What Happens at the End of a Novated Lease?

At the end of your lease, there are multiple options to consider. Here’s what to expect if your novated lease is coming to an end:

If you have purchased a new car under a novated lease, there are four options to consider:

1. Start a new lease
2. Extend the existing lease (refinance the residual balance and hang onto the same car longer)
3. End novated lease (purchase the car outright and pay off the residual amount)
4. Sell the car, to use the proceeds of the sale to pay the residual value. If there is any money left over, this is yours to keep – tax-free.