A mid lease novated transfer refers to the process of transferring a novated lease from one employer to another. The concept of a novated lease is that an employee can lease a vehicle and transfer (novate) their lease obligations to their employer, who then deducts the payments from their pre-tax income (salary package).
While novated lease agreements are typically set for a specific duration, there may be situations where a person wishes to transfer their lease to another employer before the lease term ends. This could occur due to various reasons such as change in employment, financial circumstances, or personal preferences.
If you wish to hold on to your car after a change of employment, you can transfer over your lease to us. The re-novation process is simple but requires all documents to be signed and returned promptly to allow us to re-novate your vehicle as quickly as possible.
Here are some general things to keep in mind during a lease transfer:
- Transfer time & arrears: It could take some time to process a mid-lease transfer as we need to collect as much information as we can about your current lease. We then need to wait until your employer/salary packager has accrued enough funds to make the first payment. This means, that you may be required to make the next month’s repayment yourself while we wait for funds to accrue. Once we know the due date of your finance repayment, we can then advise whether or not a payment from you will be required.
- Insurance coverage: Many providers (salary packagers and leasing companies) include insurance for the period a lease is active with them. As soon as the lease is terminated the insurance stops, in which case you need to organise your own insurance at least until the transfer is complete. You can choose to continue with them or opt for our comprehensive insurance. This then becomes active only once the agreement starts.
- Big expenses: Generally, on termination the current packaging company or lease provider will disperse excess provisions back to your employer for them to forward to you in your final payout. If excesses are not passed to us from your current employer, we will not have any funds to pay for large expenses that come up in the first 6 months until sufficient funds have accrued. This can take some time to build up.
At StreetFleet, we have developed a simple mid lease transfer form that guides you on which bits of information we need from you so we can transfer your novated lease to us and ensure it happens as quickly as possible.
For more information on how we can help with transferring your novated lease to StreetFleet, please let us know here.