Aussie businesses load up on light commercial vehicles

New asset finance numbers show an 187 percent increase in light commercial vehicle sales since January, indicating that Australian businesses have stepped up their game this year.

Sales of all types of vehicles drove the increase in business vehicle financing, no doubt in part because SMEs took advantage of the federal government’s temporary full expensing program (aka rapid asset write-off) before June 30.

Here’s a quick rundown of Commonwealth Bank (CBA) business loan data by vehicle type:

– Light commercial vehicles increased 187%.

– Utes and vans increased 85%.

– Heavy trucks increased 50%.

– New motor vehicles including passenger and SUVs increased 36%.

“In the last year, we’ve seen the federal government’s instant asset write-off scheme help many of our customers,” says Clare Morgan, CBA Executive General Manager, Business Lending.

“As we get closer to the end of the financial year, there’s a general expectation that we’ll see an increase in both business vehicle financing and registrations.”

What is this interim full expensing strategy, exactly?

Temporary full expensing is essentially a more comprehensive version of the popular quick asset write-off method.

It allows businesses of all sizes, large and small, to write off any depreciable asset immediately until June 30, 2023. (recently extended from 30 June 2022 in the federal budget).

This can help you increase your cash flow by allowing you to reinvest funds into your company more quickly.

But there’s a catch: in order to be eligible for this financial year, the asset must be installed and ready to use by June 30.

Before the end of the year, put the pedal to the metal.

If you’d want assistance acquiring financing that’s easy on your company’s cash flow while also assisting you in achieving your long-term objectives, please contact us soon so we can help you beat the EOFY deadline.

We work with a variety of lenders and would be delighted to present you with financing solutions that are well-suited to your company’s current and future needs.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au


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