I think certain people on this forum totally miss the point. Some people on here have forgotten that not everyone can go elsewhere as I’m sure they would if they could. Also, Motability make massive profits from running the scheme so it is overpriced.
Elliot,
You seem to be overlooking the fact that (and I quote from Motability Operations official website):
all profits are reinvested to support customers or donated to Motability to support solutions for disabled people.
Obviously, the business has to make some ‘profit’ on leasing vehicles and wheelchairs etc in order to pay its overheads, staff costs, insurances etc. The rest is given in customer support and donations to the charitable arm.
Surely you cannot be advocating cutting the support or donations to the charitable arm in order to reduce your Advance Payment? Doing so would hit the poorest and most disabled who either need a grant towards the advance payment of a suitable car, or need hugely expensive adaptions/WAV’s, or to fully fund vehicles for under 3yr olds. You would be hurting the people who need the help most!
In all these negative posts about the scheme, some people seem to be overlooking such as:
The increased GCB to £600 (or £700/£900 on extended contracts).
The £50 Insurance Rebate from RSAM
How much damage Motability are prepared to ‘write off’ on returned vehicles compared to a commercial leasing scheme.
Free or subsidised adaptions such as hoists etc
None of these occur in a commercial scheme. Plus, Motability is a complete package – all you really need pay for on top of the lease is fuel.
Yes, we would all like a nice top of the range car, but just as for many non-disabled people, one has to cut one’s cloth accordingly and not get what is ‘nice’ but what ‘does the job’.
Do not overlook that in paying one’s allowance to Motability, that allowance only rises by CPI every year, which is the lowest metric the government can get away with. It lags way behind actual inflation and is based on a low amount anyway (either £62.25 or £69.50 per week). It does not keep pace with the cost of the vehicles or anything else in reality.
Thus, the only way Motability can function as a company with its obligations, is to negotiate with manufacturers and attempt to offer the best possible range of vehicles at the best possible prices.
If manufacturers for whatever their reason wish to not give Motability a discount or larger discount this quarter, Motability has to reflect that in its pricing. Also the end value at 3yrs old also has to be taken account of – some vehicles drop like a stone depreciation wise.
Sure, the scheme has its faults, and the pricing cap is one of them. However, any cap increase would lead to more choice but potentially at even higher advance payments as the vehicles would be even more expensive.
I feel that perhaps a little more could be done to reduce the advance payment of many automatic vehicles on the scheme. However, imagine the outcry if the price of manual vehicles were increased to cross subsidise automatic vehicles. If they knocked £100 off each automatic vehicle that money would have to come from somewhere – probably the amount donated to the charitable arm. There is no easy solution to this one.
Hopefully, the executive pay scandal of recent years has been ironed out with the new incoming CEO at Motability Operations helm. However, CEO’s/CFO’s of businesses this size do not come cheap. They should be paid an amount commensurate with their responsibilities in order to operate the scheme and safeguard the longer-term future of the scheme. Not the over generous rates and hidden bonuses that became a feature of the previous regime.
So, yes Motability does have its faults. However, they have to work with what they have and/or what they are given. I am sure they do not increase advance payments just for fun or just to make its customer base struggle financially.
It is a harsh world out there in business currently and it is set to get harder. We are on the cusp of a huge recession with many people losing their jobs (and potentially their homes). I suppose it will be an ill wind in that it could lead to cheaper AP’s as vehicle manufacturers struggle to sell new cars in a recession. But what will be the cost to the UK as a whole.