The truck sector sales figures for the month of May were recently released and reveal good momentum in the sector. While judging monthly figures in isolation in any sector at the moment is contentious due to global supply chains, semi-conductors and other supply issues, it is not surprising to see a May surge. EOFY, attractive tax measures and securing cheap truck loan interest rates prior to more rate rises are solid reasons to purchase new trucks at this time.
It was no real surprise to see the RBA acting on the first Tuesday in May by raising the cash rate and the same is likely to occur in June and on several other ‘first Tuesdays’ this year. Truck finance lenders will follow the RBA by increasing lending rates. A scenario which we have been reminding customers about for some months.
So the reality may be setting in and it’s time to move. Time to purchase those new vehicle before further rate rises. We secure our full range of truck finance at a fixed interest rate. That means that the rate is locked in for the entire loan term and is not affected by any future rate rises. By referring to our Truck Loan Calculator and inputting varying rates, the difference in loan repayments from even a small rate rise can be significant.
In addition to the urgency around interest rates, there are also the current tax measures available for the acquisition of assets such as trucks and heavy vehicles. Temporary full expensing and IAWO present businesses with very attractive tax deductions on eligible acquisitions. The benefit is realised in the year of purchase, so it’s not surprising to see good truck sale figures in May as operators finalise purchases pre-EOFY.
May 2022 New Sales - Truck
The May sales figures for the truck sector are reported for heavy, medium and light duty with the stats compared with the same period in the year before and the month prior. The top selling brands are also revealed. Stats that may give buyers ideas for what makes and models to consider for their own purchases.
But both 2022 and 2021 are periods impacted heavily by pandemic and supply issues. So drawing definitive conclusions from sales stats on a monthly basis should be done with caution. Also note that the figures relate to new regos and don’t include sales of used trucks.
With all that noted, it was the heavy-duty segment which posted the most impressive gains last month. Overall, comparing May 2022 with May 2021, total truck sales across all categories reveals an increase of nearly 4%. For YTD sales, that 4.7% up compared with 2021.
Great news for the manufacturers and encouraging indications that operators are optimistic about work opportunities moving forward.
In the heavy-duty category, the May 2021:May 2022 comparison shows an increase this year of just above 21%. For YTD it’s a 20% increase. The top-selling maker was Kenworth which posted an uptick of close to 28% over sales in the corresponding 2021 timeframe.
Second spot went to Isuzu which increased sales by 58% followed by Volvo. Scania and UD round out the top five.
In the versatile and highly competitive medium-duty category sales were up slightly compared with May 2021 and up 9.7% YTD. Isuzu was the biggest selling brand with a 28% increase followed by Hino which actually recorded a drop of 3.4%. Fuso, also slightly reduced in sales came third. UD and IVECO complete the top five.
The light-duty market has been in high demand with the surge in demand for delivery services due to the pandemic. While many operators would have upgraded in 2020 and 2021, it is great to see sales are still strong with 14% up on the same month last year and YTD up 9.8%.
Isuzu again came out on top in this hotly contested category, then came Hino, Fuso, IVECO and Mercedes-Benz.
Which will be your next vehicle? To be ready to order on your first visit to the dealership, contact is prior for pre-approved truck finance.
New Kenworth Model
In addition to holding top spot in sales, Kenworth also celebrated a new model release in May – the K220. This is described as new generation but while retaining the brand and range heritage. This is a cab-over model with many upgrades especially in safety, comfort and of course tech.
Several configurations will be available in the K220 – 6x4, 8x4 with variations, 10x4 tandem, 10x6 formats and 8x6. To discuss finance on a new Kenworth, contact us at Jade Finance. We offer the full range of loan products including Low Docs and No Docs for the purchase of new heavy vehicles.
Truck Loan Options
Our range of finance products to purchase new trucks includes the full complement of options:-
- Chattel Mortgage aka Heavy Vehicle Loan
- Truck Lease
- Truck Rent to Buyer
- Commercial Hire Purchase
The interest rates vary with these loan products as does the way tax deductions are realised. For those seeking to use temporary full expensing, Chattel Mortgage is seen as the most suitable truck loan type.
Loans are available for all types of businesses including those just starting up through our Low Docs and No Docs options. Loans which are not always available through all lenders. We also work to assist those requiring Bad Credit Truck Loans to source a workable option.
If you’re considering new vehicles to keep the upward momentum moving in your business, request a finance quote at better interest rates.
Contact Jade Finance 1300 000 008 for cost-effective truck finance
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