Exploring your options for the end of your car lease
If you’re nearing the end of your novated lease term, you may be wondering what happens next. You’ve enjoyed all the benefits of your novated lease, which have included the tax savings, the convenient budgeting, and that new car feeling. But now, it’s decision time, and you need to understand what to do as you approach the end of your lease term. Don’t stress; there are plenty of choices available to you! A consultant from AANT Salary Packaging will be in touch as we approach your due date to help guide you through the process and determine the best option for you.
These are your options to consider at the end of your lease:
Upgrade your vehicle – Trade-In or sell your existing vehicle
One of the most popular options at the end of a novated lease term is to upgrade your vehicle. This means trading in or selling privately your current vehicle for a brand new one and starting a new lease. The excitement of driving a shiny new car is hard to beat! AANT Salary Packaging makes the process easy by helping you find the perfect car and handling the setup of your new novated lease. It is important to note that whatever value the vehicle is traded in for or sold privately above the Residual Value is yours, tax-free.
Extend your current package for another term – Re-Lease your existing residual
If you’ve been happy with your current vehicle and would like to continue to enjoy the tax and GST savings that come with a novated lease, you can extend your existing lease, potentially at lower payments. This way, you can continue to enjoy the
convenience and tax benefits of novated leasing.
Payout the remaining residual -own the vehicle outright
If you’re not interested in upgrading your vehicle or extending your lease, you can choose to pay out the remaining residual. This means paying the agreed-upon Residual Value amount to purchase the vehicle outright and own it free and clear. Keep in mind that the residual must be paid in post-tax dollars.
No matter what option you choose, it’s important to carefully consider your financial situation and your future goals before deciding.
At AANT Salary Packaging, we can help you navigate the options and choose the best path forward for your needs. With careful planning, we can ensure a smooth transition from your novated lease term to the next phase of vehicle ownership.
AANT Salary Packaging will help you navigate them all and find the best option for your budget, lifestyle, and needs.
