Network Finance - Latest News and Blog Posts #Vehicle Finance

Third rate cut delivered this year as RBA trims cash rate to 3.60%

Tue, 12 Aug 2025 15:53:35 +1000

After last month’s unexpected hold, the RBA this month went with market expectations and delivered its third cash rate cut in 2025 in an attempt to ease cost-of-living pressures on Australian families.

RBA Governor Michele Bullock said in a statement that the Board unanimously decided to cut the cash rate by 25 basis points as underlying inflation continued to decline back towards the midpoint of the 2-3% target range.

How much could you now save on your mortgage repayments?

Unless you’re on a fixed-rate mortgage, hopefully your bank will soon follow the RBA’s lead and decrease the interest rate on your variable home loan.

For an owner-occupier with a 25-year loan of $500,000 paying principal and interest, this month’s 25 basis point rate cut means your monthly repayments could decrease by about $76 a month.

That would put $912 a year back into your household budget.

If you have a $750,000 loan, your monthly repayments will likely decrease by about $114 a month – or $1368 per year.

Meanwhile, a $1 million loan could decrease by about $152 a month – or $1824 a year.

This all assumes that your lender automatically passes on the full 25 basis point cut to your home loan.

Another thing to consider is that not all lenders automatically reduce variable home loan repayment amounts in line with rate cuts.

Some lenders simply maintain your repayment amount at the old level. It’s just that more of your money goes towards paying off the principal (rather than the interest) each month. But you can ask them to reduce your repayments in line with their cuts.

To find out what your lender is doing with your loan, get in touch with us in a few days once the dust has settled.

Still feeling stress from your mortgage?

Even with this latest rate cut, many Australian families are still grappling with living costs and interest rates that are higher than when they first took out their home loan.

If that includes you, now could be a good time to check in with us for a home loan health check.

You might be able to improve your situation by either renegotiating with your current lender, refinancing to another lender, or through debt consolidation.

Whatever your situation, we’re here to help you explore your options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How Smart Equipment Finance Helped a Regional Contractor Win Bigger Jobs

Tue, 29 Jul 2025 22:36:34 +1000

The Client: From Operator to Owner

Starting as a dozer operator for a leading civil construction company, our client made the leap into business ownership two years ago — purchasing his first machine to hire back as a subcontractor. With two dozers already working on job sites and demand showing no signs of slowing down, he needed to act fast to add a third machine to his fleet.

The Finance Challenge

The client had his eyes on a low-hour 2019 Caterpillar D6T Dozer priced at $468,000. But there were hurdles:

He needed to preserve working capital.
His current lender had maxed out their exposure to him.
Historical financials.
The machine needed to be on-site within two weeks.

The Solution: Strategic Lending That Worked

We sourced funding from a non-major lender with a strong appetite for yellow goods and established clients in civil construction. Here’s what made the difference:

Presented a complete application, including accountant-prepared financials, a work source letter, and cash flow forecasts.
Negotiated a deal with only a 10% deposit upfront and GST deferred to month 4 — helping preserve cash.
Achieved fast approval (within 48 hours) and settled in just 5 days.

The Result

With financing in place:

The client secured the dozer before a critical project deadline.
Monthly repayments came in at approx. $9,950 (ex. GST).
The additional machine enabled an increase in net profit of ~$13,000/month.

Takeaway for Business Owners

This case highlights how understanding lender appetite and presenting a well-supported application can be the key to unlocking growth — even when traditional financials aren’t perfect.

If you're in civil construction or any capital-heavy industry, the right finance partner can help you take the next big step — without risking your cash flow.

Need help navigating equipment finance?

We’ve got the lender network, expertise, and turnaround time to help you seize your next opportunity.

Book a chat with us today

From Setback to Success: How One Transport Business Turned High-Cost Finance into Sustainable Growth

Tue, 29 Jul 2025 18:41:09 +1000

Add to that a final fallback offer from another lender with a crushing $15k/month repayment—and it looked like the business might stall before it truly got moving.

But that’s where we came in.

The Challenge: A Financing Wall

Most lenders saw risk. We saw potential.

With multiple funding declines and no standard pathway available, the client needed a creative solution fast—or risk being locked into a hire-to-buy agreement that would cripple their cash flow.

