Commercial Truck Financing Figures Show Steady Growth
According to the Equipment Leasing and Finance Association’s August stats, new commercial equipment financed in the United States totaled $9.2-billion. That figure is up 3% from the same time frame a year ago. The Monthly Leasing and Finance Index also indicated that volume was down 2% from the previous month. In July 2019 the commercial equipment financed total was at $9.4-billion. Conversely, the year-to-date cumulative new business volume was up 3%.
What this translates to mean is that the US economy is showing sustained, but moderate growth, in many different business sectors. The ELFA tracks economic activity in 25 companies that represent a cross-section of the entire $1-trillion equipment finance sector.
Other Findings From The August Report
Receivables over 30 days were sitting at 2%, a figure that remained unchanged from the July total but up from the 1.9% that was recorded in August 2018. Charge-offs were up slightly from the previous month – from 0.37% to 0.42% and were up from the 0.29% noted the previous year.
As for credit approvals, the August report totaled 76.6% which was up from July’s 75.7%. Equipment finance companies showed a dip in total headcount from a year ago with 2.1%.
The Monthly Confidence Index, which is formulated by the Equipment Leasing & Finance Foundation, fell to 54.7 for September from 58.9 in August.
Association President Sees Positive Activity
ELFA President and CEO Ralph Petta stated that new business volume reported by member-respondents “grew modestly in August, as the US economy continues to perform well.”
He added, “A variety of economic indicators all point to a continued pattern of sustained, moderate growth in many sectors within the equipment finance industry.”
Merchants Bank Equipment Finance president Richard E. Barry echoes that sentiment by stating the August monthly and year-to-date figures “demonstrate a consistent increase” compared to 2018 stats.
“Credit activity continues to be actively monitored as month-to-month charge offs rose slightly,” he said.
Barry added that the August Index “points to the continued desire of business owners to invest in efficient and productive capital equipment solutions for their enterprises.”
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