How does guaranteed future value leasing work?

As the old saying goes -your brand spanking new vehicle depreciates in value from the second that you drive it out of the showroom. Many of us opt for a lease for a new vehicle – this is a tax-efficient way to finance a vehicle without tying up capital. However, the market value of your vehicle at the end of the lease contract is a matter for speculation, with variables including the condition of the vehicle and the state of the market at the time.

With normal car lease programs, you pay an amount each month depending on how far you travel. At the end of the lease period, you can switch for a new vehicle or pay a lump sum or balloon payment. Sometimes the balloon payment is less than the car is worth, and you can sell the vehicle for a profit. However, sometimes the car has depreciated to the extent that the balloon payment is larger than the value of the car – mostly an unexpected and financially awkward situation.

With a guaranteed future value lease contract, when the contract ends, you have three options – you can keep the car, return the vehicle or trade it in for another vehicle. If you return the vehicle, all payment obligations cease. If you trade the vehicle in, and the actual trade-in value is higher than the guaranteed final value, then you will receive the difference. If you keep the car, you will pay the final figure as agreed at the beginning of the contract.

There are obviously terms and conditions that will apply to these deals, and these will vary from manufacturer to manufacturer. The bottom line is that this type of deal is only available for finance deals supplied by the manufacturer. Expect there to be limitations on distance travelled over the period of the lease, and the vehicle must usually be serviced within the manufacturer’s network.

Each manufacturer will have different guidelines for what is deemed to be normal “wear and tear” – make sure that you are clear on these, and also remember that “wear and tear” applies to paint, wheels, underbody, windows and interior. If the condition of your vehicle falls short at the end of the contract period, the guaranteed value will be adjusted accordingly.

Contact Carbiz on 1300889256 or message us today

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What To Do If Someone Hits Your Parked Car

Coming back to find your parked car damaged is never fun, but knowing how to respond correctly can save you time, money and stress.

Firstly, understand that getting upset is natural, but taking a deep breath will help you make better decisions. Examine your car thoroughly and document any visible damage, taking multiple photos from different angles, including close-ups of dents, scratches or broken parts, and capturing the surrounding area, such as road signs and markings, for context.

Next, see if you can locate the driver responsible. Sometimes, people leave a note with their contact information and insurance details. If there’s no note, look for witnesses nearby who may have seen what happened. You can also check for CCTV from nearby businesses, homes or on the street, as some areas have coverage. If you’re unsure, consider contacting the local council to find out whether cameras are in place that might have captured the accident.

If the driver didn’t leave a note, or if they did but are unresponsive or the information they provided seems incorrect, contact the police to report the accident and provide all the information you have, including photos, footage and witness statements. Be sure to request a copy of the police report, as it can be useful when dealing with insurance.

If you’re still having a hard time getting a hold of the at-fault driver and therefore cannot claim directly through their car insurer, it’s time to lodge a claim with your own insurance provider, if you have one. Provide them with as much information as possible, including the police report. From there, your insurer can determine whether your coverage, along with the information you have, will cover the damage to your car.

If your car insurer happens to find information about the at-fault driver and is able to have them lodge a claim so the costs of the damage are recoverable, you can contact Carbiz for a replacement car while your car is being repaired or until it’s been deemed a total loss. This ensures you’re not left without a car during this time, giving you peace of mind and the ability to keep your life moving.

For help organising your next steps, read our car accident insurance claim checklist and explore accident replacement vehicle options.

What It Means When Your Car Is Declared A Write-Off After An Accident

Updated 6 October 2026.

When an insurer declares a car a write-off, it has assessed the vehicle as a total loss under the policy. The damage may make repairs unsafe, or the cost of repairing the car may make a repair uneconomical. A write-off does not always mean the car is visibly destroyed.

How is a write-off decision made?

The assessment can take account of the vehicle's value, repair costs, salvage value and the policy terms. There is no single repair-cost percentage that determines every write-off across Australia. Ask the insurer for its assessment and the basis for its decision.

A total-loss insurance decision and a vehicle's written-off registration category are related but different matters. Whether a car can return to the road depends on the damage classification and the rules of the relevant state or territory.

Statutory and repairable write-offs

Statutory write-off: the vehicle meets specified damage criteria and cannot be re-registered for road use.
Repairable write-off: repairs may be technically possible, but the vehicle has been assessed as uneconomical to repair. This label does not itself authorise repairs or guarantee re-registration.

Requirements vary across Australia. In NSW, an eligible written-off light vehicle needs an Authorisation to Repair from Transport for NSW before work begins. Only limited applications are considered, and vehicles with statutory write-off damage are excluded. Approval, compliant repairs and the required inspections are separate steps.

What happens to your insurance payout?

The settlement depends on your cover and circumstances. It may be based on an agreed value, a market value or a replacement-vehicle benefit if your policy provides one. An excess, outstanding premium or finance arrangements may affect the amount you receive. Ask for a written breakdown before accepting the settlement.

Keep the assessment, photographs, policy documents and correspondence together. If you disagree with the valuation, provide relevant evidence and use the insurer's complaints process. See AAMI's explanation of total-loss claims for an insurer's example; your own policy determines your cover.

Getting around after a not-at-fault accident

If you need a replacement vehicle, tell Carbiz that your car has been declared a write-off. Eligibility, vehicle availability, the hire period and the terms of the agreement need to be confirmed for your circumstances. A write-off does not automatically entitle everyone to unlimited hire.

Contact Carbiz to discuss your accident replacement vehicle options. For a practical checklist, read what to do after receiving a write-off decision.

15 August 2017