Our Approach: Leverage, Structure, and Strategy

At Network Finance, we don’t just look at numbers—we look at the whole picture. In this case, we worked closely with the client to:

✅ Leverage an existing truck and trailer as additional security

✅ Structure a full-doc loan that aligned with their business needs

✅ Secure funding through a trusted lender, ScotPac

The result? A $190K loan over 5 years with repayments of just $5K/month—well below the $15K/month they were previously facing. That’s what we call sustainable financing.

The Outcome: $2M+ in Funded Equipment (and Counting)

This wasn't a one-and-done deal—it was the start of a partnership.

In the two years since that first loan, we’ve helped this client fund over $2 million in equipment, all without requiring asset backing. With the right finance strategy in place, their business has scaled with confidence and clarity.

What This Means for You

Even if your business has had setbacks…

Even if you’ve been declined before…

Even if traditional lenders won’t give you the time of day…

There’s often a better way forward. It just takes the right partner to help you find it.

If you're in the transport industry—or any industry—and need smarter finance that actually works for your business, we're here to help.

Let’s talk about your next move.

Book A Free Consultation

Heads up business owners: the asset write-off deadline is looming!

Thu, 11 May 2023 15:19:59 +1000

That’s because the temporary full expensing scheme is set to expire on 30 June 2023.

It will be superseded by a much less generous scheme, known as the instant asset write-off, so if your business could do with expensive new equipment, an asset or commercial vehicle, you might want to act quick!

What is temporary full expensing?

Temporary full expensing is similar to the popular instant asset write-off scheme, but with an expanded scope.

Originally a stimulus measure to address the effects of the COVID-19 pandemic, the scheme allows businesses to make significant asset investments.

Businesses can have eligible depreciating assets immediately written off in full with no cost limit.

Yep, that’s right … no cost limit on eligible assets.

Applied for with your tax return, the scheme can reduce the amount of tax you have to pay for the financial year – which means you can reinvest the funds back into your business sooner.

Trucks, coffee machines, excavators, and vehicles are just some examples of assets eligible under the scheme.⁣⁣

But to take advantage of it, the asset must be installed and ready to roll by 30 June 2023.

So you’ll have to act quickly!

Asset eligibility

To be eligible for temporary full expensing, the depreciating asset you purchase for your business must be:

– new or second-hand (if it’s a second-hand asset, your aggregated turnover must be below $50 million);

– first held by you at or after 7.30pm AEDT on 6 October 2020;

– first used, or installed ready for use, by you for a taxable purpose (such as a business purpose) by 30 June 2023; and

– used principally in Australia.

What if I miss the deadline?

If you miss out on the 30 June 2023 deadline, or your order doesn’t arrive in time, hope may not be lost.

You may still be able to take advantage of the instant asset write-off.

This scheme will allow for eligible purchases of up to $20,000 to be written off by 30 June 2024, as recently unveiled in the 2023 Federal Budget.

However, as you might have noted, the available write-off amount is significantly lower than the temporary full expensing scheme that’s coming to an end.

Need a hand with a business loan?

When purchasing an asset with the intention of using this scheme, it’s crucial to select a finance option that’s suitable for your business.

And that’s where we can help out. We can present you with financing options that are well-suited to your business’s needs now, and into the future.

So if you’d like help obtaining finance that’s gentle on your cash flow, and helps you achieve your long-term goals, please get in touch ASAP so we can help you beat the EOFY deadline.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Decoding Credit Scores

Fri, 31 Mar 2023 00:40:38 +1000

A Guide to Understanding Your Credit Score and Improving Your Financial Health

Your credit score is a crucial factor in determining your ability to obtain credit or loans, and it can greatly impact your financial well-being. However, many are not aware of what a credit score is, how it is calculated, or how to improve it. This infographic aims to decode credit scores in Australia and provide tips for improving your financial health.

By understanding your credit score and taking steps to improve it, you can enhance your financial health and increase your chances of obtaining credit or loans when you need them. Use this infographic as a guide to improve your credit score and take control of your financial future.

The tax on luxury cars just got a little cheaper

Thu, 14 Jul 2022 09:16:36 +1000

Have you heard about the luxury car tax (LCT) threshold?

Basically, if you buy an imported car with a GST-inclusive value that’s above the LCT thresholds, the tax man slugs you with an extra 33% tax on the exceeded amount (minus the GST component).

But the good news is the LCT thresholds have just been given a pretty decent boost – the third one in a row.

