No one plans for redundancy — but if it happens, what does it mean for your novated lease? Don’t stress. While job changes can feel overwhelming, you’ve got a few clear options when it comes to managing your lease.
First Things First: What Actually Happens?
A novated lease is a three-way agreement between you, your employer, and a lease provider (like us). If you leave your job — whether by choice or due to redundancy — the lease essentially “de-novates.” That means your employer stops making the before-tax payments, and you take over full responsibility for the lease.
But that doesn’t mean you’re stuck or out of options.
Option 1: Take Over the Lease Privately
If you’re confident in your financial position, you can keep the car and take over the lease payments directly. This means switching to post-tax payments via direct debit until you’re back in a role where salary packaging is available again. The car is still yours to drive, and all running costs continue to be bundled into one regular payment.
This is often the simplest and most immediate option.
Option 2: Re-novate With a New Employer
Once you land a new job, you may be able to re-novate your lease with your new employer — provided they offer novated leasing as a benefit. If they do, your lease can be transferred over and restructured into a new salary package arrangement.
If they don’t? You can still continue managing the lease personally or explore refinancing options.
Option 3: Refinance the Lease
Can you refinance a vehicle to a novated lease? Not exactly — but you can refinance your existing novated lease into a standard personal car loan or finance product if you no longer wish to salary package. This can help spread your repayments out or change the structure to suit your new situation.
If you’re considering this path, it’s worth chatting to a finance professional to work out the best option.
Option 4: Payout the Lease Early
Another route is to pay out the remaining balance of the lease early. This includes all outstanding lease payments and the residual (balloon) payment. It’s a bigger upfront cost but might suit people with a redundancy payout or alternative savings.
You may also choose to sell the car to cover the balance — just keep in mind the payout figure needs to be settled in full before the lease ends.
So… What Should You Do?
Redundancy is tough enough without car finance stress. The good news? A novated lease gives you multiple pathways — whether that’s keeping the car, refinancing it, or handing it back.
The best option will depend on your finances, your job prospects, and whether your next employer offers novated leasing. If you’re not sure, we’re here to talk through the details.
Need help managing your novated lease?
Fleetcare can walk you through your options, help you re-novate with a new employer, or explore refinancing.
Contact our team or get a novated lease quote if you're ready to start fresh.
Because even if your job changes, your car doesn’t have to.
📞 134 333 | 🌐 info@fleetcare.com.au