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Just my observation
Is it me, or do people think Motability are increasingly placing new conditions on their leases, which may make people think twice……
I know it’s( Motability Operations)a private profit making company with some profits going to the Motability foundation as charitable donations, but recent accounts show little (£200k) annual donations , which isn’t even enough for 3 complex WAV’s.
Do people think the Foundations future desired philosophy is only to provide and fully fund WAV’s and required mobility adaptations to standard cars, with the Foundation only supporting grants for the same, ie Little or no grants available for the provision of standard unadapted vehicle Advance Payments.
Increasing AP’s and removal of automatic lease extensions, stricter GCB requirements, strict adherence to early termination fees, increased insurance excess , seems only the start….
Still think it’s a very cheap way to drive a new car, if that’s what you desire. One which may may take up when our current used car no longer is fit for ou requirements, ie if adaptations become required.
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It will become politically charged chat very quickly, in my mind.
- People and businesses have less money to donate to charities.
- National insurance payment went up
- Inflation went up hence I would assume the salaries Motability pay
- EV market doesn’t pick up as expected
- Insurance on EVs are significantly higher than on ICE (at least a small number of people I have spoken to recently).
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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)Yes
My observations as well.
I think most insurance companies are too quick to write off cars as its easier and no comebacks. The policyholders simply pick up the increased costs. Direct line is probably no differant.
Motability employ over a 1000 staff and as you say , all the increases must be paid from somewhere. I would expect the majority of their staff are on or near minimum wage. That in addition to Direct Line Staff, garage mechanics and staff, Kwik fit staff, RAC staff and all the items and services they purchase from othsr compqnies.
Not sure everyone were awarecof the implications of increasing the minimum wage, plus associated increased employer pension contributions and national insurance. It actually increases the cost of every service and every item we purchase.
Motability Operations (formerly Motability Finance Ltd), owned by four clearing banks (Barclays, Lloyds Banking Group, HSBC and NatWest Group), operates on behalf of Motability.
EV investment totalled £57.7m, up from £19.6m in 2023. Some £265.5m has been set aside to subsidise prices for 98,000 customers.
In my view, the rope will continue to tightened beyond the recent loss of automatic lease extensions, tightening of the GCP. AP’s will rise, moreso for ICE, as MO battle with the effects of sharp down turns of residual values, especially with the volatilty of the used EV market. Gains from end-of-lease disposals during 2024, saw massive drop from £420m in 2023 to £8,9m in 2024. However, the governmemts targets in EV sales, also weighs heavily on MO. Despite this a 24% increase in revenue was seen in 2024, as more joined the scheme.
Inflation rises, means worker are paid more, which is no exception to Motability staff, CEO’s of of both the Motability Foundation and operations, still command huge salaries and bonus, even though it’s less than previous years.
The switch from RSA to Direct Line, was perhaps the wrong move. Needless to say excess is increasing and there’s more reluuctance from the insurer to want to repair more minor damage, which also as an advantage to the scheme users.
Over the next couple of year’s or more, I think we will see those who don’t require adaptions and those that need less intensive adaptions, be the first to jump ship, as lease prices become similar in cost to PCP deals or those that have the money buying second hand. Then there are those that don’t prticularly want an EV, who will jump in the coming years, with Motability existing for more niche users.
@pazlaz Whilst your comments about the impact of NI and the living wage are quite correct, your assertion that most Motability Operations staff are at or near the minimum wage is way off. They pay extremely well (far ahead of most other call centres) and have extremely generous benefits and bonuses – all of which we are paying for!
I would expect the majority of their staff are on or near minimum wage.
You expect wrong.
For reference, their London office is at 22 Bishopsgate. Just have a look at the building.
The lowest paid position makes 30.5k (basic customer support agent) – that’s 22% above minimum wage for full time employment. Most incomes reported actually are 33.1k (for customer experience specialists), which is 32% above minimum wage.
MB pays their staff extremely well.
edit: this pretty much says it all.
That’s a pretty insane number.
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.Keto
Could it also be that the government is forcing Motability to push EV’s to increase the government transition figure as Motability leases account for 1 in every 5 new car registrations in the UK.
The government could if they wished to, bring the vat exemption in line with that given to privately bought vehicles for disabled people. Its very restrictive.
1. Vehicle must be significantly adapted for the recipients disability. Minor adaptions do not qualify for Vat exemption.
2. The exemption can only be requested once every 3 years.
The government would gain perhaps on average £6k plus for every non significantly adapted vehicle. Say 160,000 per year ( from the overall 220,000 leases each year)forc every non significantly adapted vehicles would give Mrs Reeves some £1 billion in extra vat receipts every year.
Keto Could it also be that the government is forcing Motability to push EV’s to increase the government transition figure as Motability leases account for 1 in every 5 new car registrations in the UK. The government could if they wished to, bring the vat exemption in line with that given to privately bought vehicles for disabled people. Its very restrictive. 1. Vehicle must be significantly adapted for the recipients disability. Minor adaptions do not qualify for Vat exemption. 2. The exemption can only be requested once every 3 years. The government would gain perhaps on average £6k plus for every non significantly adapted vehicle. Say 160,000 per year ( from the overall 220,000 leases each year)forc every non significantly adapted vehicles would give Mrs Reeves some £1 billion in extra vat receipts every year.
For VAT exemption on a private vehicle the person also has to be a wheelchair user (and not just an occasional one).
The block VAT exemption is what makes Motability competitive. If they applied the private purchase VAT exemption rules then I’m guessing that the overwhelming majority of current customers would become ineligible. The scheme would collapse.
Pazlaz, cut out the midleman an go for Andrew Millars job, see how far you get.
Pointles nonsense and pipedreams of despair, or perhaps boredom.
It is really an observation of nothing.
It just gives the Walter Mittys sonething to dream and moan about if they were King, or Prime Minister, and how they woud set the World to rights. But its really nonsense.
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