My May 2021 Citroen C4 1.2 155 Shine Plus EAT8 I had it for just shy of 4 and half years done just under 27,000 miles. All it had was 4 services, 2 MOTs and 4 tyres. On The Road Retail Price When New Dealer 1st registration. Fee etc £27,605 Price without VAT £22.150 Went through Wilson’s Auctions last week I don’t know how much for but a guide Cap Clean Price was £11,800 Now a car dealer in Cwmbran has it up for £14,895. I also paid £1.195 advance payment on it. so I don’t think Motability done too bad out of my lease extension.
Taking your figures and coming up with an educated guesstimate;
If the ex VAT price was £22k, I suspect that Motability Operations, with their huge negotiating power, paid no more than £18k ex VAT for it.
Let’s say they got just £10k for it at auction after fees, that’s a depreciation hit of £8k.
The services, MOTs and tyres were probably no more than £2k total. Your share of insurance etc over 4.5 years (again, with huge group buying leverage) was probably no more than £1k.
So, in total, the car probably cost Motability Operations about £11k (£8k + £2k + £1k), but you paid them £19k to lease it (4.5 years @ £4k sacrificed benefits = £18k + £1k AP), so a net profit for them of £8k.
Even if some of my figures are a bit out, as you say, there’s no doubting that they made a tidy sum out of you!
