The best-selling motor vehicle figures for February this year are in and many business owners will no doubt be eyeing the data for a new ute or van. But the motor vehicle market at the moment is in strange territory. Order-taking is outstripping supply for many manufacturers. Dealers are taking orders while waiting on shipments to actually make the sales. A situation which makes interpreting monthly car sales figures for best selling utes and vans a bit of a quandary for buyers. Figures can represent which dealers actually received shipments that month and could deliver their outstanding orders rather than the actual popularity of an individual make or model.
While the sales figures might leave buyers confused with decision-making, when it comes to financing the purchase there is little doubt what the overwhelming choice will be - selecting cheap motor vehicle finance at a fixed, low interest rate.
Cost of living pressures, increasing fuel prices, shortages in supplies and materials and a possible interest rate rise this year individually present important considerations for business owners looking to take on finance. When all these factors occur at the same time, such as the case at the moment, the need for greater attentiveness when it comes to finance is critical.
For those considering the purchase of a new work vehicle, we update on what makes and models sold best in February and how to secure cheap fixed interest rate motor vehicle finance with suitable terms to purchase best selling utes and vans as reported in the February 2022 data.
Best-Selling Work Vehicles
The February 2022 motor vehicle sales data reveals that once again it is the Toyota HiLux holding top spot. Toyota also held onto top spot as the leading brand. In the overall top vehicle sales results (which includes passenger cars as well as utes etc) several utes made an appearance. HiLux was first, Mitsubishi Triton in third followed by Ford Ranger and in seventh place was the Isuzu D-MAX. The surprise for many was the Triton overtaking the Ranger.
Breaking down the specific categories we have:-
- Utes 4x2: HiLux (4x2), D-MAX, Triton
- Utes 4x4: HiLux (4x4), Triton, Ranger
- Vans under 2.5 tonne: Renault Kangoo, VW Caddy, Peugeot Partner
- Vans 2.5 to 3.5 tonne: HiAce, LDV G10, Hyundai Staria
The light commercial vehicle market continues to perform well, with the FCAI reported this segment was up 12.3% compared with the corresponding 2021 month. Signs perhaps that the demand for online shopping and home deliveries is being sustained despite the COVID-19 crisis phase appearing to be somewhat halted.
Assessing Cost Factor of Business Vehicle Finance
To add real value to the business, the purchase of a new ute or van needs to be done with cost-effective finance. While the key objective in sourcing the cheapest finance is naturally to look for the cheapest interest rate, there is more to consider. There are other factors that can also determine the overall cost or benefit to an individual business.
Primarily, these are the type of finance and the lender. Both of these can make a big difference to the cost-effectiveness of the loan.
Different finance products offer varying tax and other benefits.
The selection of business vehicle finance types include:
- Chattel Mortgage
- Leasing
- Cheap Car Hire Purchase
Deciding which is going to work best with your business set-up will depend on financial objectives, accounting method and other issues. Discuss these with your business accountant as they are best-placed to know the implications of each loan type for your specific operation.
The choice of lender is also critical. Lenders vary in the interest rates they offer on different loan types and in their flexibility to negotiate on finance terms and loan conditions. All important to overall cost-effectiveness of the purchase.
Not achieving the preferred finance structure may result in a cost in some way to a business. For example, not being offered the loan term desired can result in having to pay more in repayments, which can put pressure on cash flow which can in turn lead to issues for the business. For businesses requiring no doc and Low Doc Car finance this can be even more significant.
To ensure all options are on the table and covered, Jade Car Loans is accredited with many motor vehicle finance lenders – banks, finance companies and non-bank lenders. This provides us with the ability to source and negotiate the best finance offer for our customers.
Locked and Low Rate Finance
The interest rate is of course the major contributor to the cost motor vehicle finance. With interest rates looking set to rise at some time in the possibly near future, locking in fixed rate vehicle finance at the current low rates should be a priority. It ensures the business will realise the benefits of lower repayments and hence lower outgoings (compared with a higher or variable rate) for all the years of the finance term.
We provide a fixed interest rate and better business car loan interest rates across our complete motor vehicle finance product selection. These products and rates cover all types of new commercial and work vehicles including best selling utes and trucks.
To further assist our customers secure their vehicle in the current limited stock climate, we can provide pre-approved finance.
To lock in low, fixed interest rate motor vehicle finance on a best seller, contact Jade Car Loans 1300 000 003
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.
