The fourth quarter for 2021 continued the positive momentum across most markets to make 2021 a stellar year. There were solid results across road transport, motor vehicles, earthmoving and mining equipment.
Highlights from the fourth quarter included some very successful auctions for road transport and earthmoving across our Brisbane, Roma and Newcastle offices.
The quarter in short:
Overall, there were 41,404 new trucks sold in 2021, reflecting a 20.1% increase on 2020 sales. Just short by 224, 2021 sales almost reached 2018’s record-setting tally.
With numerous brands breaking record sales, it was Isuzu that led 2021 sales overall with 10,175 new transport sales across all segments. This beats Isuzu’s last record-hitting number in 2018 by 148. Due to supply issues and plant closures, Volvo’s heavy-duty trucks sales dropped from 1,740 in 2020 to 1,683 in 2021
|UD Trucks||777||Up 34.2%|
Other European brands such as Mercedes Benz and Scania enhanced their sales results from last year with both truck makers topping 1,000 heavy-duty truck sales for the year.
Top 10 Ranked New Heavy-Duty Trucks
|UD Trucks||464||Up 2.9%|
Isuzu came out on top of the medium duty market with 3,067 new medium truck sales and their market share increased to 41.5%. The second highest medium truck seller was Hino with 2,322 units sold. While Hino increased on its 2020 sales this year, the brand suffered a market share fall of over 2%.
Top 10 Ranked Medium-Duty Truck Brands
|UD Trucks||166||Up 44.4%|
|Dennis Eagle||5||Up 400.0%|
As with the medium-duty truck sales, Isuzu also lead the light-duty truck sales with 2,247 sales and a 39% market share. Closely following Isuzu in the light-truck sales was Hino. Overall, the three Japanese brands, Isuzu, Hino and Fuso dominated the light-duty sector representing 81.4% of sales.
The supply of second-hand heavy-duty, medium-duty and light-duty trucks at auction has been subdued because of the supply chain issues in the new market. End users are holding onto trucks for longer due to the limited stock available in the new market. The new heavy-duty sector has been impacted the most of all the truck segments.
On top of the well-known global supply chain issues reducing the turnover of fleet assets, there were a variety of additional factors that saw reduced volumes into the secondary market during the quarter four of 2021. These included the government stimulus programs coupled with extended moratoriums on enforcement action from lenders and the ATO which together resulted in much fewer distressed asset sales over the year.
Demand has remained extraordinarily strong for assets in the secondary market, which coupled with the low supply has resulted in outstanding results over the quarter and the overall 2021 calendar year.
Medium and light-duty trucks are selling well at auction, with little stock available. Our WA team sold a 2012 Fuso Fighter for $30,100 representing 90% of the retail price.
Due to the shortage of trucks even older, non-mobile trucks are also selling well with a 2008 Kenworth T908 Prime recently selling for $185,100 in QLD, reflecting full retail value.
The end of 2021 saw one of the best auctions seen in Newcastle for several years. This auction was primarily based around a construction company selling off their transport fleet. Up for auction was a fleet of late model Mercedes prime movers. The jewels in the crown were two 2021 Mercedes Benz Actros 2658 (580 Horsepower) prime movers. One of these had 60,000km on the clock and the other was showing 117,000km. They made $290k and $284k respectively.
The above results were remarkably close to new prices. The Mercedes dealer who had orignally sold these trucks to the construction company did not expect new models to arrive for another 10 to 12 months at a minimum, which was a best-case scenario and only in extremely limited stock.
The extremely strong results on the 2021 plated trucks then pushed up the demand for the older trucks. One of the highlights of this auction was a 2011 Kenworth K200 prime mover. Despite its age, the enquiries on this truck in the lead up to the auction was phenomenal. This was then reflected in its sale result $142k achieving 100% of its retail price. The sought-after Kenworth brand showed its class in this instance.
The trailer market is showing strong demand for low loaders, side tippers, curtainsiders, Pantechs, and refrigerated Pantechs. The team in QLD recently sold a 2008 Maxitrans ST3 Refrigerated Pantech for $30,000, reflecting 90% of the retail value. Meanwhile, the VIC team sold a 2017 ATM Low Loader Trailer for $152,537, representing 84% of the retail value.
