What happens at the end of a novated lease?
With a bit of planning, you can make the most of your residual, keep the tax benefits going or simply walk away with keys in hand. We’re all about giving you options.
Your three options at the end of your lease
1. Refinance your lease and keep your car
Not ready to say goodbye? You can re-lease the residual amount and keep driving the same car under a new lease term.
- Your fuel card stays active
- Any surplus in your account rolls into the new lease
- You continue to access the same tax benefits
It’s great if you love your car and want to keep the perks going. Run the numbers on a new lease term with our calculator.
2. Pay out the residual and own the car
Pay your residual, and the car is yours. Your financier will send payment instructions ahead of your due date so you’ll know when it’s coming.
Your fuel card and lease-provided insurance (if applicable) expire when your residual is due or paid, depending on your lease terms and payment timing.
3. Upgrade to something new with TradeLab
Get a new set of wheels. If your current car is worth more than the residual owing, that difference is yours to keep, tax-free.
TradeLab handles the trade of your current vehicle and helps you get the best deal on your next one. All in one place.
Browse cars available for your next novated lease. Or if you're thinking about making the upgrade to electric, explore our EV options here.
How TradeLab works: The end of your novated lease
No haggling. No dealership run-around. No pressure.
- List your car using the guided inspection process in the app. Photos, details, condition. Takes about 15 minutes.
- Dealers bid against each other across our network. Competition drives the price up, not down.
- Accept the best offer. Any equity above your residual is yours, tax-free.
- Done. Your car is collected from home, work or another agreed location.
TradeLab is built into your end-of-lease experience. We really are here for the long road.
We’ve got you wholeheartedly
Your account manager can walk you through your end of novated lease options and make sure everything is settled well before your end date.
Reach out early. A little planning now goes a long way.
Download the employer's guide to novated leasing. Free, of course.
FAQs
When should I start thinking about my lease end?
Ideally, 3 to 6 months out. That gives you enough time to explore your options, get a potential valuation through TradeLab, and have your next lease ready to go without any gap in cover or benefits.
What is a novated lease payout figure?
Your “payout figure” is your residual value. It’s the ATO-set amount owing at the end of your lease term.
Can I refinance my novated lease if I still owe a residual?
Yes. Refinancing your novated lease means rolling the residual into a new lease term on the same car. Talk to your account manager about whether this is the right move for your situation.
What if my car is worth more than the residual?
That equity belongs to you, tax-free. TradeLab's dealer bidding network is designed to help you get the strongest possible offer so you can maximise what you walk away with.
Can my employer offer novated leasing as a workplace benefit?
Absolutely. If your employer isn't set up yet, it's a straightforward process, and we handle most of it. Find out how it works for employers with our guide to novated lease.
Get in touch today
Learn about how novated leasing can add value to your employee benefits program. Our specialist team will support you through the process.
