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Several dealers have posted on Facebook and a customer service rep confirmed they were briefed at 4pm today.
As of 16th December there will be no opportunity to extend the lease for 2 years, even if you’re car has incredibly low mileage. Lease extensions will only be allowed for short periods usually as an opportunity to get the next car delivered.
For those who justified the expense as a 5 year lease or save up for the next AP and planned for 4 or 5 years to get the extra money for today’s higher APs Motability will not move on their decision.
This is purely financial as extra servicing and upkeep costs appear to be impacting profits. After last years losses, they’re clearly targeting massive changes to ensure retained earnings grow year on year.
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.Mark
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I wonder how robust their implementation will be though? Technically, 2 year extensions were stopped well over a year ago, but depending on who you speak to at Motability have still been possible for some people.
I also wonder if there will still be an exception for those with expensive adaptations?
Either way, it’s an odd policy as 2 year extensions must be highly profitable for Motability, given that they still charge the full benefits for years 4 and 5 and the bulk of the depreciation (the biggest cost with any new car) has already happened by year 3. Running costs plus depreciation in years 4 and 5 will be nowhere near another £8k, which is what they charge us.
I’d put money on the fact that this is more about them being put under pressure to support the struggling car industry, in the same way that they have been put under pressure to push EVs given that private buyers aren’t buying them and government targets aren’t being met.
Earlier this year I had a chat with Mobility they confirmed if my mileage is 20,000 or less they will extend the lease for another 24 months, I explained I may be slightly over that at the end of our 36 month lease, they confirmed as long as my mileage at the 33 mont time of extending my lease, if my mileage was 21,000/22,000 they would allow an 24 month extension.
My lease documents signed in August 2023 clearly states the 24 month extension, they there our changing the term of the lease.
or
This is mis information.
Eitherway they may be lining up for some very large increase in AP, knowing well that they have a captive audience.
Unfortunately I have suffered a brain injury and occasionally say the wrong thing.
Technically they can’t implement anything without changing the contract writing, which they are slow at. Those part way through the lease, would have to agree and sign the new contract or have the option of handing the car back penalty free, if they didn’t agree to the new terms!
Motabilty will also likely face backlash for their Drive Smart and intention to force it on those part way through a lease, when there’s nothing in the existing contract to say they should acept one.
For the bigges’t lease company, they aren’t half slack how they go about things.
Stupid question. If you reject the new terms and force Motability to take back the car, surely that can only result in you leaving the scheme?
Im struggling to find a legitimate way that the change to the contract was unacceptable but agreeing to a new one with the same terms you’ve just rejected is ok.
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.Mark
Stupid question. If you reject the new terms and force Motability to take back the car, surely that can only result in you leaving the scheme? Im struggling to find a legitimate way that the change to the contract was unacceptable but agreeing to a new one with the same terms you’ve just rejected is ok.
It’s not a stupid question, but I’ll try to explain. As @kezo says, a contract cannot be varied mid term unless both parties agree to it. By changing the contract without consulting us and giving us the option to agree or disagree with it, Motability Operations are themselves breaching the contract, not us. Therefore you wouldn’t be leaving the scheme. Motability would effectively be terminating your lease.
What they should do is to impose the 3 year max rule on all new leases, but this isn’t the approach that they took when they first attempted to remove the ability to extend (in a cack handed, hit and miss manner) a year or so ago. Our request for a 2 year extension was refused, until I pointed out the basic aspects of contract law to them, when they backed down.
All of our current contracts state that we have the ability to extend beyond 3 years and we have done nothing to break that contract. A new contract would be under different rules (3 years max) and therefore you would have to agree to those terms to stay in the scheme. So we would have agreed to the terms of both leases at the times that we entered into them. I hope that makes sense?
I strongly believe this is mis information, if they do try an impose a change in contract I will strongly challenge it, I have legal advice on my house insurance.
I have briefly looked through my ‘Terms and Condition’ the only clause relevant clause I can see is 5 pence per mile over 20,000 miles per year.
Unfortunately I have suffered a brain injury and occasionally say the wrong thing.
Stupid question. If you reject the new terms and force Motability to take back the car, surely that can only result in you leaving the scheme?
The important point I’m making is Motability are slow at changing contracts, but expect users just to go along with it! A prime example of this was, when they changed the lease extension last time and expected scheme users just to roll over and go along with them yet, Motability were successfully challenged.
