Australian businesses continue to kick back into gear, with new asset finance figures from the Commonwealth Bank revealing a 36 per cent increase in business car financing compared with the same time last year.
CBA’s latest asset financing figures, broken down by vehicle type, have seen an increase over the past year:
- Light commercials – 187 per cent
- Utes and vans – 85 per cent
- Heavy trucks – 50 per cent
- New motor vehicles including passenger and SUVs – 36 per cent
The CBA financing data aligns to recently released VFACTS industry trends, which show vehicle registrations for business use have increased 24 per cent since January 2021, and 48 per cent from April to May 2021.
CBA’s Executive General Manager, Business Lending, Clare Morgan, said: “Despite existing challenges around supply, both the CBA financing data and industry trends point to continued positive signs from the automotive industry. This seems to be especially the case when it comes to business registrations of light commercials, utes and vans. 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.
“We’ve seen the Federal Government’s instant asset write-off scheme support many of our customers in the past year. We expect this demand to continue following the recent budget announcement, and we welcome the extension of the scheme until mid-2023 as a major boost for Australian businesses.
“While positive to see this growth, we’re mindful that many businesses are still doing it tough. Any businesses that need support, especially those in Victoria are encouraged to call 1800 314 695 or reach out to their Relationship Manager,” Ms Morgan said.