Need Advice On Buying A Car Currently In A Novated Lease

[Craig.]

Hi Guys and gals.

Just wondering for those that will be more in the know than me, if I purchase a car off a company halfway through the lease period of that car, is it similar to purchasing a car that is under finance?

That is, do I need to make the cheque out to the lease company instead of the business selling the car?

I have not had any dealings with this before, hence the question. I am currently looking for another car at the moment and this has come up with one potential purchase.

Anyone enlighten me?

Edited 11/09/09 05:12 AM by craiginmackay

[ronburgundy]

Under a novated lease you are still the owner/obliged to make payments. You simply 'novate' the cash flow obligations to your employer. If you want to buy, you don't owe your employer, you owe the financier

[icer]

I just bought a car from ch0pper on here and his car had 13,000.31$ left on the lease. I hot him to send me a copy of the lease and how much a payout figure was from his lease companuy. Maquari paper showed its owings and where to put the money into (bank account). I got a bank cheque from my bank, deposited into that account, then ch0pper on wrote on an a4 piece of paper his car details, sale price, my details and his signature. Deal was done!

just ring up where the lease is and ask them what would be the final payout figure. Make sure there are no hidden costs aor 'you have to pay a penalty fee of 1000$ if you pay out the lease in full before end of lease date'

Should be fine

[Craig.]

Thanks *Beep*.

So from what you are saying, it is kinda like buying a car under finance. I will have to have a cheque drawn up to pay off the remaining part of the lease and then any extra needs to have a cheque drawn up paying they guy ( or company) selling the vehicle to me.

[Craig.]

Under a novated lease you are still the owner/obliged to make payments.

No, I think you misread my first post. I'm not leasing a vehicle. My employer wont entertain the idea ( bastards) even though it would have some definite tax advantages for me.

I'm considering purchasing a vehicle second hand ( using good old folding green stuff) off someone who leases it. They have taken advantage of the 50% rebate being offered by KRudd for business at the moment.

What I am trying to establish is whether or not I need to make payments to just the guy selling it, or to the leasing company. In other words does a lease mean that the vehicle is encumbered. If I write out a cheque to the guy selling it and he doesn't pay the lease in full, will the leasing company try to yake my car away from me?

I suppose either way, a REVS check should be able to clear this up but thought there may be guys here that are in the know on such things!

[Buf-Phoon]

As I understand it the person selling the lease car will have a pay out figure to pay out said lease .

This amount should be paid to the lease company ( bank cheque or similar )as technically they own the vehicle.

The owner owns nothing but the payout figure

In the event that the vehicle is towards the end of the lease any amount above the payout figure the balance would

made payable to the person selling the car.

Speak to your local Motoring Authority to confirm the paperwork requirements

hope this helps

[PepeLePew]

Make sure to get a firm payout from the lease co, mid lease there will be termination charges etc which can be pretty significant.

[ronburgundy]

Sorry misunderstood the topic line - a well-placed comma might have helped me!