Despite multiple issues facing the sector, it is incredibly encouraging to see the sales of tractors booming. The agricultural and horticultural sector is crucial to the Australian economy both in export trade and in feeding the population. The resilience of the sector in the face of extended drought, bush fires, floods, mice plagues and other setbacks engenders huge respect and admiration for operators and is well deserving of praise and further support. Jade Equipment Finance provides support to the sector with superior lending services to quickly access cheap loans to facilitate investment in new machinery to improve productivity and profitability for our customers.
So why this sudden boost in tractor sales? According to a report from the Tractor and Machinery Association of Australia, the sales of tractors for February 2021 are up 74% on the same period in 2020. An Association spokesperson is reported as commenting on the significance of these figures under the pressures being faced in supply chains. In particular, the impacts and delays caused in the overseas manufacturing facilities. A backlog of 2020 orders is apparently now flowing, which is great news for operators. More information.
The sales figures report sees sales increases across multiple machinery categories and notes the significance of Government tax measures for the boost. If you are still to take advantage of the tax measures on offer for this financial year, Jade can assist with lending services to expedite your tractor purchase.
Tractor Finance Options
For the purchase of tractors and other farming and agricultural machinery, Jade offers the full range of commercial finance facilities:-
- Equipment Chattel Mortgage or Equipment Loan
- Equipment Commercial Hire Purchase
- Machinery Rental
- Machinery Leasing
These loan types vary in a number of aspects including suitability for accounting methods, how GST is claimed, ownership of the machinery while the loan is being repaid which reflects the balance sheet and depreciation aspects, how and when a tax deduction can be claimed and the interest rate.
Interest rates vary across finance products, not just through Jade, but across the lending market. Chattel Mortgage and CHP typically offer the cheapest interest rate compared with Equipment Leasing and Rental. Though Jade does provide cheap interest rates on all our loans compared with others in the market. Refer to our Equipment Finance Interest Rates Comparison Chart to see the rates we are offering as of today and we advise speaking with your accountant as to which finance product will deliver the most significant benefits to your particular business structure.
We provide finance for all types of businesses including:-
- Family businesses
- SMEs and large corporate operations
- Owner operators and sole trader contractors
Options are available for low doc equipment loans, no docs and bad credit applications. With our accreditation with many non-bank lenders, we can offer greater loan flexibility when it comes to negotiating conditions and cheaper interest rates.
Taxation Measures Available
Chattel Mortgage has the cheapest interest rate and is also the most suitable form of tractor finance for business looking to take advantage of IAWO. A measure noted by the Tractor Association as being significant in the uptick in tractor sales figures.
IAWO and temporary full expensing are accelerated asset depreciation measures which allow equipment purchasers to realise a tax deduction for the full purchase price in the financial year of the acquisition rather than over time. Check eligibility at www.ato.gov.au
For some businesses, IAWO is available through to EOFY 2022 but if you want to claim the benefit in this financial year, contact Jade asap to commence sourcing you a tractor loan.
New Upgrades from John Deere
For that new tractor purchase, you may consider opting for the latest upgrades from John Deere. The company is releasing a new 9 Series range which include the wheeled 9R, the four track 9 RX and the two track 9 RT models. The improvements are also being introduced to the 8 Series and cover tech, comfort and power upgrades.
In the 9 Series, the company is releasing an all new PowerTech model which features a 13.6 litre diesel and larger models which are powered by a 15 litre Cummins power unit. Multiple improvements have been made to allow for the increased horsepower and ballast these tractors. They include changes to axle, undercarriage and front frame componentry.
The John Deere 8 Series has also received an update across several models with specialised options included. One of these is a system designed to assist operators to save time when they need to adjust the tyre pressure to suit different operations on their property.
Timing for these new releases - 9 Series orders can be placed now, in late March and orders will be available from mid this year. To place a pre-order, speak with Jade about a pre-approved tractor loan. These loans are sourced and approved prior to placing an order and provide confidence for operators to order machinery.
Pre-approved tractor loans are available across our loan portfolio.
To join the boom in tractor sales, contact us on 1300 000 003
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.