Remunerator News

Oct 27 2014

Storing your Novated Lease during trips

Although going away can be fun, it can also be very stressful, especially if you’re worried about the security of your Novated Lease. A person who has never gone on a trip before might think that they can simply take a cab or shuttle to the airport from home and leave the car as is, but it’s not that simple. You could be exposing your car to the dangers of theft, weather and mechanical problems. So it’s very important to keep your car safe when you’re on holiday and unable to protect it.

Here’s how to make sure your vehicle is protected while you are overseas:

 

Use a garage

If you choose to leave your car behind, the best thing you could do is store it in a garage, rather than just leaving it outside your house. A smart criminal will soon realise that you’re away if the car hasn’t moved for the last few days. Keeping your car in a garage will also protect it from the elements and keep it at a temperature that’s relatively stable. If you don’t use your own sheltered garage, you may want to consider renting one or asking to borrow a friend or neighbours, maybe even keeping it at a friend’s house.

 

Maintain Insurance

You might be tempted to cancel your auto insurance when your car is not used. Although that might save money in the short term, there is a chance that the insurance company will raise your rates due to the gap in coverage, which could cost you more in the long run. This can vary based on where you live and who your provider is, so contact your insurance company to see what options are available to you.

 

Fill up the tank

If you expect the car to be stationary for more than 30 days, fill the tank with gas. This will prevent moisture from collecting inside the fuel tank and keep the seals from drying out. Purchase a fuel stabilizer to prevent ethanol build-up and protect the engine from gum, varnish and rust. The fuel stabilizer will prevent the gas from deteriorating for up to 12 months.

 

Clean It Up

Water stains or bird droppings left on the car can damage the paint when left unattended for a few days, so imagine the damage caused by a few weeks. Make sure to clean the wheels and undersides of the fenders to get rid of mud, grease or tar. For added protection, give the car a coat of wax. Besides, it would be nice to come back to a clean and tidy car.

 

Declare Unavailability

If you choose to keep your Novated Lease at your workplace while you are overseas, you may be able to declare unavailability. Your FBT liability will be then reduced by any days deemed as being unavailable.

This will only be the case if you meet the following criteria:

  • The vehicle must be garaged on company owned or leased premises; AND
  • The employer removes the control of the vehicle from the employee (eg. holds the keys) and ensures the vehicle is not available for private use by the employee or a family member of the employee.

OR

  • The vehicle is being repaired and you do not have access for at least a 24 hour period.

For more information and to lodge your unavailability readings, download the Motor Vehicle Unavailability Declaration Form here