Maturing Novated Leases
Frequently Asked Questions
What options are available to me?
With the lease maturity date approaching it is time to consider options available to you. At the end of your lease term, you may be able to:
- Upgrade to a new car*;
- Payout the residual to keep the car;
- Renew the lease for another term; or
- Sell the car (you would be required to payout any amount owing).
* You would be required to trade in your existing car, sell privately or payout the amount owing.
Is it cheaper to payout the lease with cash?
The reason for this is that the tax savings generally outweigh cost of the lease. Statewide's Registered Tax Advisers can provide objective cash flow analyses to compare paying cash verse renewing the lease for another term or replacing with a new lease vehicle. Please note that these services are outside the scope of the Queensland Government contract and therefore, Employees may choose to utilise or not utilise this service through Statewide.
Considering a new car?
If you are looking to move on to a new car at the end of your lease term then Statewide would be happy to assist. We are able to source new car prices with fleet discounts and provide assistance ** with trading in your existing car. We are able to tailor a novated lease package to suit your needs.
I have decided I would like to payout my lease, how/when should I process payment?
If you are considering paying out the residual with another form of finance please consider that novated leases are generally cheaper than paying cash. Renewing the lease for a short term is an effective way to reduce the residual owed at the end.
If you have decided that you no longer want to receive the tax savings associated with a novated lease then you can certainly payout the residual to own the car. Please contact our Lease Maturity Manager at firstname.lastname@example.org. They will be able to provide you with all the finalisation details you need to payout your novated lease.
To avoid paying unnecessary interest charges it is recommended that you process payment for the residual on the due date. If you choose to payout the lease early there is a possibility that the financier will apply an interest adjustment to your account, slightly increasing the total amount due.
What will happen with my fuel cards and reimbursement claims?
When you pay the residual you will also be required to submit a cessation form confirming the final vehicle details. The cessation date for your novated lease will be either the date you payout the finance or the maturity date (whichever occurs sooner). On the cessation date your fuel cards will be cancelled and any reimbursement claims received after this date will be rejected. It is strongly advised to have any servicing/repairs etc completed on the car and any reimbursement claims submitted before the cessation date you indicate on your cessation form.
** These services are outside the scope of the Queensland Government contract. Therefore, Employees may choose to utilise or not utilise this service through Statewide.
Should you require any further information please do not hesitate to contact our office:
Phone: 1300 76 1114