Spring 2014

Talk around Town

The biggest discussion point over recent weeks has been the burning question, “Have we reached the bottom of the interest rate cycle or will the Reserve Bank cut interest rates one more time?”

The big banks have now dropped their five year fixed interest rate Home Loans to 4.9% p.a. and the standard variable home loan is now being advertised below 4.8% p.a. Given that Bank’s very rarely get their pricing models wrong in so much as they normally try to ‘win’ – a five year fixed term under 5% is significant.

So will the Reserve Bank look to have one more interest rate reduction this year?

I think it will depend on the unemployment figures, residential house pricing, new build starts and the inflation figures – look to the RBA’s November Melbourne Cup board meeting if there is to be a further reduction.

It comes in the same week (ending 1/8/2014) that the ANZ-Roy Morgan survey shows consumer confidence is at high levels not seen for the previous seven months, rebounding from the slump in April and May. (Read article below Consumers get their groove back)

Most States are seeing property prices continue to grow, albeit at low levels in the recent quarter but none the less demonstrating a year on year increase in housing prices.

So what does this all mean, it would appear that the overall economy is still ticking over quite nicely, despite the circus that we are seeing in Canberra with new policies being held up constantly in the new Senate. In other words, the people of this great country are getting on with business in spite of the Government of the day.

Welcome & Good-bye

Please welcome Rochelle White who joined the company in July. Rochelle and her husband, originally from Christchurch in New Zealand had moved to Melbourne some time ago to set up home.

If you call the office and hear a new voice, make sure you say, hi and make her feel welcome.

After 4 years we say good-bye to Kelly Berger who has decided to pursue a business opportunity for herself and start a Book-Keeping business. We thank her for efforts over the years and wish her well with her new endeavours.

Transport Finance – CNHI Capital

We are pleased to advise that we have signed on with a new lender for our panel – CNHI Capital.

CNHI Capital takes our current lending panel to 16 Banks & Finance Companies.

CNHI Capital is the new finance division supporting Iveco Trucks in Australia. CNHI Capital also supports Case and New Holland products in addition to the Iveco Truck and Bus divisions.

We have operated Iveco Finance as a separate trading entity since 2000, so after 14 years we are retiring this entity and from here on in, Transport Finance P/L will be the main trading name. As a direct result of signing on with CNHI Capital, we have made slight changes to our business cards and these will now reflect the close working relationship we have with CNHI Capital and as such will carry their logo on the bottom right of our new cards.

Consumers get their groove back

(AAP – 29/7/14)
Consumers have got their groove back; having shaken off their woes about the federal government’s planned budget cuts.
The latest weekly ANZ-Roy Morgan survey shows consumer confidence levels at a seven-month high, rebounding from a slump in April and May sparked by news of spending cuts.
Confidence levels rose 2.4 per cent in the past week, adding to recent gains and giving more weight to the theory that the recent falls were related to temporary shock from the budget.
ANZ chief economist Warren Hogan said confidence levels were now back in line with business confidence.
“Consumer confidence is now back to pre-budget levels and consistent with moderate growth in consumption and economic activity,” he said in a statement on Tuesday.
“The good news is that the headline impact of the budget appears to be temporary and the more enduring features of the economy, such as rising share and house prices, job creation and a stable world economy are now driving consumer attitudes to spending and finances.”
Economists believe that with consumers feeling more confident, retail sales should pick up.
Meanwhile, a separate survey found that business confidence also appeared to be improving, with the number of new company start-ups rising more than a fifth in the June quarter.
The Dun and Bradstreet survey also found that nearly two thirds of respondents were more positive about the economy than a year ago.
Dun and Bradstreet chief executive Gareth Jones said low borrowing costs were helping improve business confidence.
“Confidence is critical for entrepreneurship and these numbers on business start-ups indicate there is a building mood of positivity about opportunities in the economy,” he said.
Business failures – those that seek legal relief from creditors or cease operations without paying creditors in full – fell 11 per cent in the June quarter but were up nine per cent for the year.
More than half of the business failures recorded in the June quarter were in the services and the manufacturing sectors.

Operating Lease

If you run a number of trucks in your business or are looking at taking on a new contract, if you have never considered operating Lease as a vehicle to support your growth then I think it is time to reassess and ask us to get you some pricing so you can compare all of your options.

What is Operating Lease?

An Operating Lease is essentially a monthly rental for the use of the truck/trailers over a time specified by you i.e. 5 Years and for the nominated maximum usage of the truck/trailer during that time i.e. 1,000,000 klm (can be hours)

At the end of the term and subject to return conditions, you simply hand back the truck/trailer without any liability or end position exposure for the disposal of the assets.

We can also incorporate either Scheduled Servicing costs or full maintenance pricing in to the one monthly rental payment – this allows you to know day one, exactly how much the unit will cost you for the nominated lease period – a great idea if you are tendering for new work and want to nail down fixed costs for the life of the lease.

So if you haven’t previously considered an operating Lease or are about to tender for a new contract, ask one of the Transport Finance staff to arrange an operating Lease quote – you could be pleasantly surprised.

Annual Conference in Sydney

Transport Finance Group had there annual conference in Sydney in late July. With the team flown in from Queensland and Victoria to meet up with our NSW employees, it provides a great opportunity once a year, to meet up, discuss issues that affect us all and relax and enjoy each others company.

Part of the day was spent meeting the key personnel from our new lender, CNHI Capital and learning about their products, their appetite to buy business and exactly what they will look for in terms of approvals for New and Used Iveco trucks.

Before we flew home to our respective States, most of the team enjoyed a Jet boat ride around Sydney harbour – great fun and a good way to take in the views of the harbour. Highly recommended if you are ever in Sydney and have a spare hour to fill in.