What is 'Novation'?

Well I for one had no idea about what novation was and how it worked until someone asked me what my husband did. I told them he was in the novation business.. but then they asked me to explain... I 'um'ed and 'ar'ed for a bit, then said it had something to do with selling cars. Wrong!!!! When I told him about the conversation he was particularly unimpressed and he sat me down and explained in detail why he wasn't a car salesman.

Apparently car novation is to do with financing cars - but in a way which is very beneficial to the purchaser. You can actually go out and find the car you want yourself. Make the deal, do the sale etc., and then get in touch with a novation company and they can 'salary package' it for you. You can make payments for the car, insurance and even petrol costs in pre tax dollars! Cool... who would have thought! So much to learn, so little time...