Thanks for the input. Dave surely the AP goes directly to the vehicle dealership, so this bares no relationship to the servicing, insurance etc, as that cost is attributed to the mobility scheme. The AP goes directly in the pockets of the dealership not the mobility scheme, as dealerships are achieving the maximum purchase price for the vehicle, I am assuming there is no shortfall in the finance to them to justify any AP? Am I missing something??
As Rox explains above, although the dealership collects the AP, it acting as the agent of Motability and it is passed onto Motability as the AP forms part of the overall finance agreement with Motability. Motability then pay the dealer a fixed amount for their services, plus a small amount for doing various administrative and back-office functions within certain timescales.
Some dealerships may (at their diescretion and expense) reduce the AP you pay by offering incentives/cashback deals etc. However they still pay Motability the full AP.
Dealers can offer these inducements to ensure they acheive overall bonuses from manufacturers for selling ‘xxx number of cars’ or pushing cars that the manufacturers want rid of (end of line etc). Or if the dealer has been left with a frustrated order and wants to clear it off it’s forecourt asap.
Whichever way they dress it around though, they still pay the AP to Motability.