When the Residual Doesn’t Add Up
Sell your Novated lease vehicles as second-hand gold: well-maintained, service-logged, and under five years old. But many are now hitting the market with inflated residual values — figures agreed upon when car prices were at pandemic highs. As the broader market corrects, those residuals often exceed the vehicle’s actual worth.
For sellers, this can mean selling at a loss or covering the shortfall out of pocket. For buyers, it introduces a confusing blend of premium trim levels and uncompetitive pricing.
Opportunity or Oversupply?
With employers winding back salary-packaged leases and economic uncertainty rising, these cars are appearing in wholesale lots and private listings at scale. While some are competitively priced, many still reflect outdated valuations. Buyers should approach with scrutiny.
This influx is not inherently bad — but it marks a shift. Novated leases are no longer niche. They are now a major segment of the resale landscape. Whether that leads to better value or greater volatility remains to be seen.