Aaron explains novated leases and what happens when you change jobs. You can transfer the arrangement to a new employer if they support it, convert it to a standard car or home loan, refinance, or pay it out in cash. Plan ahead to avoid surprise payment demands.
So you have a novated lease and you're changing employers. Oh, no. Hey, it's Aaron from Diagnostics and Finance. Let's turn that oh no into being a little bit more comfort. If you've got a novated lease, one of the things, if you have never heard of this term before and you're going, what the hell is he talking about? Oh no. If you have a novader lease, you'll see that on your payslip you'll get a pre tax deduction and a post tax deduction. And it's usually relevant to the employer that you're at a lot of emergency services and a few other entities are allowed to get these benefits to their employees to be able to buy cars and other things. If you have a novated lease and you're leaving this employer and you're going to an employer that doesn't provide these benefits, this is where the struggle comes in. So this is where the owner needs to be turned into, hey, we've got it. And we've been able to move to our next employer, to our ideal job, for example. So what do we do when we have a Novada lease and it's still got an outstanding balance before we leave the employer? Well, the first thing is that we need to get a payout figure and we need to convert this car loan into a standard loan. And that standard loan could be your home loan, we might be able to tack it on there, or it might be a car loan. So we could refinance it into a different type of car loan so that you can still, still do whatever you need to do with regards to if you've got car allowances, all that nice stuff in your wage. So we need to move it from where it is to a standard car loan or into another facility, whether it's your home loan or something else. Or you might be lucky enough to have a bit of cash lying around so that you can potentially accelerate paying that out so that you can get to the next stage of your career development. Novada leases can be worthwhile, but just be careful. When you change employers, it needs to be changed and reshaped. If you're lucky enough to go to an employer that has an ovated lease system, that's brilliant. Usually you can talk to the payroll and the packaging department of that employer and you can move that across so that you're not in a difficult position of going, crap, I've left my job. What do I do now? They're asking for money. Wow, this is not what I expected. Hey, It's Aaron from Diagnostics and Finance. Let's turn that oh, no. Into a little bit of comfort and certainty around your Nerva Italys.
