While everyone's circumstances are different when it comes to making major purchase decisions, there are different seasons, cycles or financial scene conditions which may make some points in time a better time than another to proceed with that purchase. That may be a personal purchase of a cars, boat, bike or caravan or a business acquisition of vehicles, trucks or equipment. Specifically we’re talking about purchasing with a personal loan or business finance deal.
At Jade Finance we’re not across your personal situation to advise you, that is the role of your accountant or financial advisor. But we are across the finance scene and the markets for many goods and equipment. We’ve put our combined expertise to work to provide our take on whether or not this is the right time to buy.
The COVID-19 Factor
Nothing happening in the world these days seems to be able to be considered without taking into account the effect of the coronavirus pandemic. It’s dominated world events, economic issues and personal lives for some time and it is quite an unknown factor in many respects.
As far as finance goes, in Australia, COVID-19 has been in part responsible for driving interest rates down to historic lows. The official interest rate was relatively low before COVID emerged but as a stimulus measure, the Reserve Bank has reduced the rate even further and looks like keeping rates low for some time.
This means that lenders can source their funds at lower rates to make finance more readily available at cheaper rates to individuals and businesses to stimulate spending. So in regard to sourcing loans, the current low interest rate conditions do make for an attractive time for borrowers.
On the general economic scene, the outlook is not so good in some sectors thanks to COVID. The impacts of a recession and high unemployment may deter some from taking on loans at this time. But some industries, individual sectors and regions are doing better and that may affect your individual decision.
The coronavirus has led to numerous stimulus and recovery measures and initiatives by both Federal and state governments which make the prospect of acquiring assets quite attractive. Some of the measures such as Instant Asset Write Off do have a cut-off date. So if you want to take advantage of these measures and realise the tax benefits, now is probably a good time to buy.
The shutdowns caused by the pandemic has left some suppliers and manufacturers with excess stock which they need to move. This can mean great prices on goods such as cars, trucks and equipment. Good value deals are on offer through many dealers.
In a reverse take, coronavirus has many people looking at ‘staycations’ which has led to an apparent surge in demand for boats and caravans especially. For new goods, this may mean perhaps prices are still OK but supply may be low or delivery delayed. Many caravans are custom-built to order and buyers usually have to wait a while for delivery in normal circumstances. With big demand, manufacturers may be running at capacity so buyers may have to wait a bit longer than usual. So if you want your new boat or caravan well in time for the summer holiday season then now would probably be a good time to place your order.
The Car Market
Car dealers and manufacturers traditionally offer some of their best clearances in June-July to coincide with the end of the financial year. While these are over for 2020, many will still be offering plate clearances in the lead up to the end of the year and another reason to consider a business vehicle finance. The car market was impacted by shutdowns and they should have stock to move, so deals should be available.
The transport sector has continued to operate and construction is flagged as being a major driver for economic recovery. New projects and work may be available in your sector so now could be the time to invest in that new vehicle so you’re ready to grab the opportunities as they arise.
Jade provides equipment finance across all industry sectors so it is difficult to give a take on such a broad and diverse area. We are seeing new models of heavy equipment continuing to be released into the market which may indicate a good time to invest in the latest technologies.
The Finance Wrap
Many of our lenders, especially the banks, were under pressure early in 2020 but we are seeing lending return to more workable conditions. Interest rates are low, Jade Finance is working as normal and ready to assist you.
While the final decision to purchase is your individual choice, Jade Finance can assist with a no obligation quote on finance. Your consultant can source you’re a quote for a car, boat, motorbike, caravan and truck loans for your consideration. If it meets your approval, only then do we proceed to finalise. There’s no obligation in requesting a quote.
So is now the right time to buy? We’ll side-step that slightly and say now may at least be the right time to ask for a quote on a personal loan or business finance deal.
For a quote on the purchase of goods for your personal use or equipment and vehicles for your business, please feel free to contact Jade Finance on 1300 000 008
DISCLAIMER: ALL INFORMATION PRESENTED IN THESE ARTICLES IS FOR GENERAL INFORMATIONAL PURPOSES AND BUSINESSES AND INDIVIDUALS SHOULD SEEK INDEPENDENT FINANCIAL ADVICE IN REGARD TO THEIR OWN FINANCIAL DECISIONS AND CIRCUMSTANCES. DETAILS ON GOVERNMENT MEASURES, POLICIES AND GUIDELINES AND VEHICLE DETAILS AND SPECS HAVE BEEN SOURCED FROM PUBLICLY AVAILABLE WEBSITES AND SOURCES. LIABILITY IS NOT ACCEPTED FOR ERRORS IN INTERPRETATION OR PRESENTATION OF ANY FACTS AND DETAILS FROM THIRD PARTIES. WE ADVISE INDIVIDUALS TO CHECK DETAILS DIRECTLY AT THE THIRD PARTY SOURCE IF REQUIRED.