If you live in Australia and work with an employer who offers a novated lease option, you might have questions. This is a program that benefits you and your employer as far as taxes are concerned, and you might have a few questions before you enter into a novated lease agreement with a car dealership, lender, and your employer. Before you sign and agreements, find out the answers to your most commonly asked questions.
Is the car I buy for me?
Yes, your car is for you. You are financing the car with your own money when you enter a novated lease agreement with your employer. This money is not your employers. It is yours, and you are free to spend it as you see fit. The only thing your employer has to do is take the money for your payment out of your salary prior to paying you.
Does my employer have any say in my car choice?
No, your employer does not have any choice in the kind of car you buy. If they offer Novated Lease Stratton Finance, you are free to buy whatever you want without their input. There are not guidelines, no restrictions, and no input comes from your company. You’re going to choose the car you want and your employer is merely going to adjust your salary payments as necessary to make the car payment to the lender.
Can my employer take my car from me?
Your employer may not take your car from you for any reason. They cannot hold it from you if they feel you’re not doing your job, they may not take it from you, and they may not dictate how you use it. A novated lease does not provide your employer any sort of ownership or rights to your car. All it does it allow them a few tax breaks where their own finances are concerned, and they don’t care what you do with the vehicle you own and pay for.
What happens if I leave my job during my novated lease agreement?
It’s a commonly asked question. You buy a car with a novated lease agreement through your employer. If you decide to take a new job elsewhere, what happens to your car? You may take it with you and transfer your novated lease agreement to your new company. If they offer the same program, you can just transfer the agreement to them. You can negotiate a novated lease agreement if they don’t currently offer one and that’s how you pay for your car.
You can buy your own car with a novated lease agreement without providing any financial power to your employer. You are the sole owner and the only decision maker regarding your vehicle. It’s a beneficial financing option, but it’s one you might want to take advantage of before the offer expires.