Key Takeaways
- You can transfer your novated lease to a new employer, if that employer supports salary packaging.
- The process involves notifying your lease provider, coordinating a new deed of novation (or similar agreement) between you, the financier / provider, your old employer, and your new employer.
- If your new employer doesn’t support novated leasing, alternatives include:
• Continuing the lease yourself (making all repayments privately/post-tax)
• Refinancing or paying out the lease early or terminating (note possible fees or costs)
Yes, transferring your novated lease is usually possible.
If you're moving to a new job and your new employer offers novated leasing, you can generally transfer your existing lease with a little coordination.
How to transfer your novated lease:
1. Confirm your new employer supports novated leasing
This is the first and most important step. Not every company offers novated leasing as part of their salary packaging benefits, but almost all will include it as part of your offer if you've brought it up.
If they don’t, see your other options below.
2. Notify your lease provider
Your lease provider (like us) will guide the transfer process. They’ll work with your new employer to update the salary packaging agreement and restart payroll deductions.
3. Paperwork and approval
Your new employer will need to sign a new deed of novation. There’s a bit of admin, but once approved, your repayments continue, and your tax benefits are preserved.
What if my new employer doesn’t offer novated leasing?
If novated leasing isn’t an option with your new employer, you’ll need to:
- Take over the lease privately: You continue to make the lease repayments personally (post-tax) until the lease ends.
- Refinance or pay out the lease: You can refinance the remaining lease amount into a regular car loan or pay it out in full.
- Early termination: You can also choose to end the lease, though fees may apply.
Important things to know:
- There's usually a small fee to transfer, but it depends on the new employer and what arrangement we may have with them. We'll always be upfront about this fee as soon as we know where you're moving.
- Your car stays with you during the process, you don’t lose it unless you actively choose to terminate.
- The lease term, repayment amount, and inclusions stay the same unless renegotiated. The main thing that changes is a different payroll is making your payment.
Key takeaway
As long as your new employer supports it, transferring your novated lease is a smooth and common process - just make sure to loop your provider in early.
