Novated Lease Final Payout Amount

LKitscha on 06/09/2022 - 15:56
Last edited 06/09/2022 - 18:02 by 1 other user

I am wondering if anyone with experience in paying out of a Novated vehicle lease knows, can the Leasing company increase the final payout figure if the car is worth substantially more than the final payout figure? Due to the current post Covid car market.

The exact wording in the Maturity Letter I was sent is as follows

"Make an offer to purchase the goods for an amount not less than the residual value. GST of 10% will be payable on the agreed price."

The car is on a 3 year lease with residual value of $9700, can they set the residual value as the current market price (approx. $15-$17k).

• 

  Donaldhump on 06/09/2022 - 16:08

  +1

  what did they say when you rang them

  • 

    Euphemistic on 06/09/2022 - 18:20

    “Great idea. We’ll make it market value then instead of what was written in the contract”

• 

  avoidfullprice on 06/09/2022 - 16:20

  +3

  No. The payout figure depends on your purchase price (FBT cost base)

  I’m no financial advisor but I’m pretty sure thats the case.

• 

  dbun1 on 06/09/2022 - 16:25

  +4

  No. The payout figure is already calculated based on the purchase price. They won't readjust it now based on current car pricing.

• 

  DarkOz on 06/09/2022 - 16:49

  +1

  Can’t be increased or reduced. It’s based on your purchase price. You just need to add 10% GST on the residual amount.

• 

  Kitscha on 06/09/2022 - 18:14

  Thanks, So it sounds like the "agreed value" is based on the original purchase value of the car and not the current value, the way it was worded is what has confused me.