A contract is a contract. Any changes to that contrat mid term, require an ammended or new contract signed by both parties. If you disagree with the new terms, you can leave penalty free – i.e with Motability, that means not paying the penalty charge to leave the scheme.
Im struggling to find a legitimate way that the change to the contract was unacceptable but agreeing to a new one with the same terms you’ve just rejected is ok.
As previously noted, any change of contract mid term requires both parties to agree and sign, it protects both parties – ie my current contract states I can extend for a period of 24 months. Motability can say all they trhey want online, but unless it is signed by the user in writing or digitally, it’s deemed my existing contract still exists in law, therefore I am in my right to say I have not signed a new contract, therefore my existing contract still stands and would standup in a court of law. In this case it’s in Motability’s interest to get me sign the new/ammended contract. As above, If I choose to disagree and not sign, I can leave penalty free, therefore protecting my interests.
My point is, (a) contracts are important to protect both parties (b) Motability, the biggest leasing company, yet for such a large company, do not see the importance of making sure contracts are upto date with end users, thus leaving themselves wide open, in circimstances you mentioned when a user loads a car with option, expecting to keep it 5yrs cus, there contract says they can and they have the right in law to challenge that!
Personally, I can’t wait untill Motabilty try to push Drive Smart on under 30’s and older family members who also drive the car – There contract does not say they may be required to have a black box and I expect, if a new contract is forced upon them, they will (especially those without adaptions) choose not to agree with the new or ammended contract and hand their car back penalty free.
Thank you gents.
I still think they’ll push this through as quietly as possible, which certain Motability specialists aren’t helping with, just to avoid this kind of reaction.
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.Mark
Thank you gents. I still think they’ll push this through as quietly as possible, which certain Motability specialists aren’t helping with, just to avoid this kind of reaction.
I agree, but by doing so does them no favours, which leaves them wide open. I find it weird for such a large company to act in this way imho.
All they have to do is send a text or email with a link or button to agree, but hey ho.
I think this discussion drifted away to changes midway through. The main point in my mind is that with ever increasing AP limiting contract to three years means higher costs to us, the customers.
Therefore more people may start looking for opportunities outside the scheme. Especially if you can charge vehicle at home, taking a used EV on PCP with 0% APR is no brainer in my mind (you can consult Dr Google on “0% APR used EV car”).
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Apologies for briefness and spelling mistakes.Motability Skoda Enyaq SportLine 85x April 2024 (unhappy customer - Ombudsman pending)
Motability Mazda CX-60 July 2023 (unhappy customer - early termination on mechanical grounds)
Motability VW Touran Family Pack May 2019 (happy customer)I think this discussion drifted away to changes midway through. The main point in my mind is that with ever increasing AP limiting contract to three years means higher costs to us, the customers. Therefore more people may start looking for opportunities outside the scheme. Especially if you can charge vehicle at home, taking a used EV on PCP with 0% APR is no brainer in my mind (you can consult Dr Google on “0% APR used EV car”).
Indeed, Autotrader, you can buy a Tesla Model3 for 16K or an Ioniq5 for the same with 25k miles. Tesla have more miles.
But they are cheap as chips and little or no servicing. A diesel or petrol car costs a lot more in servicing and mintenance.
I guess more people will jump ship, especially if they want to stick to a petrol car, which are being squeezed out.
I think this discussion drifted away to changes midway through. The main point in my mind is that with ever increasing AP limiting contract to three years means higher costs to us, the customers. Therefore more people may start looking for opportunities outside the scheme. Especially if you can charge vehicle at home, taking a used EV on PCP with 0% APR is no brainer in my mind (you can consult Dr Google on “0% APR used EV car”).
Not really, it points out the importance of contracts for both parties and Motability’s insistance of pushing these changes through quitely, especially those im mid term contracts, though I agree with everything else.
Hopefully Motability will do the correct thing this time (unlike when they attempted to remove 2 year extensions last year) and apply the change to all new contracts, rather than contravene contract law by applying the change retrospectively to existing contracts.
It will be interesting to see whether or not the wording changes in new contracts taken out over the coming months.
The wordings in there term and conditions change, our August 1st term states 5 pence per mile over 20,000 miles per year, also 24 month extension subject to terms and condition, in the terms there is nothing regarding maximum mileage, just your responsibility to Mobility.
Unfortunately I have suffered a brain injury and occasionally say the wrong thing.
The normal lease is 36 months, with the possibility of e tending it. Its not a right.
