Finance For Feb Best Sellers

With low interest rates and IAWO still available for eligible business vehicle buyers, conditions are attractive for purchasing new vehicles. Reviewing the February 2021 motor vehicle sales statistics, it appears many businesses are taking advantage of the opportunities. The sales of light commercial vehicles which includes vans and utes outsold the passenger car types of wagons, sedans and hatchbacks in sales figures for the month. The figures show a 24% increase in light commercial vehicle sales over February 2020. SUVs still perform strongly in comparison to both these categories.

The strong and seemingly strengthening sales of SUVs appear to highlight the versatility of this vehicle for both recreational and business requirements. This a factor that many buyers have known for some time and with their popularity continuing to grow.

If you want a sign that the time is right to buy, then the stats along with our Jade Car Loans' cheap interest rates could be that sign.

Best Selling Business Vehicles

According to the FCAI (Federal Chamber of Automotive Industries) figures, the top 5 best-selling vehicles for February 2021 were the Toyota Hilux, Ford Ranger, Toyota RAV4, Toyota Land Cruiser and Toyota Corolla.

In the light commercial category, the Mitsubishi Triton slipped into third behind the HiLux and Ranger. If you require a passenger vehicle as your business car, the best-sellers in addition to the Corolla were the Hyundai i30, Kia Ceranto, Toyota Camry and Ford Mustang.

Finance Options for Business Buyers

Business buyers have several finance products to select from when purchasing a vehicle. Jade Car Loans offers a full portfolio of loan options so we have a finance option to suit different business set-ups, varying tax structures and the varying financial objectives of many businesses.

Our most popular finance options include:

Selecting the finance product is less about the vehicle and all about the business. While the vehicle being purchased must be primarily for use in the business to qualify as a business vehicle under ATO rulings, business finance products suit the purchase of all business vehicles.

Finance Selection Process

The choice of which finance facility will best meet your business requirements should include consideration of several factors. As most of these factors relate to accounting matters, a discussion with your accountant, tax agent or financial advisor is highly recommended.

These ‘deciding’ factors can best be seen when comparing the differences between the finance products. We’ll compare some of the key factors with the most popular types of finance: Commercial Car Leasing and Chattel Mortgage.

Vehicle Ownership and Balance Sheet: With Leasing, the lender retains ownership of the vehicle over the finance term. This means the vehicle is listed on their balance sheet not the balance sheet of the borrower. With Chattel Mortgage, the borrower takes on ownership once the sale and finance are settled. This means the vehicle is listed on their balance sheet.

Why does this matter? If a business is seeking to ‘improve the appearance of their balance sheet’ with fewer liabilities, then Leasing may be the more preferable. If a business is seeking to take advantage of the benefits on offer with Instant Asset Write-Off, then Chattel Mortgage would be the more appropriate type of finance. The ‘write-off’ element of IAWO relates to depreciating the vehicle as an asset. To do that, the asset must be entered into the business balance sheet.

Taxation Benefits: All business finance products, including a car loan for business, are designed to deliver a tax deduction benefit to the vehicle buyer. But in different ways. Following on from the balance sheet point, Chattel Mortgage delivers the tax benefit through depreciation. Whether via IAWO or standard ATO rulings, the vehicle is depreciated each year and that amount of depreciation is a tax deductible expense. The interest on repayments is also a tax deduction but not the remainder of the repayments. With Leasing, depreciation is not achievable, but the lease payments are considered a tax deduction.

GST Treatment: While less a factor that would sway a decision the way GST is treated with these finance products is a notable difference. No GST is charged on interest. With Leasing, GST is applied to and claimable on the remaining portion of monthly payments. With Chattel Mortgage all the GST on the purchase price can be claimed by eligible businesses, in the corresponding BAS period to the vehicle purchase.

Interest Rate: The interest rate on Chattel Mortgage is typically lower than for Leasing. Use our business car loan calculator to generate repayment estimates for both types of finance at the different interest rates we are currently offering.

Business Type: Leasing and Chattel Mortgage can suit all types of business structures including companies, sole traders, partnerships, SMEs and large corporates.

Sourcing Finance

If you’re keen to acquire a best-selling vehicle or any other make or model, we can assist with quick quotes and fast approval across our car finance portfolio for all vehicles for all businesses. Apply online or give us a call.

Call Jade Car Loans at 1300 000 003 for a finance quote for the vehicle of your choice and take advantage of the current attractive finance conditions 

DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.