Does the residual value on a novated lease reduce due to high usage?
eg: for a 50,000/- budgeted annual Km’s can the value be smaller than 46.8% as determined by ATO?
the lease provide mentioned that this can be further reduced by 10% is that correct? Is there a method of calculating this by usage?
thanks
The residual value is set when you take out the lease, it doesn't change. Its based on a minimum percentage of the vehicle cost over the lease term. This is where you have the option of taking into consideration your mileage by discussing it with the lease company.
The residual value is set when you take out the lease, it doesn't change. Its based on a minimum percentage of the vehicle cost over the lease term. This is where you have the option of taking into consideration your mileage by discussing it with the lease company.
Thanks for the response, I have been quoted for 2 different residual values for the same vehicle. For a 3 year lease periord the stantard ATO determined valve is 46.8% but due to high usage viz 50,000 km per annum, this was reduced by 10% to 36.8% by one company and another one reduced it to 30%. Not sure if that is even possible.
Hi @Ash_WA
What do the terms of the lease say? Check out this info about what the residual value should be based off.
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