Saturday, August 9, 2008

End of Novation Period - What Options? Part 1

At the end of the novation period, the agreed residual value plus GST needs to be paid to the financier.

There are four options available to you.

Option 1 - Offer to Purchase the Vehicle

If the driver wishes to keep the vehicle, he/she makes an offer to purchase it from the financier for the agreed residual amount plus GST. This amount has been pre-determined and accepted by both parties in the initial contract. The offer is generally accepted by the financier. Funds are transferred to the financier and clear title of the vehicle is then passed to the driver.

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