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Novations: Transferring a Lease Vehicle from one Limited Company to another Limited Company

Photo of Donna By Donna
17th April 2025
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How does a Novation work?

Why would a Novation be required?

One of the main reasons for a novation is when a company has been bought out by another, and the assets need to be transferred across.

Mark Smith
Director - Nationwide Vehicle Contracts

What is the criteria for a Novation?

Can anyone request a Novation quotation?

What are the advantages of a Novation?

Advantages of a Novation:

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No early termination fees

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Known vehicle history

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No initial rental fees

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Contract parameters stay the same

What are the disadvantages of a Novation?

Disadvantages of a Novation:

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Case-by-case consideration

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Eligibility restrictions

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Time-consuming

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Admin fees apply

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Check responsibilities

Want to know more about novation?

Guide Information


Originally published: 21st June 2016
Last updated: 17th April 2025

Photo of Donna

About the Author: Donna Kelly

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