Cars lose a lot of money from years 3 through 5 and a
So more expensive servicing and tyres. If Motability encounter higher losses, then as a private company , they cannot be expected to absorb them.
My contract clearly states 36 lease which can be extended a further 24 months subject to term and conditions. There is nothing in my terms and condition stating I cannot extend only if I fail in my duty to uphold my part of the contract.
The original post is only Facebook hearsay not fact, servicing cost and tyres cost are minimal compared to 2 years incoming payments of £8,013.20, The majority of the losses are within the first 12 months.
If Mobility go down this route for new lease the scheme will become less atractive, there are those including myself may look outside the scheme.
Unfortunately I have suffered a brain injury and occasionally say the wrong thing.
The normal lease is 36 months, with the possibility of e tending it. Its not a right. Cars lose a lot of money from years 3 through 5 and a So more expensive servicing and tyres. If Motability encounter higher losses, then as a private company , they cannot be expected to absorb them.
Somebody on PIP extending for 2 years is paying £8,000 for the privilege. I’d put money on the fact that servicing and tyres for the average Motability car over those 2 years is no more than £1,000. That leaves £7,000 for depreciation, but I’d also bet that the average Motability car depreciates by far less than that in years 4 and 5, given that the bulk of the depreciation will have already happened before the lease extension. These reasons are why I consider lease extensions to be poor value for the customer and a nice earner for Motability!
As previously stated, if this happens I’m convinced that it’s far more about Motability being under pressure to support the UK car industry, which is struggling as private customers aren’t switching to EVs in the numbers required and people are keeping their cars longer. The average age of cars on U.K. roads has just exceeded 10 years for the first time.
As previously stated, if this happens
In my lease (signed last thursday) the provision to extend the lease was removed.
So, it’s not “if” or “when”, it already happened.
Prior: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19, VW Golf GTE PHEV DSG MY23
Current: Hyundai Ioniq 6 Ultimate
Next: we'll see what's available in 2028.As previously stated, if this happens
In my lease (signed last thursday) the provision to extend the lease was removed. So, it’s not “if” or “when”, it already happened.That interesting, in May 26 according to my August 2023 signed contract I had the option to extend my lease an addition 24 months, if they play hard ball I will go private.
Unfortunately I have suffered a brain injury and occasionally say the wrong thing.
“Ability to” does not mean a right
Both sides must be in agreement to the contract terms – otherwise there is no contract. That means, on the date you sign the contract, you are bound by the contractual tems and conditions set out within the contract.
It does not in any way mean, you are bound to future tems and conditions untill “both” sides agree to the new contract terms.
Looking at @Oscarmax ‘s contract:
“My contract clearly states 36 lease which can be extended a further 24 months subject to term and conditions. There is nothing in my terms and condition stating I cannot extend only if I fail in my duty to uphold my part of the contract.”
Up until “both” sides agree to the new contract T&C’s, his current contract legally states Oscarmax can extend for a further 24 months, unless he breaks the contractual T&C’s in some way, no matter how may times Motability choose to changes the terms, only will it become binding, if “both” sides agree to the new terms.
edit: @Oscarmax
That’s why.
Our contract is bound to the 9/24 TCs. In those terms and conditions, the paragraph doesn’t exist (and i remember that paragraph because we considered extending the Golf – which had older TCs).
So you, legally, should be able to extend if you fulfil the conditions laid out in your contract (mileage etc).
From this point onward, no new lease will be able to extend.
Prior: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19, VW Golf GTE PHEV DSG MY23
Current: Hyundai Ioniq 6 Ultimate
Next: we'll see what's available in 2028.That interesting, in May 26 according to my August 2023 signed contract I had the option to extend my lease an addition 24 months, if they play hard ball I will go private.
You signed your contract in 2023, @Rene last week, so he’s bound by the terms in his contract, which is different to the term in yours.
Options do not mean you have the rights, both parties need to agree.
ie , you request , they agree or not
Options do not mean you have the rights, both parties need to agree. ie , you request , they agree or not
I confused mate!
Both parties agree at the time of signing the contract, which allowed a 24 month extension pre Sept 2024. Up untill both parties sign a new or ammended contract, the original contract remains in place.
The contract was updated Sept 2024, not to allow extensions, so any who signed during or after this time, will be bound to them, thus cannot ask for a lease extension, simply because the contract doesn’t contain the option to.
Whats, so difficult to understand this?
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