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Newsnovated lease

What happens at the end of a novated lease

By February 20, 2023July 20th, 2023No Comments

Navigating the end of a Novated Lease can be confusing, but with Positive Salary Packaging, you can have peace of mind. Our expert team will guide you through the process, explaining your options and helping you make the best decision for your unique situation. Whether you choose to buy the vehicle, trade it in, or simply return it to the leasing company, we’ll ensure that the transition is as smooth as possible.

At the end of a Novated Lease, you have three options:

  1. Buy the vehicle: You can choose to purchase the vehicle from the leasing company at a predetermined price.
  2. Trade it in: You can trade in the vehicle for a new one, either through the leasing company or a dealership.
  3. Refinance it: If you like the vehicle you can extend the lease for another period of time eg 12 or 24 months and keep on enjoying the tax savings

It’s important to note that there may be additional costs associated with these options, such as changes in the running costs if refinanced. Our team will work with you to understand these costs and help you make the best decision for your budget and lifestyle.

Don’t go through the end of a Novated Lease alone. Let Positive guide you through the process and ensure that you make the best decision for your unique situation. Contact us today to learn more about how we can help you navigate the end of your Novated Lease.

Q: What happens when my Novated Lease ends, and what should I do?
A: When your Novated Lease ends, you have a few options to consider. You can refinance the same car, buy a new vehicle, pay out the residual, or dispose of the vehicle. At Positive, our vehicle leasing specialists can assist you in making a smart decision based on your financial position and needs.

Q: Do I refinance the same car?
A: Re-leasing your current car may seem like the easiest option, but it’s important to consider the potential increased maintenance costs that come with an older car. It may be more cost-effective to purchase a new vehicle.

Q: Do I buy a new vehicle?
A: Purchasing a new vehicle at the end of your Novated Lease period is a popular option for those whose needs have changed, or who simply want to drive something different. Positive can assist with the negotiation of the price, accessories, insurance, and roadside assistance for your new vehicle.

Q: Do I pay out the vehicle?
A: If you’re in a good financial position at the end of your lease, you can choose to pay out the residual and own the vehicle permanently. Positive can provide you with a payout figure and assist with the settlement process.

Talk to one of our novated lease specialists to find out more. Call today on 1300 946 527