You can choose to take your lease over one to five years. And at the end, you will be left with a lump sum known as a residual or a balloon payment owing on your car. You are liable for this amount, but at this point you can choose to get a new car, sell your car, or refinance the remaining amount.
If you change jobs, your new employer can take over your lease once a new deed of novation is issued and signed. If you lose your job, you will then be liable for your payments, and you will also have to pay the GST which you may have otherwise avoided.
If you decide at any point that you no longer want your novated lease, you can cancel the lease. You can sell the car to defray costs, or you can pay it off in one lump sum unless your contract states otherwise.
Start by asking your employer if they are willing to help you in your application for a novated lease. From there you will need to consider your budget and research cars. Once you’ve chosen your vehicle, you can get a few quotes and get the ball rolling with your chosen finance company. There will be documents and contracts for each party to sign, but the company who provides the lease will guide you through the process so that you can get your car as quickly as possible.
We offer a novated lease calculator on our website to make things easier for you. This way, you can quickly figure out how much you will pay, what your residual payment will be, and what you will save. These figures are based on the car you choose, the length of your lease, how much you drive and your salary.
A novated lease is a fantastic way to save thousands of dollars, thanks to tax breaks, and there are several ways they can be structured based on your needs and those of your employer.
For more advice or information, get in touch with Fingo.