|2019 Western Star 4864 FXB Prime Mover||556,805 km/h||$197,100||90%||QLD|
|2008 Kenworth T908 Prime Mover||231,910 km/h||$185,100||100%||QLD|
|2015 Kenworth K200 Prime Mover||568,923 km/h||$181,100||100%||QLD|
|2017 Mitsubishi FN 600 Refrigerated Pantech||235,898 km/h||$122,500||100%||QLD|
|2017 Kenworth T409 SAR & 2018 BTE Quin Tipper||322,765 km/h||$275,100||100%||QLD|
|2018 Freightliner Coronado||73,675 km/h||$156,100||94%||WA|
|2013 Scania R620||708,217 km/h||$90,000||82%||WA|
|2012 Fuso Fighter||213,515 km/h||$30,100||90%||WA|
|2006 Daewoo School Bus||560,241 km/h||$60,100||110%||WA|
|2006 Daewoo School Bus||560,241 km/h||$60,100||110%||WA|
|2017 Kenworth K200 6x4 Prime Mover DC319058||376,617 km/h||$216,512||70%||VIC|
|2014 Mitsubishi Fuso Fighter 1024 DC319072||182,153 km/h||$40,364||68%||VIC|
|2015 Mercedes Benz with 2020 ACM280 EWP DC319028||4,558 km/h||$190,400||63%||VIC|
|2017 Isuzu FSR700 4x2 Curtainsider DC319156||259,504 km/h||$71,372||80%||VIC|
|2010 Isuzu FRR500 DC319136||55,469 km/h||$50,156||63%||VIC|
|2016 Mercedes Bemz Actros 2663 DC319198||951,078 km/h||$106,624||89%||VIC|
|2021 Mercedes Benz Actros 2658 Prime Mover||59,424 km/h||$290,000||100%||NSW|
|2021 Mercedes Benz Actros 2658 Prime Mover||117,094 km/h||$284,000||100%||NSW|
|2019 Mercedes Benz Actros 2658 Prime Mover||361,989 km/h||$225,000||100%||NSW|
|2018 Freightliner Argosy Prime Mover||347,630 km/h||$160,000||100%||NSW|
|2011 Kenworth K200 Prime Mover||1,022,814 km/h||$142,000||100%||NSW|
Profitability in the new earthmoving sector has advanced in the 2021 fourth quarter. This is reflected in the Cat 2021 fourth quarter report, which conveyed a 23% increase from the fourth quarter of 2020. Diving into the Asia pacific region specifically it saw a more modest 9% sales and revenue increase. The main gains were in the Resource (up 29%), Energy and Transport (up 18%) industries. The constructions industry in the Asia Pacific region had a drop of 12% over the quarter primarily due to the lower sales in China which dominates this area.
Gaining an understanding of the numbers for Australia is difficult however Caterpillar has noted that the drop in construction by China has been softened by other areas being stable in the region. i.e. Australia. Anecdotal feedback from local dealers has suggested demand is strong for new equipment with production and supply being the main issue as to why sales have dropped.
Numerous external factors had a positive effect on the new earthmoving market in Australia for the 2021 fourth quarter including Government initiatives; rising infrastructure development and construction activity; the need for latest technology in construction machinery; and the introduction of autonomous equipment in the market.
Good quality, low hour earthmoving equipment continues to sell extremely well at auction. With supply chain issues continuing to cause delays in delivery times for new machinery, the second-hand market reaps the benefits. Infrastructure spending as part of post-COVID stimulus programs being rolledout around the country, and the instant asset write-off has also impacted the second-hand earthmoving market significantly. This was evident in the recent sale of a 2012 Caterpillar 140M Motor Grader for $240,400, representing 100% of market value.
As the Major Transport Infrastructure Projects graph shows, Australia is experiencing a surge in infrastructure investment. This plays a crucial role in the prosperity of the earthmoving market. The graph portrays a peak in infrastructure next year, a plateau for a little while and then descension.
Smaller earthmoving equipment such as mini excavators and skid steer loaders are also selling extremely well and are in high demand. A 2015 JCB 260T Skid Steer Loader sold for $65,000, reflecting 90% of market value.
Older, higher hour machines, particularly excavators are not selling as well as they were earlier in 2021. A 2018 Hyundai Robex Excavator DC46212-1 was sold this quarter for 52,006 reflecting only 65% of market value.
|2013 Caterpillar 725 Articulated Water Truck||5,944 km/h||$247,000||90%||QLD|
|2012 Komatsu WA480-6 Wheel Loader||12,769 km/h||$101,100||90%||QLD|
|2013 John Deere 870G Motor Grader||7,423 km/h||$264,000||110%||QLD|
|2012 Caterpillar 140M Motor Grader||9,489 hkm/h||$240,400||100%||QLD|
|2012 Caterpillar 432F Backhoe Loader||6,293 km/h||$71,100||90%||QLD|
|2015 JCB 260T Skid Steer Loader||1,352 km/h||$65,000||90%||QLD|
|2009 Caterpillar 12M Grader||8,858 km/h||$187,000||98%||NSW|
|2009 Caterpillar 12M Grader||11,448 km/h||$165,000||95%||NSW|
|2008 Caterpillar 12M Grader (no front blade)||10,000 km/h||$165,000||100%||NSW|
|2016 Bobcat S450 Skid Steer Loader||3,227 km/h||$35,250||88%||NSW|
Australian agriculture is in very good shape with seasonal conditions and strong commodity prices driving the market. Supply chain issues are also a factor, in some instances agricultural equipment is suffering lead times of 9 – 12 months.
