After experiencing one of the biggest downturns in history, Australia’s automotive industry has bounced back with a second consecutive month of growth all but assured.
A report released by Equifax notes considerable growth across several sectors during May and into June, singling out the automotive industry as the biggest beneficiary.
Nodifi Head of Customer Experience Tim Wells, says initial predictions of lengthy pain for dealerships could be off the mark based on current trends.
“June is notoriously a busy month in the asset finance space, with dealerships offering significant reductions in a bid to clear stock ahead of the new financial year.”
“However given the economic downturn, we weren’t anticipating the levels of growth we are currently seeing.”
“From a Nodifi perspective, we have recorded our biggest settlement month in history – even more impressive given there are still a few days left to run.”
“What we’re seeing is a rapid increase in consumer confidence which is a promising sign leading into the new financial year.”
The Equifax report goes on to state that business loans and asset finance products are running similar volumes to those seen pre-COVID-19.
“The report supports the commercial asset finance trends we’re seeing at Nodifi – the increase of the asset write-off threshold to $150,000 back in March, along with Australia’s positive handling of COVID-19, looks to have instilled confidence among SMEs,” says Tim.
Treasurer Josh Frydenberg recently announced the extension of the $150,000 asset write-off threshold until 31 December 2020, previously set to conclude on June 30.