Salary Sacrificed Car and Changing Jobs

AussieDolphin on 17/04/2019 - 18:55
Last edited 17/04/2019 - 19:21 by 1 other user

Hello Ozbargainers,

I currently work in education and last year I salary sacrificed a car under a 5 year term. I believe it isn't an option that is available to everyone in the workforce.

Due to circumstances within my family, I am having to look for another job outside of working for the government. This means that I won't be able to salary sacrifice my car if I get something in the private sector or in a different line of work altogether. I am worried about how this will impact me financially. I need the car as we live in an area that is poorly serviced by public transport.

If you have been in this or a similar situation before is there anything I can do to not suffer financially because I need to change jobs while the car is linked to my job with the government?

• 

  Ocker on 17/04/2019 - 19:11

  +1

  Best you go and see an accountant

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  oscargamer on 17/04/2019 - 19:29

  +1

  Talk to the provider of the car loan.

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  IVI on 17/04/2019 - 19:33

  You got, maybe, a Contract on this deal…?

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  elgrande on 17/04/2019 - 19:53

  Not sure if you are with Maxia, but from their website:

  What happens if I change jobs during the lease term?

  With people changing careers more than ever, this is a likely scenario for many people. But you have a number of options available, including:

  • paying the amount owing and buying the vehicle outright
  • continue paying the lease and running costs yourself (with post-tax dollars)
  • transfer the lease to your new employer (subject to your new employer's approval)
  • 

    Imhereforcomments on 17/04/2019 - 20:17

    Yeah, this is the options for all leasing providers. It's up to your new employer if they allow staff to salary sacrifice. A lot of private sectors allow it but your not getting much fringe benefits as you would for health/government/non for profit.

    Worst case scenario if your unemployed or employer does not allow novated leasing then it will turn to a standard finance conract and you will need to pay the financier the monthly minimum lease payment back.

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  spackbace on 17/04/2019 - 21:45

  +1

  Personal unsecured loan to pay off the lease then continue as normal?

  Are you still moving to Perth? What's goin on?

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  wannagrababargain on 18/04/2019 - 09:51

  +2

  Are you asking how to finance a car outside of a lease or are you asking how changing jobs with an existing lease will impact financially? or both?

  Generally it is really bad financially to convert the novated lease to a 100% after tax lease as you'll suddenly lose all the pre-tax benefits and be paying an exhorbitant lease with post tax dollars. Paying out the lease can also be very costly especially at the early stages of the lease. You are only 1 year into the lease so financially speaking you have barely paid off any principal on the finance component. Depending on your contract terms you could be up for a hefty sum (possibly more than the value of the car).

  The third option is handing the car back if your contract allows. Does your lease contract have an "Early Return Gaurantee"? If so easiest option might be to exercise this option (if available) to hand the car back for the nominal fee so you get out of the lease. Then at your new job you find a new car. Many large private sector companies offer a car salary sacrifice option.