Agricultural Machinery sales soared in 2021 in line with favourable seasonal conditions across much of Australia. The growth in new tractor sales continued, while harvester sales dominated the latter quarter of the year. Tractor and Machinery Association of Australia executive director Gary Northover said more than 1,000 harvesters have been sold, a figure not seen since 2011.
Tractor sales have exceeded 18,000 units for 2021 following another stellar month in December with sales across the nation up 2% on the same month last year. This has resulted in a full year rise of 25% above last year.
Sales have been strong in all states fuelled by the excellent harvest season underway supported by the Government’s various company tax incentive programs. Beginning in NSW sales were up 4% for the month and are now 39% ahead for the year. Queensland was again strong up 3% and finished up 23% full year whilst Victoria was down 2% in December but was up 14% up for the year.
Sales in Western Australia recorded a drop of 1% for the month following a frantic harvest season, to be 33% ahead for the year. South Australia had a 5% lift for the month and was up 16% full year, Tasmania bounced again and finished 22% up for the year whilst sales into the Northern Territory enjoyed a strong year to be 21% up.
Much has been written about the challenges surrounding supply, not just relating to Agricultural machines. Industry forecasts for 2022 indicate another solid year ahead supported by very healthy commodities markets.
The second-hand and auction markets have also been strong with Tractors, Combine Harvesters and other agricultural equipment being in high demand.
The Federal Government’s Temporary Full Expensing program which essentially replaces the Instant Asset Write Off scheme will continue to support demand. The good seasonal conditions, and historically low interest rates are also driving the market.
Quarter four has seen high demand but very little agricultural stock coming through the auction platform. An ex-council 2016 New Holland T5.95 4WD Tractor with 5,772 hours was put to auction selling to an end-user for $45,804, 75% of retail value. In QLD we had two Case Quadtrac 550 Articulated Crawler Tractor go up for sales. The 2018 model sold for $261,000 and the 2017 model sold for $200,000 both achieving 90% of their retail value. Highlighting the demand for general use tractors we had a 2014 John Deere 6105M Tractor with 7,136 hrs on the clock sell for $36,600 achieving 100% of its retail value.
|2018 Case Quadtrac 550 Articulated Crawler Tractor||2,535 km/hr||$261,000||90%||QLD|
|2017 Case Quadtrac 550 Articulated Crawler Tractor||3,567 km/hr||$200,000||90%||QLD|
|Bell Feller Ultra Buncher||8,379 km/hr||$53,100||90%||QLD|
|2014 John Deere 6105M Tractor||7,136 km/hr||$36,600||100%||QLD|
|2019 SL 120 Tractor||178 km/hr||$20,400||90%||QLD|
In the face of the pandemic and incessant delivery issues caused by part shortages, new car registrations in Australia increased 2020’s new car sales by 14.5%, finishing 2021 with 1,049,831 registrations. This result is in spite of buyers continuously facing significant delivery delays.
The highest selling brand for the fourth quarter of 2021 and for the 25th year in a row was Toyota, ending the year with four models in the top 10 selling brands. With 223,642 sales, the brand increased 2020’s results by 9.2% and delivered a 21.3% market share.
The highest selling model was the Toyota Hilux Ute. The 4×4 dual cab increased last year’s sales by 16.9% with 52,801 sold by the end of the fourth quarter. Finishing closely in second place was the Ford Ranger with 50,279 sales and a 22.7% increase. Other high-ranking Toyota models included the RAV4 which ranked third with 35,751 sales and the Corolla, finishing in fourth place with 28,768.
The second highest selling car brand was Mazda. The automaker sold 101,119 new vehicles, giving an 18.1% increase on last year’s sales. The CX-5 was the only Mazda model in the top ten, coming in seventh with a tally of 24,968 and a 13.6% increase compared to 2020 sales.
Hyundai capped off a mixed year in third place with 72,872 (+12.4%) units, helped along by the success of the i30 hatch and sedan range that captured 25,575 (+23.3%) sales to land in fifth place and be one of only two passenger cars to make the top 10.
Ford had a bumper year, increasing its overall sales by 19.8% for a 2021 haul of 71,380 units. The second-placed Ranger’s sales make up just over 70% of Ford’s total tally. The next best-selling Ford is the Ranger-based Everest on 8359 sales, some 42,000 less than Ranger. The Ranger’s result is especially impressive given the new-generation model is set to land early in 2022.
