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Looks like more increases on the AP coming 🤔☹️
https://www.autocar.co.uk/car-news/consumer/motability-takes-%C2%A3565-million-blow-costs-soar
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As a result, the firm said the increases in its costs will result in new customers paying higher advance lease payments. Currently, this is set at £750.
If only…!!!!
Outside it’s artificial bubble, Motability is susceptible to market trends, especially with the volatilty of the used EV market. Three year old EV’s are seeing a depreciation of 60%, holding on to a residuale valuse of just 40% , which is unprecidented in the modern day car industry.
Since the push to electric, Fully EV’s, as of January this year, still only account to around 4% of c34million cars on UK roads. The private buyers market has remained relatively flat, those that initially dipped their toe’s in at the beginning, is not seen anymore, which leave’s the lease market, by far the larges’t majority of buyers to pick up the pieces and to take the hit, when it’s time to move them on.
The ZEV mandate, just like carbon offsetting where it suites are some of biggest con’s going, putting european manufacturers under immense pressure to stay profitable. China even with tariffs applied is laughing!
To compound this our Rach from accounts is going to apply VED to EV’s. Whils’t I’m a strong believer all road derived, should pay VED, it’s a further kick in the teeth for EV owners, which won’t help sales.
Please stop scaremongering. That article is rubbish.
Motability generated some loss due to incentives (£750 pay outs, free ev chargers, grants – ) and drop in resale value. You may remember Tesla cut prices by 20% couple of years ago that had a knock on effect on used EV prices. Also insurance went up a bit.
BTW Motability has 4 billion (!) pounds in capital reserve (i.e. cash in the bank) so far from going bankrupt. 😀
Re other costs Motability vehicles are exempt of VED and VAT…
I don’t understand this sentence at all. Are they trying to say that we all pay no more than £750 towards a car?!
(As a result, the firm said the increases in its costs will result in new customers paying higher advance lease payments. Currently, this is set at £750.)
I took that as saying, new customer will now be paying £750 higher AP, due to the discontinued £750 NVP, which effectivly reduced AP’s by £750.
Please stop scaremongering. That article is rubbish.
Autocar typically mirrors the links you have provided on pre tax loss compared to last year. Some go into more detail but, the results are the same!
Please stop scaremongering. That article is rubbish. Motability generated some loss due to incentives (£750 pay outs, free ev chargers, grants – ) and drop in resale value. You may remember Tesla cut prices by 20% couple of years ago that had a knock on effect on used EV prices. Also insurance went up a bit. BTW Motability has 4 billion (!) pounds in capital reserve (i.e. cash in the bank) so far from going bankrupt.
#Al3xT please explain how I’m scaremongering and that the article is rubbish when you’ve gone and posted links to 2 articles saying the same thing?
Also nobody mentioned anything about Motability going bankrupt so… 🤷♂️
FYI I seen the story on Face ache so thought it might have been of interest to people on here
As keso says:
the EU/ UK globalist EVangelists attempt to enforce their proposed unachievable net zero utopia by firstly offering huge subsidies, now withdrawn, tax subsidies- some withdrawn from April- and finally the draconian and punitive ZEV mandates. China, supplier of 80% of solar panels, turbine blades and batteries to Western manufacturers, produce cars at less than half European manufacturing costs. Even with tariffs, it can undercut VW etc. The icing on the cake is with EV only sales, it sells EV credits to VAG etc. to meet the self imposed ZEV targets. You couldn’t make it up and we are truly governed by idiots from both main parties. Across the globe, customers are voting with their feet and MB is paying the price of disastrous second hand values, high insurance and repair costs. APs will only go up, sadly.
on a brighter note, VAG have finally seen the light and listened to customer feedback. Better late than never, but not for me.
Sorry, my post was a bit blunt. I did not mean to be rude.
The 2024 loss is largely due to one-off non-cash adjustments (such as revaluation of used car values and depreciation changes) rather than a decline in core sales performance. When these items are removed, the “underlying” pre‑tax loss shrinks to about £130 million, a much smaller figure that would be more favorably viewed against the backdrop of increased sales and revenue.
Long story short I don’t think this will have any impact on AP.
As has been correctly pointed out in the above post, this ‘loss’ is primarily an accounting adjustment, due in most part to the inevitable correction in residual values that had resulted in inflated values in the immediate years following Covid, plus the disastrous residual values of EVs which Motability have been pushing. The CEO and COO both received six figure bonuses, which would not have happened if the groups financial performance was deemed to be of concern.
Whilst the correction in general residual values is behind us now, the used EV market shows no sign of improvement. As a result, whilst Motability continue to push them, I fear that the impact will be a continued upward movement in APs for everyone. In fact, Motability have been telling their major dealer principals that APs will continue to rise due to their increasing exposure to the residual value problems in the EV market.
Please stop scaremongering. That article is rubbish. Motability generated some loss due to incentives (£750 pay outs, free ev chargers, grants – ) and drop in resale value. You may remember Tesla cut prices by 20% couple of years ago that had a knock on effect on used EV prices. Also insurance went up a bit. BTW Motability has 4 billion (!) pounds in capital reserve (i.e. cash in the bank) so far from going bankrupt.
#Al3xT please explain how I’m scaremongering and that the article is rubbish when you’ve gone and posted links to 2 articles saying the same thing? Also nobody mentioned anything about Motability going bankrupt so… 🤷♂️ FYI I seen the story on Face ache so thought it might have been of interest to people on here
Ah if its on Facebook it must be true!
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