CBA: truck and LCV loans surge

The Commonwealth Bank has announced a massive increase in business vehicle financing compared to the same period last year.

The bank says the surging number of loans for LCVs, trucks and new vehicles in general is further proof of the ongoing stimulus provided by the Government’s Instant Asset Write-off Scheme, which was increased and extended in March 2020 as the pandemic threw economies around the globe into turmoil.

The CBA says it has seen finance for light commercials increase by 187 per cent, while finance for heavy trucks has increased by 50 per cent. The bank also says finance for utes and vans is up 85 per cent, while finance for the broader automotive market, including passenger cars and SUVs, is up 36 per cent.

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“Despite existing challenges around supply, both the CBA financing data and industry trends point to continued positive signs from the automotive industry,” said CBA’s Executive General Manager, Business Lending, Clare Morgan.

“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.”