Changing jobs with a novated lease

What Happens to Your Novated Lease When You Change Jobs?

The good news is that transferring a novated lease to a new employer is possible if your new company offers salary packaging. If they don’t, there are still options available to help you continue your lease without disruption. The key is acting early and understanding how your novated lease will be handled as part of your job transition.

What Happens to My Novated Lease If I Change Jobs?

Because a novated lease is managed through your employer, a job change means your salary packaging arrangement with them will end. This means:

• Your lease provider will need to be notified so they can assist with the transition.
• Your new employer will need to agree to take on the lease if they offer novated leasing.
• If your new employer does not offer salary packaging, you may need to adjust how your lease is paid.

Failing to organise your novated lease change employer process quickly could lead to unexpected costs, so it’s best to act as soon as you confirm your job move.

Transferring a Novated Lease to a New Employer

If your new employer offers novated leasing, transferring your lease can be a straightforward process. Since a novated lease agreement is structured between you, your employer, and the lease provider, switching jobs means this agreement needs to be re-established with your new workplace. The key steps include:

1. Confirming with your new employer that they support salary packaging for novated leases.
2. Notifying your lease provider to begin the transfer process.
3. Finalising a new novated lease agreement, ensuring your lease payments and running costs continue to be deducted from your pre-tax income.

Once the transfer is complete, your lease will function the same way as before, with regular deductions covering lease payments, fuel, servicing, and other running costs. Ensuring this process is handled promptly prevents any payment disruptions and keeps your tax benefits intact.

What If My New Employer Doesn’t Offer Novated Leasing?

If your new employer does not support novated lease options, you will need to explore alternative ways to continue making payments on your vehicle. While this means you won’t be able to access salary packaging benefits, there are still several ways to manage your lease without disruption.

One option is to continue making payments directly to the financier, covering the remaining lease payments from your post-tax income. This keeps your lease active without requiring an employer’s involvement.

Alternatively, you may consider refinancing your lease into a traditional car loan, where a finance company takes over the lease, allowing you to manage repayments independently.

Your novated leasing provider can guide you through the best approach based on your circumstances, whether that’s continuing payments, refinancing, or exploring other options. Acting quickly ensures a smooth transition and avoids penalties or unexpected costs.

Make Changing Jobs with a Novated Lease Easi

Starting a new job doesn’t mean you have to give up your novated lease. At Easi, we simplify the process by working with you, your new employer, and your lease provider to ensure a smooth transition. If your new employer offers salary packaging, we’ll assist in setting up a new novation agreement, ensuring your lease continues without disruption.

If transferring your lease isn’t possible, we’ll help you explore alternative options, whether that means adjusting how payments are made, refinancing, or planning for a new vehicle under a fresh lease agreement.

Our team is here to guide you through the process, making it as straightforward as possible so you can focus on settling into your new role without unnecessary stress.

Need Help Managing Your Novated Lease During a Job Change?

A job change doesn’t mean the end of your novated lease, but it does require planning. The sooner you explore your options, the easier the transition will be.

The team at Easi can help you navigate the novated lease job-changing process so you can focus on your next career move without worrying about your car.

We are Australia’s premier novated lease and salary packaging provider - speak to our expert team today to find out more about our novated lease solutions for standard and electric vehicles.