A year ago I started a new job and needed a car, my employer suggested a novated lease. I was made redundant last week and now they are saying the car is in my name so I have to keep making the repayments. Is this right… what are my options?
That is what Novated means, you own the car and as long as you work for the employer they will pay the monthly lease.
This isn’t understood by too many employees and a lot come unstuck.
Employers like them for exactly this reason, they aren’t locked in and it isn’t on their balance sheet as a debt.
I would suggest that you contact the leasing company and see where the balance is up to. You may be ahead due to underspending that could give you a month or two respite while you look for a job.
I wish you the very best
Sometimes there's also a built in redundancy benefit in your lease agreement where they may cover the repayments for a period of time. Check with your lease company.
But as Scott has said, the car is yours and the liability to make repayments resets with you unfortunately.
All the best.