- Light commercial vehicle share grew by 0.6% in September
- Passenger motor vehicles decreased by 3.1%
- High confidence with government incentives and low interest rates
- Delivery trucks now in demand as online shopping surges
Sales figures released by the peak body for the automotive industry, the Federal Chamber of Automotive Industries, showed that the light commercial vehicle market share grew by 0.6% in September.
Light Commercial vehicles claimed 22.9 per cent of the market with 15,772 sales.
New vehicle sales decreased by 21.8% in September 2020 compared with the same period last year.
However, the entire commercial vehicle market is only down 324 sales (10.2%) compared to the same time last year.
“The best time to buy” – Savvy MD
Savvy Managing Director Bill Tsouvalas says that businesses, especially those that are reliant on commercial vehicles, should enter the market now before government stimulus ends and interest rates rise.
“There has never been a better time to buy a commercial vehicle,” Mr. Tsouvalas said. “Interest rates are at record lows, government incentives like the instant asset write-off are at record highs, and the government is also guaranteeing funding through the SME Coronavirus Guarantee Scheme. If your business is in the market for a ute, truck, or van, approach dealers now.”
The Federal Government increased the instant asset write-off to $150,000 until the 31st of December 2020.
SME Coronavirus Guarantee Scheme gives small to medium businesses a guarantee on their loans for new or near new assets such as trucks and vans. Businesses can access up to $1 million worth of loans for five-year terms.
Mr. Tsouvalas says that makes the already attractive chattel mortgage option even more alluring.
“A chattel mortgage is a cash flow neutral solution for business. You’ll be able to claim GST paid, interest paid, and depreciation, plus the fuel input tax credit on your next activity statement. You can also finance more than the value of the vehicle, so you won’t have to be out of pocket on registration and insurance.”
Mr. Tsouvalas says that many manufacturers are also enticing businesses to buy with factory bonuses and cutting prices.
“It’s a highly competitive market out there. Don’t be afraid to make a hard deal. Dealers want to make sales, especially now. You can drive a real bargain and grow your business. Online shopping increased by 80% during May and is still at high levels. Australia is going to need delivery trucks more, now than ever.”