Motability negotiate directly with manufacturers and get a healthy discount.
They also do not pay VAT.
So a £30k car is already about £24k.
Motability set the AP based on what they think the possible shortfall between what the car stands them at and what they estimate it will sell for at auction after 3 years with 60k miles and in average condition.
Because the majority of customers do far less than the 20k annual mileage allowance and take very good care of the cars they invariably sell for more than they account for and that’s where they make so much profit.
If I seem a little strange, that's because I am.
Skoda Karoq SEL.