At the end of the lease term, you will be responsible for payment of the lease residual amount. You do not automatically obtain ownership of the vehicle until the residual has been paid. The following four options are available to you:

Trade In for a New Car
Trade the vehicle in on another Novated Lease vehicle. You will retain any equity built into the vehicle over the term of the lease (Income-Tax free); however you will also be responsible for any shortfall between the price paid by the dealer and the lease residual (payable from post-tax income).

Refinance for a Further Term
Refinance the vehicle under a Novated Lease or another finance type (eg. consumer loan); or

Purchase the Vehicle
Consider making an offer to the financier to pay out the residual amount to obtain ownership of the vehicle; or

Dispose of the Vehicle
Return the vehicle to the financier. The financier will dispose of the vehicle and you will be responsible for any shortfall in the sale price. As this rarely provides the best end of lease option, we recommend you always consult with Southgate before proceeding with this option.

Note: You cannot use pre-tax funds to pay out any residual amount.