Automated second-hand asset finance verifier Verimoto has reported a period of “unprecedented growth” as social distancing restrictions ease and consumers have begun to cautiously spend once again.
While second-hand asset financing requests fell by 35% in April 2020, they have since boomed by 77% according to Verimoto data, meaning the second-hand market is now performing better than it was pre-COVID.
According to Peter Hewett, Verimoto CEO, the “V-shaped recovery” is primarily being driven by government stimulus and increasingly savvy shoppers.
“It comes as no surprise second-hand assets purchases are increasing. Businesses are using this time to invest in their futures but are doing so in a cost-conscious manner, preferring second-hand assets to new,” explained Hewett.
“Businesses have been quick to take advantage of Government stimulus, including the instant asset write-off, purchasing equipment, trucks and machinery to improve their operations.
“As we approach the end of the financial year, we expect more businesses will seek financing for equipment, machinery and trucks, particularly as cashflows remain tight.”
Additionally, second-hand car transactions are also charting a dramatic recovery – bouncing back from a decline of 40% in April to grow by 40% in May and 25% so far in June.
“According to the latest data from Melbourne Institute, consumer sentiment is back to pre-COVID levels, meaning there is now greater willingness to spend. However, with fears of a second wave, it makes sense Australians are cost-conscious and opting to buy second-hand,” said Hewett.
“We’ve recently seen a significant spike in second-hand financing requests and know brokers will be working late trying to get as many deals done before the end of the financial year.
“To support this rush, we are going to extend our hours of operation to 10 pm until the 30th June, helping brokers to serve their customers better.”