The spike in business vehicle financing was driven by sales of all classes of vehicles, no doubt partly due to SMEs making the most of the federal government’s temporary full expensing scheme (aka instant asset write-off) ahead of June 30.
Here’s a quick snapshot of the Commonwealth Bank’s (CBA) business financing figures 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%.
“We’ve seen the federal government’s instant asset write-off scheme support many of our customers in the past year,” explains CBA Executive General Manager, Business Lending, Clare Morgan.
“There’s a general expectation that we’ll see an uplift in both financing and registrations of business vehicles as we approach the end of financial year.”
Temporary full expensing is basically an expanded version of the popular instant asset write-off scheme.
It allows businesses, both big and small, to immediately write off any eligible depreciable asset until 30 June 2023 (recently extended from 30 June 2022 in the federal budget).
This can help improve your cash flow as it allows you to reinvest the funds back into your business sooner.
But here’s the catch: the asset must be installed and ready to use by June 30 in order to be eligible for this financial year.
If you’d like help obtaining finance that’s gentle on your business’s cash flow, and helps you achieve your long-term goals, please get in touch today so we can help you beat the EOFY deadline.
We work with a broad range of lenders and would love to present you with financing options that are well suited to your business’s needs now, and into the future.
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