⁣

From July 1, the threshold has been boosted by $5,257 to $84,916 for fuel-efficient vehicles, and by $2,697 to $71,849 for other regular vehicles (all inc. GST).

According to the ATO, a fuel-efficient vehicle is one with fuel consumption that doesn’t exceed 7.0L/100km on the combined cycle.

How does the LCT threshold work?

Ok, so this threshold boost isn’t just good for people wanting to buy a vehicle under the threshold.

It’ll also make cars above the threshold more affordable, too.

Let us explain.

Say you want to buy a Tesla Model 3 Performance, which has a GST-inclusive price of $93,325.

Under last financial year’s LCT threshold of $79,659 for fuel-efficient vehicles, you would have paid a LCT tax of $4,100 (exceeds LCT threshold by $13,666, subtract GST component paid, multiply by 33% = $4,100 LCT).

But now that the LCT threshold for fuel-efficient vehicles has been boosted to $84,916, you would only pay LCT of $2522 ($8,409 – GST component paid x 33% = $2522).

And if you wanted to avoid paying the LCT altogether, you could instead purchase a Model 3 Long Range, which has a GST-inclusive price of $81,725.

That means this financial year, it’s below the LCT threshold, but last year you would have been slugged with a LCT of $620.

Get in touch today to explore your finance options

If you’ve got your eye on a particular vehicle – luxury or not – and you’d like to explore some finance options to help purchase it, give us a call today.

We can help you find the right loan for your circumstances, depending on whether the vehicle is for business, personal use, or a mix of both!

EOFY alert! Financial year-end is fast approaching

Thu, 30 Jun 2022 12:08:54 +1000

There’s nothing like an impending deadline to get you moving.

And with June 30 now just over a month away (didn’t that sneak up on us!), time is running out for your business to take advantage of the federal government’s temporary full expensing scheme this financial year.

What is temporary full expensing?

Temporary full expensing is basically an expanded version of the popular instant asset write-off scheme.

It allows businesses that are keen to invest in their future to immediately write off the full value of any eligible depreciable asset purchased, at any cost.

This helps with your cash flow as it allows you to reinvest funds back into your business sooner.

Trucks, coffee machines, excavators, and vehicles are just some examples of assets eligible under the scheme.⁣⁣

There is just one small catch though …

The asset must be installed and ready to use by June 30 in order to be eligible for this financial year.

But rest assured that even if you do order the asset, and then miss the June 30 deadline because it doesn’t arrive in time, you can still write it off next financial year because the scheme is set to run until 30 June 2023.

Asset eligibility

To be eligible for temporary full expensing, the depreciating asset you purchase for your business must be:

– new or second-hand (if it’s a second-hand asset, your aggregated turnover must be below $50 million);

– first held by you at or after 7.30pm AEDT on 6 October 2020;

– first used, or installed ready for use, by you for a taxable purpose (such as a business purpose) by 30 June 2023; and

– used principally in Australia.

Obtaining finance that’s right for your business

Being able to immediately write off assets is one thing, but if you don’t have access to the right kind of finance to purchase them now, the scheme won’t be much use to you this financial year.

So if you’d like help obtaining finance to make the most of temporary full expensing ahead of the impending EOFY deadline, get in touch with us today.

We can help you with financing options that are well suited to your business’s needs now, and into the future.

What the!? Tesla came third on the new vehicles sold list?

Thu, 30 Jun 2022 11:53:27 +1000

You might have seen an article by us a few weeks back about the sales of electric vehicles (EVs) almost tripling in the past year – from 6,900 in 2020 to 20,665 in 2021.

Great growth for sure, but when you consider that 101,233 vehicles were sold across the country in March alone, you wouldn’t expect any one EV model to threaten the big players such as Toyota, Mazda or Mitsubishi anytime soon.

Well, we got quite a shock when we looked at the Federal Chamber of Automotive Industries’ (FCAI) March sales figures leaderboard and saw that the Tesla Model 3 had rocketed up to third place.

Apparently more had sold than the Mazda CX-5 (fifth place), the Mitsubishi Triton (fourth), and were outsold only by the Toyota HiLux (first) and Toyota RAV4 (second).

But all is not what it appears

Turns out that Tesla’s third placing is accompanied by an asterisk.

FCAI chief executive Tony Weber explains that this is the first month that EV brands Tesla and Polestar have been included in monthly sales figure reports.

