End Novated lease couple of months early?
Submitted: Tuesday, Jul 18, 2006 at 14:30
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tdv
Hi
This is for the lease gurus.
I have a novated lease that isn't due to expire until the end of June 2007 (3 year lease/ approx 100,000km by then). Unfortunately that is in the middle of my long service leave/4month trip across the top with the family.
I was originally thinking of kitting out the existing car (Prado 120TD) with all the extras before we go ($3000 plus worth of gear) and sorting the paperwork before we leave to buy the car out then replace it when we get back with a new lease.
However I'm wondering whether I can end the lease a few months early and get a nice shiny D4D Prado with all the bits fitted under a new lease arrangement, ie break the lease early on current car.
Is it financial suicide to break early???
Am I better off travelling with a newer car and fitting the accessories as part of the lease instead of buying them and fitting them to the current one???
Any advice appreciated before I start ringing lease companies etc.
Cheers
Tez
Reply By: BravoMan - Tuesday, Jul 18, 2006 at 15:35
Tuesday, Jul 18, 2006 at 15:35
As for ending the lease early, it shouldn't be too bad, best to check with the lease company. (I ended one 8 months early, and it was ok)
Adding $3000 worth of extra's to an older car won't increase its value by $3000, and if you're getting rid of it when you get back - it could be seen as a waste of money.
You might be able to convince a dealer to include & source some extra's on a new vehicle & then organise to lease new vehicle + extra's.
You'll need to get your payout figure on the current lease, work out a budget for the new car & then do the sums :) Good luck :)
AnswerID:
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Follow Up By: tdv - Tuesday, Jul 18, 2006 at 15:52
Tuesday, Jul 18, 2006 at 15:52
"Adding $3000 worth of extra's to an older car won't increase its value by $3000, and if you're getting rid of it when you get back - it could be seen as a waste of money."
This is what i was thinking but was unsure what breaking the agreement might cost me. i guess i can only ask.
Plus a newer car should (
well hopefully) be more reliable and not have fatigued
suspension etc.
thanks for the response.
FollowupID:
440742
Reply By: Member - Jon W (QLD) - Tuesday, Jul 18, 2006 at 17:46
Tuesday, Jul 18, 2006 at 17:46
Tez,
If you want extras, get the dealer to include every item on their invoice. This way all the extras are paid for with pre-tax dollars also. The lease company wants to know the bottom line figure only.
Jon W
AnswerID:
184103
Reply By: Member - Alastair D (NSW) - Tuesday, Jul 18, 2006 at 17:58
Tuesday, Jul 18, 2006 at 17:58
tdv,
My experience on a number of leases is that provided you are replacing the vehicle with another on they are delighted and will work out a deal regardless of the timing. Different matter if you are just finishing, then they will hit you for a penalty.
As someone else said talk to them about the extras because you can avoid some of the tax if the items are effectively added after the vehicle purchase, but still included in the lease.
Don't even think of adding them to the existing vehicle, you will just lose money unless you plan to keep the vehicle for a while.
cheers
ad
AnswerID:
184107
Reply By: Member - Peter A (VIC) - Tuesday, Jul 18, 2006 at 23:08
Tuesday, Jul 18, 2006 at 23:08
check the people fromwhere you got the lease in the first place, they would know wouldn,t they, they gave you the lease
AnswerID:
184186
Reply By: bgreeni - Tuesday, Jul 18, 2006 at 23:52
Tuesday, Jul 18, 2006 at 23:52
Should not be a major problem. I few years back I wanted out of a lease 12 months early as I was moving overseas. The lease compny were going to give me nothing, infact from memory i was going to have to pay them, so i shoped around and found a dealer who agreed to take the vehicle. he paid me, I bought the vehicle from the leae company and handed it over to the dealer and ended up with a tidy lump sum.
AnswerID:
184199
Reply By: tdv - Wednesday, Jul 19, 2006 at 09:17
Wednesday, Jul 19, 2006 at 09:17
Thanks everyone....you confirmed my general thoughts. I'll ring the company and see how willing they are and what fees they will hit me with. Then I'll need to wait for the new D4D Prado and see what it is like.
Cheers
Tez
AnswerID:
184228
Reply By: Nick R - Wednesday, Jul 19, 2006 at 15:38
Wednesday, Jul 19, 2006 at 15:38
Along with the lease company you should also talk to the person / employer who novated the car to you as I imagine they are making the payments as part of your employment package???
NickR
AnswerID:
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