Have you ever thought about leasing your vehicle rather than buying it outright? You may choose to take out a standard vehicle lease or a novated lease. A standard lease is whereby you lease the car from the finance company over a period of time, usually between two and five years. Once the lease term is complete there will be a residual amount owing. The residual amount can be re-financed over a further term or paid out so you own the vehicle outright.  Alternatively you may wish to return or trade-in the vehicle. The difference between the value of the vehicle and the residual amount will be your responsibility. You will be responsible for paying the loss or receiving payment if there is a gain.

Another form of vehicle leasing is by way of a novated lease. A novated lease is similar to a standard vehicle lease, however, your employer makes the lease payments from your pre-tax income, which reduces the amount of tax you pay. Although your employer is responsible for making your lease payments, the lease is in your name so should you cease employment with your employer the lease will be your responsibility. As with a standard vehicle lease there is a residual amount at the end of the term which again you may choose to refinance, pay-out or return or trade-in the vehicle.