What do I do? Don’t worry! JBS Salary Packaging (JBSSP) can help.
Generally there are three options at the of a lease:
1. Pay out the residual and you own the vehicle outright
2. Refinance the residual
3. Trade in the vehicle and get a brand new one
When you commenced your lease, you would have chosen a residual – 15%, 20%, 25%, etc. When your lease term ends, you have the option to pay out the rest of the debt to then own the vehicle. For example; You buy a $60,000 car on a lease with a 20% residual so at the end of the term, if you wanted to pay out the residual, you need to pay a lump sum of $12,000.
Alternatively, you could take out a further lease for a couple of years and package the remaining $12,000. This means that you keep your car and things really remain unchanged other than a bit of paperwork to get it organised.
Or you can start looking for your next shiny new addition to your family. You trade in the vehicle (with the idea that the trade in would cover your residual) and you start a new lease with a new vehicle. This seems to be the most attractive offer to many as everyone loves a new car and if you’re used to salary packaging, you are happy for it to continue.
JBSSP can help by discussing the options and outcomes with you so you can make an informed decision on the best option for you and your family. Why not give us a call to find out your options.