What happens to excess funds at end of novated lease?
Novated leasing residual value
The amount remaining, when you've paid down as much as you're legally allowed to – is the residual. What if I pay off the residual? You will own the vehicle outright, and your tax benefits will disappear.
How do I end a novated lease early?
Paying Out Novated Leases Early
If you need to finish your lease early, there's usually a termination fee that you'll need to pay. You'll have to pay this fee if: You use cash to pay out your novated lease in full before the due date. You refinance your novated lease.
Are novated leases worth it?
Is a novated lease worth it? In most circumstances, novated leases offer substantial income tax and GST savings while bundling up all the costs of running a car into one easy, fixed, and regular payment. If it's available to you, its benefits usually far outweigh a standard car loan.