However it’s not all positive news, as the Australian Securities and Investments Commission (ASIC) applies its tightening regulations over the financial and insurance industries, which affected the company’s add-on insurance commissions.
Managing director John McConnell
Managing director John McConnell says the full effects of the clamp-down are yet to be seen.
“Restricted and tightened lending have already happened, but legacy impacts are yet to be seen,” he says.
“We write sensible rates for people and we’re not firmly in the sights of regulators because we deal with customers who are quite savvy and we set achievable rates,” he adds.
The company is also yet to confirm the securing of its refrigerated logistics business to Chinese company HNA, saying it expects the finalise the sale by the end of June.
McConnell attributes the improving market in Western Australia as another jubilant windfall for the company.
Hunter Subaru
“It is particularly pleasing to note the broad levels of increased consumer and business confidence in the WA market,” he says.
McConnell also points out 2018 has started strong, with plenty of energy in the automotive sector.
“Some of the January-February market is quite good at the moment, lots of action, plenty of brands advertising,” he says.
While private consumers continue to deliver the better profits, there has been uptake from business buyers.
“We will enjoy slightly higher margins from private buyers than fleet buyers, but we’ve seen a strong recovery in business and rental markets than we’ve seen in private,” McConnell adds.
