Financing Green Assets

Thursday July 11, 2024

By Urban Moto Finance

Financing Green Assets

With the increased supply of vehicles to Australia it has enabled businesses to take the opportunity to upgrade assets that they held onto for longer than expected during Covid and post Covid era. It’s also clear businesses are motivated to upgrade their eligible vehicles and equipment to take advantage of the Federal Government’s Instant Asset Write-Off Scheme before 30 June..

Asset finance lenders have also seen strong growth in Electric Vehicles (EVs) financing, up 235 per cent in the last 12 months.

The jump is supported by lenders offering attractive product incentives and interest rate discounts off the standard rate for new and used electric or hydrogen powered cars, trucks, vans or buses, and also discounts on other qualifying assets including electric and hydrogen powered machinery, solar, wind and hydro-powered equipment and charging and storage equipment valued up to $250,000.

Industry data reinforces the EV trend, with combined sales of electric cars, SUVs, and light commercial vehicles tripling year-on-year to make up 7.4 per cent of all vehicles sold in the country. That figure was less than 2 per cent in FY22.

Electric vehicles were the fastest growing vehicle type last financial year and Australian businesses are set to play an outsized role in EV adoption across the country,.

“While more public sector investment in charging infrastructure is needed, particularly in regional locations, EV usage is growing strongly as the market matures and becomes more affordable. That’s helped by government concessions and an expanding choice of vehicles beyond luxury models.”

Business has also been turning more attention to protecting their businesses from cyber threats with a 43 per cent increase in businesses investing in replacing and upgrading computer equipment.

Largest new lending growth in last financial year by asset group:

  • Computer equipment + 43 per cent
  • Cars + 30 per cent
  • Heavy trucks (> 3.5T) +27 per cent
  • Trailers +26 per cent
  • Forklifts +17 per cent
  • Total Utility Vans + 15 per cent

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