Market Snapshot, 1st February 2023

Market Snapshot, 1st February 2023

Funder appetite is still strong for both new and used equipment, however navigating the compliance requirements for new funders can be challenging. Given the complexity of the compliance environment,  it needs to be considered when allowing time for finance to be approved and settlement to occur.

Stock levels across all asset classes continue to be challenging for all major brands both domestically and those global brands importing from overseas.

Whilst shipping costs have reduced, time frames are still longer than pre Covid. This means clients need to consider potential delays when they are planning replacement assets for vehicles, plant and equipment or IT over a 6-12 months ordering process.

Rates have started to stabilise for equipment finance as we tend to be 6 months ahead of the RBA formal rate rises. As a fixed rate product, many of our funders have already factored in the next 2-3 rate rises, and in some cases wholesale rates over 60 months have dropped slightly.

The temporary full expensing of assets is finishing on June 30th this year. Given the delays around delivery we recommend you place orders as soon as possible if you want to take advantage of this deduction.

Please reach out your broker  or call 1300 731 131 if you would like to chat about your requirements.