As experts in novated leasing, the team at AANT Salary Packaging knows that the idea of residual payments can be overwhelming for some. However, it’s important to remember that the Australian Tax Office (ATO) sets the guidelines for residual values on all vehicle and asset leases in Australia.
This means that a novated lease must have a residual value at the end of the lease, as determined by the ATO, and GST will be charged on any remaining amount owing on the vehicle.
One of the main concerns people have about residual payments is that the car may not be worth the calculated value at the end of the lease term.
While this is a valid concern, it can be minimized by doing your research and selecting a popular, established brand with a history of high resale values. Additionally, it’s important to consider your daily commute, location, and service availability when purchasing a vehicle to ensure it will retain its value over time.
Another crucial aspect to consider when purchasing a vehicle is the purchase price.
Overpaying for a car can ultimately increase your residual value, so it’s essential to negotiate the best possible purchase price. At AANT Salary Packaging, we help numerous clients each year negotiate the best possible purchase price for their vehicles.
Ultimately, the key to managing residual payments and ensuring affordability is to take a holistic approach to vehicle ownership. This includes thinking about the end goal of your vehicle purchase, getting feedback from the market, and working with a trusted partner like AANT Salary Packaging to manage the process.
If you’re considering a novated lease or have any questions about residual payments, don’t hesitate to contact AANT Salary Packaging today on 1300 946 527 to discuss your future vehicle plan.
