Truck sales boom as buyers rush to take advantage of instant asset write-off scheme
While demand for trucks was strong throughout the year, buyers were scrambling to take advantage of the scheme ahead of the 31 December cut off, according to the head of leading online machinery marketplace, Machines4U.com.au.
Machines4U.com.au CEO Steve Krebs said the pandemic had not slowed down truck sales.
"At the height of the pandemic, demand for trucks grew by 142% from April to June, with the transport and logistics industry providing a vital lifeline for many Australians throughout 2020," Mr Krebs said.
"With cut off for the instant asset write off scheme less than two weeks away, we are continuing to see an upswing in demand across the trucking and transport sector, as buyers seek to take advantage of the incentive to boost their fleets."
Mr Krebs said while a slight decline in demand was expected in 2021 once the government incentive was wound back, demand for trucks would continue to grow.
"The choke on export and imports due to COVID-19 will mean trucking, freight and logistics services will continue to be required at higher volumes throughout Australia.
"Slower production rates in international factories, including those in the USA and Europe, combined delays in shipping and strict bio security and health protocols on imports mean that new trucks are likely to be in short supply," Mr Krebs said.
"With continued shipping delays caused by COVID-19, equipment shortages are now being felt across the market, including within the trucking industry meaning new trucks are likely to be in short supply for some time to come," Mr Krebs said.