Hi All,
I just got a letter from Volkswagen advising that my Polo Novated Lease is nearing its completion. I am on 30 months lease and bought it on 2011. I do have 3 options here.
- Apply to finance a new vehicle. Call them and arrange a trade-in valuation.
- Pay out my contract with residual value of $10,490.09 (ex GST).
- Refinance my loan.
I am thinking of option 3. Not sure about how the option 1 works. Anyone would like to share their expertise/opinion?
Thanks.
Basically releasing the same vehicle? It works in exactly the same way as your previous leasing arrangement, except that your repayments will be less, as the value of the car is now $10 490.09 instead of whatever value they originally calculated it on, and at the end of the new leasing period the residual value will have decreased again.
If you're totally happy with the car, and have had no problems with it, after only 2.5 years it would seem (to me at least) to be the practical way to go, but if you're interested in a different vehicle, talk to your leasing company and find out the figures for this one and the alternative.
When our lease expired after 5 years, we released over a further 2 and are currently paying a total of $60 per week for a yearly allowance of 30 000km.