My Novated Lease is about to end – What now?
Life is full of twists, turns and detours. So as you near the end of your novated lease, you might be wondering, “what direction do I go now?”
Thankfully, there are a few options, and as your novated lease draws to close a RemServ consultant will be in touch to discuss the direction that best suits your needs.
Get that new-car feeling
… and get it more often! With a RemServ novated lease you could swap your current car for a brand new one. You might be eyeing the latest model of your current car, or looking for something completely different.
Maybe life has changed dramatically since your lease began. Got a growing family? Kids left the nest and you need to downscale? Moved from country to city and need a more fuel-efficient vehicle?
Whatever your need, RemServ can help.
Extend your current lease
Love your existing wheels and not ready to let go? You have the option to extend your current lease – possibly at lower payments – so you can continue to enjoy all the convenience and potential tax benefits.
One benefit of extending your lease is that the longer the novation agreement, the lower the balloon (or residual) payment.
Pay the residual
You might like to keep the vehicle and record it as an asset. In this case, you’d pay the residual amount detailed in your contract.
It’s law that all novated leases require a residual amount to be paid the end of the finance agreement. (How much the balloon payment comes to depends on the lease duration and the value of the car at lease end.)
Trade it in
You could also trade in the car and, depending on the value of the car at the time of sale, receive a cash injection or pay any residual amount. If cash flow is tight, this amount can also be refinanced under a new loan.
Residual amounts need to be paid with post-tax dollars – meaning funds within your novated lease account cannot be put towards the residual.
Whatever you choose, as the end of your novated lease approaches a RemServ consultant will be in touch to talk you through your options and help you decide the best one for you.
Disclaimer: This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.