Best time in a decade to buy new vehicles


30 percent tax deduction and low interest rates creates "window of opportunity" for companies to purchase new vehicles

The 30 percent federal government allowance tax deduction along with a low interest rates has created a "window of opportunity" not seen in over a decade for companies looking to purchase new vehicles.

This is according to Crown Equipment Marketing General Manager Craig Kenchington who says businesses should snap up new equipment before the incentive finishes on June 30.

"The 30 percent investment allowance is only one of a number of factors that have converged at this time," Kenchington says.

"Interest rates are at their lowest point for nearly four decades, and companies can still apply the tax deduction for depreciation on the full purchase of [such things as] a lift truck.

"This actually means that with depreciation combined with the investment allowance, tax deductions can be in the vicinity of 50 percent of the purchase in the first year".

Companies that take advantage of the opportunity could go into the new financial year with lower costs and new equipment, which according to Kenchington brings both equipment reliability and financial certainty to fleet operators and management.

The investment allowance applies to small businesses that spend a minimum of $1000 and large businesses that spend a minimum of $10 000 on new equipment.

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