Asset finance opportunities for brokers

Surging demand for electric vehicles

With 36 car brands now offering electric vehicles, greater availability combined with tax incentives have driven an uptick in demand for EVs. In support, CommBank offers a 1% discount off the standard rate for qualifying fully electric vehicles and supporting infrastructure such as chargers and a 0.7% discount for hybrid vehicles.^{^}  

Fears that have held buyers back – such as range anxiety – are resolving as the number of charging stations increase. From 356 in 2022, there are now more than 1,100 stations offering over 3,500 plugs. What’s more, the Australian Government is investing $2.4 million to install a further 250 kerbside chargers across more than 60 local government areas in Victoria, NSW and SA.³

The switch to EVs is part of a broader uptake of green assets that CommBank is financing, including other forms of electrification and sustainable energy production such as commercial rooftop solar and batteries.

Three market developments that brokers need to know

More businesses are planning to purchase cars and equipment in the next six to 12 months versus the next three to six months.⁴

Cashflow pressures are spiking interest in used assets. Among businesses in the market to buy heavy trucks, 45% want used vehicles – increasing to 74% for those seeking to buy light trucks. For buyers of construction and earthmoving equipment, 62% plan to buy used equipment. And 72% of agri equipment buyers are looking for used assets. Brokers will need to collaborate with lenders who are able to offer lending options for both new and used vehicles and machinery.⁵

We’re seeing competition in the asset finance market intensify, with four in 10 asset finance borrowers considering switching their asset finance provider⁶. This creates opportunity for brokers to capture more business by offering clients valued advice and time-saving service. Indeed, 88% of broker clients say that saving time is the number one benefit offered by their broker. And with the average business working with almost three brokers to meet their asset finance needs, brokers will also need to work harder and sharpen their customer value proposition to defend their existing client base.

Talk to CommBank 

CommBank’s asset finance solutions have taken out first place for Innovation and Product Satisfaction according to East & Partners⁸. We’ve also recently launched a new Redbook Inspect platform to make inspections and valuations easier.

We’re advocates for the important role brokers play and are focused on delivering tailored asset finance solutions for you and your clients. Speak to your CommBank Business Development Executive.