Can Someone Else Drive My Novated Lease Car?
Yes, someone else can drive your novated lease car, but it comes with some conditions you should be aware of. In general, the primary driver of the car should be you, the employee who has taken out the novated lease. However, in most cases, your spouse, partner, or children can also drive the car regularly. Additionally, other family members or close friends may drive it occasionally, but this should not become a frequent practice.
It's important to keep in mind that novated lease agreements often restrict the car from being driven by anyone other than the approved drivers, such as yourself and immediate family members. If you allow someone who isn't authorised under the lease to drive the car and an accident occurs, the insurance may not cover the damages. This is a significant risk that could leave you with a financial burden. Furthermore, excessive use of the vehicle by unauthorised drivers could potentially be classified as a fringe benefit, which could lead to extra tax liabilities.
To avoid any complications, it's recommended that you carefully review your novated lease agreement to understand any specific rules or restrictions regarding who can drive the car. If you expect someone else, such as a family member or friend, to drive the car regularly, it's wise to inform your lease provider to make sure everything remains compliant with the terms of your agreement. By doing so, you can ensure that your insurance remains intact and avoid any unnecessary tax surprises.
In short, while you are allowed to let close family members drive your novated lease car, it's essential to exercise caution and adhere to the terms of your lease agreement. The car should primarily be used by you, and you should avoid excessive use by unauthorised drivers. Doing so will keep you protected from potential insurance issues and extra taxes.
Ready to explore novated leasing? Reach out to us today and see how you can make the most of a novated lease that works for you and your family!