Keep your Novated Lease even if you change jobs
If you're considering a novated lease, one question you may have is what happens if you leave your job or want to move your lease to a potential new employer. The good news is that novated leases are portable between employers, providing you with flexibility and peace of mind.
Before we look further into what happens if you leave your job or change employers, lets briefly review what a novated lease is. A novated lease is a tri-party agreement between you, your employer, and a finance company. Essentially, you lease a vehicle, and once your employer novates the lease, they make payments on your behalf in relation to the vehicle and its running costs. A portion of these payments is deducted from your pre-tax income, saving you money. Running costs are also included in the deduction, allowing you to conveniently cover the vehicles running costs. At AANT Salary Packaging, we offer a flexible VISA card to purchase fuel, making it too easy.
What Happens if I Leave My Job?
If you leave your job, the novation agreement ceases, and your former employer no longer has any obligations relating to the lease agreement. You can continue the agreement directly with the finance company, or you may be able to transfer or re-novate the lease to a new employer. It is important to note that if you choose to re-novate the lease to a new employer, they must also be willing to enter into a novation agreement with the finance company.
So, I want to move my lease to my new employer. What now?
If you want to move your lease to a new employer, this means that they will take over the lease payments and other obligations from your previous employer. In the rare event that your new employer is not willing to enter into a novation agreement, you can continue the lease directly with the finance company.
I am only in the Northern Territory for 2 years. Can I transfer my lease to a new employer?
If you're only planning to be in the Northern Territory for a couple of years and you're wondering if you can take your novated lease with you to a new employer, interstate, the good news is that you can!
Novated leases are fully portable between employers, which means that you can take it with you if you switch jobs. You can also continue the lease agreement directly with the financier if you decide to leave your job. So, you dont have to worry about being tied down to a particular job or location.
When considering a lease, its important to understand what happens if you leave your job or want to move your lease to a new employer. The good news is that novated leases are portable between employers, providing you with flexibility and peace of mind.
At AANT Salary Packaging, we offer a range of novated lease options to suit your needs. Contact us today to learn more.
