Winter 2015

Talk Around Town

In late 2014, we sent out an email marketing bulletin that in part was ‘Nostradamus’ in its predictions.

It did however cover off on the following items;

  • Interest Rate cuts to (possibly) 1.75% during 2015 – RBA in May cut rates to 2.0%, a record low for Australia – Further reductions will depend on Budget and consumer confidence
  • House prices to continue to grow on the back of low interest rates
  • Stock Market to see gains during 2015, especially second half.
It may not be rocket science, but the trends so far are showing that most of our early predictions for 2015 are ringing true.

The Federal Budget presented no great surprises; it did however include an immediate right off for small businesses buying equipment up to $20,000.  * There is however some qualifying criteria involved in this process, please read our article Federal Budget 2015 for full details before you act on this initiative.

Would you knock back an Extra $100 a week…?

There is no doubt we are at or very close to the bottom of the interest rate cycle in Australia, most good judges are now suggesting that the next movement, whenever that may be, will be up.

Now is the time to assess exactly where your business is at.

  • Is my income stable?
  • Do I understand my fixed costs?
  • Can I trim any costs from the business and increase my profit?

You need to be constantly reviewing all areas of the business, from telecommunication costs, data, fuel, tyres – review every line of expenditure that you are paying out.

Now what about your truck loan?

  • If you purchased your truck over 4 years ago, chances are you’re paying interest on your truck loan of circa. 7.25% p.a.
  • After 4 years, you have also maximised your depreciation claim from an expenditure item

Take advantage of the low interest rate cycle we currently find ourselves in and lock in a low rate now by upgrading your existing vehicle and replacing it with a new truck.

  • Why not simply do the exercise now?
  • What would a new truck cost me today?
  • What is my used truck worth to sell/trade-in?
  • What effect would buying a new truck have on my monthly loan repayments?

You might be surprised to find that you could be able to update to a new truck and be around $100.00 /week better off. Lower your monthly repayments and take advantage of the warranty and lower running costs that come with operating a new vehicle.

Do the exercise today – you may be surprised with the results.

Give your Transport Finance manager a call today to run through the numbers.

Brisbane Truck Show – 14-17th May 2015

The bi-annual Brisbane Truck Show has come and gone for another 2 years, held from the 14-17th May 2015 at the Brisbane Convention Centre. This event is the preeminent Truck Show in Australia and one that simply must be seen to be believed.

Held over 3 floors of the Convention Centre – it attracts new truck model releases, the latest trailer initiatives, innovations in ancillary equipment and IT Software to support and make running a fleet easier.

Transport Finance was again well represented at this year’s event, with John, Andrea, David and Darren all attending.

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Federal Budget 2015

Small Business Incentives

The recent Federal Budget has offered up a little incentive for small business, thus defined as being a company that turns over less that $2.0 million annually.

If you fit in to this category, then your annual rate of Tax has been lowered by 1.5%, down from 30% to 28.5%.

This category of business also receives an immediate Tax Break benefit that can be utilised ahead of the end of financial year, namely June 30 2015.

Capital Purchases up to $20,000 (read $19,999) will receive an instant tax write off in this financial year, as well as the following financial years.

This means new and used commercial cars/utes/vans, computer equipment, office furniture, IT/Smart phones, copiers, etc…any depreciable item used for business.

There is no limit on the number of purchasers that a business can make – as long as they are all under the $19,999 limit.

Please don’t wait until the last 2 weeks of June to consider these purchases, talk to your finance manager immediately, so that we can set up a pre-approved limit to accommodate such purchases so that your finance is ready and waiting.

Please take care as the ATO will be checking and prosecuting any company that attempts to ‘split’ invoices for goods over $20,000 into multiple invoices under the $20,000 threshold.

 

Special Offer – New Iveco Daily Van

Iveco has just launched its New 2015 Daily Van range, which includes their first automatic offering.

To coincide with this launch, we have access to some very low Interest Rates;

0 – 36 Months                                    1.75% p.a.

37 – 48 Months                                  2.75% p.a.

48 – 60 Months                                  3.75% p.a.

* Please note that the offer is subject to Documentation and Dealer Fees which can be included in the financed amount.

The above offer is for Sales Orders placed prior to June 30th, 2015 and Vans delivered prior to end of July 2015.

 

New Iveco 2

Insurance Premium Funding

Your Insurance renewal is coming due shortly, please keep in the back of your minds that the cost of annual insurance is also something that we can arrange funding on.

It is a very simple process whereby we have access to 3-4 Banks/Lenders that will provide Insurance Premium Funding and allow you to ‘spread’ the on-off cost of this across either 9-10 monthly instalments.

This is a cost effective way of managing your cashflow for the business and any interest costs, which are minimal can be offset when you do your tax and claimed as a business expense.

Call your finance manager now to find out more and provide sufficient time to get the funding lines approved before the due date.

If you do receive a quote, call us as we can save you money on finance for your Insurance Premium Funding.