Motability is a business, and like any other successful business will have built up reserves over the years ,the greater the reserves the stronger the business and the greater the protection from unplanned future eventualities such as the rapid demise of deisel engines, and the additional costs of EV’s
Not only is it prudent to have reserves, it sometimes is a legal requirement, and in the case of Motability Operations, we should all be aware that it faces the possibility of huge losses over the next decade, as the resale value of diesel cars falls through the floor – as we already know, electric vehicles come ‘ at a price’?
Motability Operations which run’s the ‘vehicle scheme ‘is a stand alone organisation, owned by four banks, & funded by a variety of sources such as the resale of vehicles on the scheme ( most funding up to now) issuing of bonds etc .etc ., and significantly, it does not receive any funding from the Government / tax payer, other than the receipt of the mobility allowance directly from the DWP, and which is the disabled customer’s choice to spend on a vehicle rather than anything else.
I quote directly from the annual report;
“We do not receive any grant or funding from government”.
There are bound to be skewed political opinions , from both sides of the political
divide, expressed in a topic such as this, where so much is reliant on politicians, and government input, but no government would want /dare to scrap the scheme purely for political reasons, so it is more than likely that as higher production reduces costs of EV’s just as it did with computers ,tv’s etc , Motability will still be operating.