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 new employer. The good news is that novated leases are portable between employers, providing you with flexibility and peace of mind.
Before we dive into what happens if you leave your job or change employers, let’s briefly review what a novated lease is. A novated lease is an agreement between you, your employer, and a finance company. You lease a vehicle, and your employer makes payments on your behalf, where a portion of which are deducted from your pre-tax income, saving you money. Running costs are also included in the deduction, allowing you to conveniently purchase the running costs of the vehicle. 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, your lease agreement remains in place and you can continue the agreement directly with the finance company, or you may be able to transfer the lease to a new employer if they agree to take on the lease. It’s important to note that if you choose to transfer 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 or potentially transfer it to a family member or associate.
Benefits of Portable Novated Leases
One of the main benefits of a portable novated lease is that it provides you with flexibility and peace of mind. You can continue your lease even if you leave your job or move to a new employer. This means that you don’t have to worry about being stuck with a vehicle that you can no longer afford, or that is no longer suitable for your needs.
Additionally, portable novated leases are now available to every working Australian, not just those in the public service sector. This means that you can take advantage of the benefits of a novated lease, regardless of your employer or industry.
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 continue the agreement directly with the financier or transfer it to a family member or associate if you decide to leave your job. So, you don’t have to worry about being tied down to a particular job or location.
When considering a lease, it’s 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.