The AP on more main stream cars is creeping into the £3000+ range so what should motability do? Should they reduce the cap, and therefore our choice, (at least initially), to say £2000 forcing many top of the range cars off the scheme in the hope it makes manufacturers revisit their prices. Or should motability increase the cap to allow more cars access to the scheme?
The problem is if the cap were to be increased, advance payments would go up further as more expensive cars would be offered. The tail (cheapest cars) would follow the head in rising to keep them in proportion with the head and you simply create an even greater inflationary cycle on advance payments (particularly with allowances used to fund the scheme falling behind ‘real’ inflation).
Having the cap in place at least keeps the cheapest models cheaper albeit I do agree it limits choice at the top end.
Motability really are caught between a rock and a hard place on this subject.