Chinese carmaker MG Motor nabbed a year-end top 10 spot for the first time, landing in ninth with 39,025 sales, an impressive 156% increase on 2020.
MG’s success came across its model line, with strong results for the baby MG3 light hatch (13,774, +92.4%), while the ZS (18,423) edged out the Cerato to place 10th, making it the country’s most popular small SUV thanks to a 235% sales increase.
Battery electric vehicle sales continued to increase last year by 191.1%, but the segment still only represents 0.5% of the total market.
The secondary market demand is still very strong with new car sales stalling as a result of ongoing supply shortages. The fourth quarter of 2021 showed a high demand for quality, late model low kilometre motor vehicles at auction.
New car stock arrivals from overseas have continued to be low throughout the fourth quarter and aren’t expected to pick up soon. Lead times for most dealers are passing 3 months with some dealers continuing to report a 12 month lead time on new car arrivals. One Victorian dealer forecasts that there will continue to be a shortage in the volume of second-hand vehicles through to 2023.
Wholesale buyers are still reporting low stock volumes, this supply issue is continuing to impact the secondary car market prices through auction. Along with repossessions being very limited in October and November, with a small spike early December before bank moratoriums commenced.
The most popular vehicles at auction with both dealers and end user buyers have been dual cab utilities, and SUV/Wagons. To this point in November a 2018 Ford Ranger Raptor sold for $66,993, 92% of retail value. Many buyers are still electing to buy second-hand rather than wait for delivery of new stock. Auction results are still strong which was affirmed in December 2021 when our Queensland team sold a 2017 Tesla Model X for $145,000, showing 43,969 kms, 100% of retail.
|2017 Holden Trailblazer||53,661 km/hr||$43,555||90%||QLD|
|2014 Toyota Landcruiser Dual Cab||87,122 km/hr||$65,200||90%||QLD|
|2020 Toyota Landcruiser Dual Cab||35,142 km/hr||$83,800||100%||QLD|
|2018 BMW M4||28,327 km/hr||$88,300||100%||QLD|
|2020 Isuzu D-Max Dual Cab||16,720 km/hr||$49,800||100%||QLD|
|2018 Toyota Hiace LWB||48,825 km/hr||$40,200||90%||QLD|
|2020 Mercedes Benz GLS 400D||14,759 km/hr||$149,000||100%||QLD|
|2017 Ford Mustang GT||40,017 km/hr||$47,600||90%||WA|
|2019 Volkswagen Golf R||59,161 km/hr||$47,400||92%||WA|
|Toyota Hilux 2019 work mate c/c||20,120 km/hr||$23,700||85%||NSW|
|509091 Range Rover Autobiograhy||18,879 km/hr||$200,000||90%||NSW|
|509257 2011 toyota hiace slwb||250,969 km/hr||$22,101||110%||NSW|
Classic and collectible cars continue to sell extremely well and break records. A booming market, investor interest in classic and collectible cars as a genuine investment opportunity, or collectors seeking rare and hard to find cars have driven the market over the past 18 months. Ford and Holden classics from the 1960’s, 1970’s and 1980’s are proving the most popular with collectors and investors. The last of the Holden V8’s manufactured in Australia in 2017 are also proving popular. To this point, we had a 2017 HSV GTS R Maloo sold in our QLD auction for $205,000 achieving 100% of its retail price.
The market for Q Plates (Heritage Plates) in Queensland has seen unprecedented growth throughout 2021. Q Plates have traditionally lagged Victorian & NSW Heritage plates in value, however, whilst Victorian & NSW plates still attract a premium, Q Plates are catching up. The market has recognised Q Plates are undervalued as compared to Victorian & NSW Heritage plates, and Q Plates have been keenly sought after over the past 12 months. In early 2021 three digit Q Plates were selling in the high teens, by the end of 2021 they were making up to $145,000.
|1967 Morris Mini MKII||25145 km/hr||$25,100||100%||QLD|
|2017 HSV GTS R Maloo||2,835 km/hr||$205,000||100%||QLD|
|2010 HSV Clubsport R8||16,942 km/hr||$73,000||90%||QLD|
|1977 XC Ford Falcon 500 Hardtop (Salvage)||192,618 km/hr||$21,000||100%||QLD|
This quarter we were able to successfully assist BDO in the matter of Pacific Air Express Australia Pty Ltd (Receivers & Managers Appointed) in selling the 1985 Boeing 757 Freighter aircraft as part of the receivership. Whilst the exact sale price cannot be revealed for confidentiality reasons, the aircraft sold at around our expectations.
The sale campaign encompassed a highly targeted worldwide marketing campaign to relevant companies and individuals to maximise exposure and interest. The campaign was very well received in the market by industry participants and international there was significant qualified interest and multiple offers received.