Our consultants ensure the process of getting approved for heavy vehicle finance is streamlined, fast, time-saving and easy. Simply give us the details of the truck you’re considering and about your business and your consultant does the hard work of sourcing and negotiating the cheapest offer.
Applications can be approved very fast to ensure the purchase and vehicle delivery is expedited and working to boost your business as quickly as possible.
For heavy duty vehicle finance quotes and fast approvals, contact Business Finance Australia 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.