How Long Do Novated Leases Last?

A novated lease typically lasts between one and five years, offering a range of options to suit different preferences and financial situations.

Lease Duration

Short-Term Leases (12 to 24 months):

Short-term leases are ideal for those who enjoy driving newer models and want the flexibility to upgrade more frequently. With a lease lasting between 12 and 24 months, you can experience the latest vehicle technology and features without committing to a long-term agreement. However, the shorter the lease, the higher the monthly repayments may be, as the vehicle’s depreciation is spread over a shorter period.

Long-Term Leases (36 to 60 months):

For those seeking lower monthly repayments and greater financial stability, a longer-term lease spanning 36 to 60 months is a popular choice. Spreading the cost over a longer period results in reduced monthly payments, which can make budgeting easier. Additionally, long-term leases are suitable for individuals who prefer to stick with the same vehicle for a few years, especially if they don’t have the desire to upgrade regularly.

Flexibility in Terms

Many leasing companies offer flexibility within the one-to-five-year range, allowing you to tailor the lease duration to suit your personal and financial needs. If the standard one, three, or five-year terms don’t fit your situation, you may be able to negotiate a custom duration with your provider. Whether you’re looking for a lease that balances affordability with the option to upgrade, or a longer-term solution with lower monthly costs, you have options to match your preferences.

Conclusion

When choosing a novated lease term, it’s essential to consider your driving habits, financial circumstances, and vehicle preferences. Whether you opt for a short-term lease to experience the latest models or a long-term lease for greater stability, the key is to ensure it aligns with your needs. Always consult with your leasing provider for detailed advice and to understand the benefits of different lease terms.

Interested in exploring a novated lease? Contact us today to find the perfect option for your lifestyle and budget!