Canna Campbell

So for example, you might buy a car for say $60,000, but the residual amount may be say $20,000 after year four or year five, depending on the terms and conditions.

So, obviously, the lease repayments.

Then, of course, interest, because these no bed lease companies are need to make money.

Insurance.

Yeah.

Then rego, maintenance, and, of course, any sort of management fees that the no bed lease company may charge.

And it does feel very simple, but it doesn't necessarily mean it's cheap.

Yes.

So you'd have to know roughly how much driving you do per year so they can work out the right amount of obviously wear and tear on the car, how much fuel, how often you need to get it serviced and things like tyres being replaced or brake pads.

So no, the balloon payment, you've got a few different options.

And again, it comes down to the fine print and getting some advice.

So some people will actually roll that over and take out a new lease on that balloon payment.

Some people will hand the car back and pay out the difference.

Some people will sell it.

I've even seen a couple, not often, but there were situations where people would sell it and actually end up with some money.

But a lot of people tend to roll it forward.

They'll upgrade the car.

Well, the government incentives are probably the biggest one here.

So in Australia, many EVs that are on a notavated lease are FBT-free.

So fringe benefits tax is not charged when you take a notavated lease on an EV.