Best time to buy commercial vehicles: finance expert

Low interest rates, government incentives and manufacturers’ dropping prices have made it the right time to purchase commercial vehicles according to the Chief of Savvy.

National finance broker Savvy Managing Director Bill Tsouvalas has observed that market conditions don’t get much more favourable for businesses considering purchasing commercial vehicles.

Tsouvalas, who has been quoted by Nine/Fairfax, News Corp, and other leading mastheads as a finance expert, said the combination of low prices, low rates and cash-flow neutral funding had created a perfect storm for prospective buyers.

“Taking advantage of chattel mortgages and hire purchases, combined with asset write-offs and loan guarantees means businesses looking to take advantage of the upcoming boom in manufacturing and construction, as well as logistics, should act now,” he said.

Along with the Federal Government increasing the instant asset write-off to $150,000 until the 31st of December 2020 in response to the COVID-19 pandemic, the additional introduction of the SME Coronavirus Guarantee Scheme, now gives small to medium businesses a guarantee on loans for commercial assets such as trucks and vans.

Businesses can access up to $1 million worth of loans over five-year terms.

Currently, the Reserve Bank of Australia cash rate stands at 0.1 per cent, is the lowest in Australian history.

Pushing the need for commercial vehicles is the boom in online shopping.

Online shopping increased by 80 per cent during May and is still at high levels. Through 2021, the Federal Government’s $1.5 billion Modern Manufacturing Strategy is looking to build resilience in on-shore supply chains.

“On-shore supply chains flow through the arteries of asphalt – our roads,” Tsouvalas said.

“Trucks and vans are the lifeblood of our national supply chain. Transport and logistics companies looking to expand will find competitive rates and write-offs waiting for them right now.”

Chattel mortgages and hire purchases are cash-flow neutral solutions for financing commercial assets. These allow businesses to borrow more than the market value of their assets, affix balloon payments, seasonal repayments, and claim tax advantages.

“You will get your GST back, interest back, and depreciation back,” Tsouvalas said.

“Talking to a business finance broker will structure a loan where you have no initial outlay and can amortise your rego, insurance, and other on-road costs.

“Act now – there may never be a better time to buy.”

According to Tsouvalas 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,” he said.

“You can drive a real bargain and grow your business. Australia is going to need delivery trucks more, now than ever.”

Content brought to you by Savvy.

Leave a Reply