What Is Residual?
All Novated Leasing arrangements include a ‘Residual Value’ component which is a lump sum (inc of GST) that you need to pay the financier at the end of the lease term which then finalises the lease. Motorpac sets the residual values for Novated Leases according to the Australian Taxation Office minimum requirements.
What Happens If I Leave My Employer During The Lease Term?
Should you leave your employer, your employer’s novation agreement with Lease & Asset Finance concludes. A full reconciliation of the running costs, up to the lease end date will be carried out, with any surplus or shortfall being settled in your pay by your employer. Pro-Rata FBT will also be settled prior to departing your employer.
What Happens Next?
Subject to your new employer’s agreement, arrange for a new novation agreement with them, or continue to pay your monthly lease rentals, under your finance lease agreement (vehicle running costs will not be included in this payment), or Payout the Lease and make an offer to purchase the vehicle.
What Happens At The End Of The Lease?
A leasing consultant will contact you three months before lease end to help finalise your lease. Your options may include;
- Extend the lease subject to conditions, or
- Pay the residual value and terminate the lease