Upgrading to a new car when your novated lease ends

As your novated lease comes to an end, it’s the perfect time to reassess your car needs and explore upgrade options. That new car smell you’ve been missing? It could be closer than you think.

Upgrading to a new car on a fresh lease is a popular choice for our customers, and for good reason. It can be a convenient way to get behind the wheel of a latest model car, while continuing to enjoy the potential benefits of a novated lease.

Why upgrade to a new car on a new lease?

When your novated lease ends, it’s more than just a chance to swap cars. It’s an opportunity to rethink what you drive and how it fits your life. Here’s why an upgrade could make sense for you:

• Stay up to date with modern technology: cars are continually updating with smarter safety systems, better connectivity and features that may enhance your driving experience.
• Lower maintenance costs: As cars age, maintenance and repair expenses can increase over time. A new lease may help reduce unexpected bills and the peace of mind that comes with warranty coverage.
• Continued tax benefits: upgrading to a new novated lease may allow you to continue accessing potential tax savings.
• Lifestyle fit: your needs may have changed since your last lease. Perhaps you need more space for a growing family, want a car better suited to commuting, or prefer something smaller? Upgrading ensures your car matches your current lifestyle.
• Experience the EV lifestyle: If you haven’t made the switch to an electric vehicle yet, the end of your novated lease may be a good time to consider it. EVs may offer lower running costs, reduced emissions and access to the latest technology. Plus, leasing an EV that is eligible for the FBT exemption^ could be very cost-effective.

How to upgrade to a new car on a new lease

Getting into a new car is typically a straightforward process, and our novated leasing experts at Smart are here to help you through the process.

Here’s how the process generally works:

1. Speak to one of our experts

Start by chatting with our team. We’ll help you explore your options and find the perfect car for your lifestyle, whether it’s a new EV or something bigger for the family.

Because you’re with Smart, you also get access to our nationwide dealer network. That means we can assist in negotiating a competitive price on your behalf, or you can source the car yourself if you prefer.

2. Submit your finance application

Once you’ve chosen your new ride, we’ll guide you through the finance application process.

3. Accept your quote

We’ll provide a tailored, competitive quote that includes all the benefits of a novated lease:

• Tax savings: A portion of your repayments may come from your pre-tax salary, reducing your taxable income.
• Bundled costs: Running costs, such as insurance, registration, servicing, and fuel can be bundled into one simple payment.
• Convenience: With everything handled through your pay, budgeting for your car can be simpler.

At the end of your current lease, the residual amount on your current car is payable by you, but there are a number of options available to you to make the transition smooth.

4. Sign off on the final documentation

We’ll prepare all the paperwork and make the process seamless. Once signed, you’re ready to hit the road!

Bonus: Need to sell your current car?

Selling a car can be a real headache. That’s why we offer Smart Sell™, a complimentary service designed to help you secure a competitive price for your current car, without the hassle. 

The process is simple: 

• Complete a quick self-inspection on your phone. It only takes about 15 minutes. 

• Receive a competitive, no-obligation offer within an hour. 

• Keep driving your car right up until the sale is finalised. 

We handle the tricky parts, so you can focus on the excitement of your upcoming new car. The funds from the sale may then be used to pay out the residual amount on your current lease.

Often, our customers find they have some cash left over from the sale to put towards their new lease or it may be spent at their discretion.

Other options at the end of your lease

While upgrading is a popular choice, it’s not your only one. You also have the flexibility to:

• Refinance your current car: If you still love your car, you can simply refinance the lease and keep driving. Your payments may even be lower this time around.
• Buy your car outright: You can choose to buy your car by paying the final residual amount. Once that’s paid, the car is all yours.