A Novated Lease is completely portable
DON’T STRESS THE CHANGE IS EASY!
A Novated Lease is completely portable. This means that if for whatever reason you lose your job or need to move on, you can take your novated lease with you and establish it with your new employer.
HOW DOES THIS WORK
A novated lease is made up of two parts. The Finance Lease and the Novation Deed. The Finance Lease is a financial agreement between you and the leasing company and sets out the terms of the financial arrangement; dates, payments, term, vehicle details, parties to the agreement and also a set of terms and conditions that are required by all parties to be adhered to during the agreement. The second document is the Novation Deed. This document sets out the agreement that while you are employed by your employer, your employer will pay the lease from money deducted out of your salary. This document is a tri-party agreement which means all three parties (you, your employer and the leasing company) must sign the agreements before the lease (Finance) is settled (your car is paid for). One of the conditions in the deed is that for whatever reason you leave your employer the deed will be broken and the finance will revert to a finance lease between yourself and the leasing company. However, if this does occur you can re-novate the lease by having your new employer sign a new Novation Deed.
IMPORTANT TO KEEP YOUR SALARY PACKAGING PROVIDER UPDATED
If you are looking to leave your current employer for whatever reason, please contact your Salary Packaging provider to make them aware of the situation ASAP. Vehicle Solutions will never share this information with your employer until you provide your permission. However, knowing this information in advance can assist us in making sure the transition of your novated lease to your new employer is as smooth as possible.
WHAT HAPPENS IF THE NEW EMPLOYER SAYS NO TO MY NOVATED LEASE?
Talk to us as soon as possible! Good salary packaging offers the complete service to employers. Vehicle Solutions has several government contracts on state and local levels but also managers over 85 small, medium and large private employers.
The main reasons an employer maybe unsure or concerned about taking on the service is;
Risk – Some employers still believe the finance is under their name and they are at risk if the employee leaves. This is not the case. If an employee leaves they take the car and the finance with them.
Cost – Some employers believe the administration will be an extra burden on their business. This is not the case. A Good Novated Lease provider does all of the administration for the employer. The employer simple completes the payroll deductions as they do each payroll and transfers the deduction amounts to Vehicle Solutions. From their, we do the rest. We pay all of the accounts (lease, fuel, tyres, services, registration and insurance), we even complete and FBT report for each of the employers at the end of the FBT year. Running the Novated Lease is our job. Once established every employer has commented to us that they should have provided the service years ago.
Our service to employers is entirely FREE. We do onsite presentations, provide information days to employees and are always the first port of call for information and assistance on Novated Leasing within the workplace.
Therefore if you are considering a change of employment and you are not sure if your new employer offers the service, contact us ASAP, and we can assist to establish that service and make the transition small and cost-effective.