And as such, “when interpreting the data for March 2022, care should be taken as the Tesla data represents the company sales for the first three months of 2022”.

Still, that’s a fairly promising sign for EV enthusiasts out there – just three months of sales put them in a podium position with 4417 vehicles sold.

It wasn’t the only bit of promising news for EV fans this week, either.

Hyundai’s release of 109 electric SUVs – the Ioniq 5 – sold out in less than 7 minutes. In fact, 18,000 Australians registered their interest.

Meanwhile, Honda and General Motors have announced that they’ll be teaming up to build EVs that will sell for less than US$30,000 – potentially removing the all-important cost barrier.

Interested in buying an EV?

Did you know some lenders are offering lower rates on electric vehicles?

Macquarie, for example, recently sent out an email promoting comparison rates on electric cars to homeowners from 2.99% per annum (based on a loan of $30,000 and a term of five years).

That’s down from anywhere between 6.48% and 7.15% for a new internal combustion engine vehicle (depending on the loan-to-value ratio).

And as EVs become more popular in Australia, it’s a safe bet that we’ll see more and more lenders get their elbows out to offer competitive rates in this space.

So if you’re considering making the jump to an EV, get in touch and we can help you crunch the numbers on whether an electric vehicle loan is the right fit for you.

How much have car prices gone up since the pandemic began?

Thu, 30 Jun 2022 11:43:41 +1000

How much have car prices gone up since the pandemic began?

Most of you would have noticed that car prices have gone up significantly over the past two years. But how much have they gone up exactly? Let’s take a look.

You’re not imagining things – both new and used vehicle prices have spiked over the past two years (not to mention, house prices, petrol, groceries – everything, it seems, except wages).

Reasons for car price hikes include supply issues stemming from a semiconductor shortage, increases in cost for raw materials, complications around shipping and parts procurement, factory shutdowns and other pandemic-related issues.

But just how much have these disruptions sent car prices up? And what options are available if you need help financing your next purchase?

Let’s take a look.

New car price increases

The price of new cars has gone up as much as 25% since before the pandemic, according to an ABC article quoting website pricemycar.com.au.

A detailed analysis of 1100 models by goauto.com.au meanwhile calculates that as of March 2022, the average price of a new car is up 7.6% since pre-pandemic times.

However, it varies a lot from manufacturer to manufacturer, and even model to model.

For example, some models such as the Toyota Yaris have gone up by as much as 37% ($7290 extra).

Here’s how much some of the more prestigious manufacturing brands have increased prices:

Land Rover: 9.01%, Audi: 8.59%, BMW: 8.42%, Jaguar: 5.33%, Lexus: 3.36%.

And here’s how much some of the more mainstream manufacturers have increased prices:

Volkswagen: 9.83%, Hyundai: 9.06%, Jeep: 8.91%, Nissan: 8.59%, Toyota: 7.70%, Fiat: 7.21%, Mitsubishi: 6.80%, Renault: 6.60%, Subaru: 6.00%, Citroen: 5.93%, Mazda: 5.30%, Ford: 2.73%.

Used cars

It appears that because of the wait times for new cars (due to supply constraints), used car prices have gone up even more.

Used cars have risen 50%, Datium Insight’s price index in this ABC article shows.

Meanwhile, car valuation expert Redbook.com.au estimates a 25 to 35% increase in recent years.

How to finance your next purchase

Been wondering about how your neighbour bought that fancy new car?

Well, there’s a better than even chance they took out finance to purchase it, with Mozo research showing that 52% of car buyers took out a loan to buy a vehicle in the past decade, for an average loan size of $25,000.⁣⁣⁣

And when it comes to timeframes to pay that loan back, while most car loan providers offer a maximum term of up to 7 years, the average loan is usually repaid in the 2-3 year range.

It’s also worth mentioning that if you’re purchasing the vehicle for your business, the federal government’s temporary full expensing scheme can help your business’s cash flow ahead of the financial year deadline of June 30.

So if you’d like to find out more about financing your next vehicle purchase – whether it be for your household or business – get in touch with us today.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Thought about buying an EV? Interest rates for them are dropping

Thu, 30 Jun 2022 11:33:11 +1000

According to the latest Electric Vehicle Council data, sales of plug-in EVs almost tripled in the past year – from 6,900 in 2020 to 20,665 in 2021.

That means EVs now account for 1.95% market share of new vehicles.

Now, that might not sound like a lot. But the federal government projects it to rise to 8% by 2025 and 30% by 2030.

And we’re seeing major lenders start to jostle for pole position in the EV market too.

Macquarie, for example, sent an email out this week promoting comparison rates on electric cars to homeowners from 2.99% p.a. (based on a loan of $30,000 and a term of five years).

“We’re proud to be the first Australian banking group to offer a specialised electric car-buying service that can help you make the transition to an electric car,” the Macquarie email reads.

So how does that rate compare to a normal car loan?

Ok, so let’s say you were also thinking of going with Macquarie to buy a standard vehicle with an internal combustion engine (ICE).

You’re looking at a comparison rate of anywhere between 6.48% and 7.15% for a new ICE vehicle, depending on the loan-to-value ratio.

That’s quite a big difference from the new EV rates.

What’s driving the increasing uptake of EVs?

Increasing model availability, decreasing vehicle cost, and growing awareness of the economic and environmental benefits of EVs are changing the way people think about their transport options, according to the Electric Vehicle Council.

Here’s a guide to what you can currently buy in Australia. One of the cheapest options currently available is the MG ZS EV, which is around $48,990.

Hyundai and Nissan also have options in the $53,000 to $55,000 range.

It’s also worth noting that governments are making big moves in this area too, with some state governments offering $3,000 rebates.

And earlier this month, the New South Wales government (for example) announced plans to build more than 1,000 fast-charging stations for EVs over four years.

Get in touch with us to purchase your next vehicle

As electric vehicles become more popular in Australia, it’s a safe bet that we’ll see more and more lenders get their elbows out to offer competitive rates in this space.

So if you’re thinking of buying a vehicle to last you the next 5 to 10 years, and are considering making the jump to an EV, get in touch and we can help you crunch the numbers on whether an electric vehicle loan is the right fit for you.

And if it’s not quite right just yet, well, we can help you out with a good ol’ fashioned ICE vehicle loan instead!

Network Finance - Latest News and Blog Posts #Vehicle Finance

Third rate cut delivered this year as RBA trims cash rate to 3.60%

Borrowers around the country have been delivered a sunnier financial outlook this month after the Reserve Bank of Australia (RBA) today trimmed the cash rate by another 25 basis points to 3.60%. How much could your monthly mortgage repayments decrease?

How much could you now save on your mortgage repayments?

Still feeling stress from your mortgage?

How Smart Equipment Finance Helped a Regional Contractor Win Bigger Jobs

From Setback to Success: How One Transport Business Turned High-Cost Finance into Sustainable Growth

Heads up business owners: the asset write-off deadline is looming!

Business owners wanting to buy a vehicle, asset or important piece of equipment and immediately write off the full cost have just over a month to act.

What is temporary full expensing?

Asset eligibility

What if I miss the deadline?

Need a hand with a business loan?

Decoding Credit Scores

The tax on luxury cars just got a little cheaper

Got your eye on a luxury car that’ll make your mates jealous? Or perhaps something that’s a little more fuel-efficient and environmentally friendly? Today we’ll run you through a new tax change that could help you buy something a little more la-de-da.

How does the LCT threshold work?

Get in touch today to explore your finance options

EOFY alert! Financial year-end is fast approaching

Small business owners wanting to buy a vehicle, asset or important piece of equipment and immediately write off the cost have just over a month to act this financial year.

What is temporary full expensing?

Asset eligibility

Obtaining finance that’s right for your business

What the!? Tesla came third on the new vehicles sold list?

Car enthusiasts around the nation got a bit of a shock this week when the Tesla Model 3 rocketed up the sales leaderboard to place third for all new vehicles sold in March. How did that happen?

But all is not what it appears

Interested in buying an EV?

How much have car prices gone up since the pandemic began?

Most of you would have noticed that car prices have gone up significantly over the past two years. But how much have they gone up exactly? Let’s take a look.

How much have car prices gone up since the pandemic began?

Thought about buying an EV? Interest rates for them are dropping

It wasn’t long ago that the idea of buying an electric vehicle (EV) seemed like a bit of futuristic science-fiction. But with interest rates on EV loans recently dropping to under 3%, going electric is now more in the realms of an everyday, mundane, household budget decision.

So how does that rate compare to a normal car loan?

What’s driving the increasing uptake of EVs?

Get in touch with us to purchase your next vehicle