The issue is many fold.
First of all the great diesel scandal has destroyed the derv second hand car markets,
secondly, the Covid 19 situation, manufacturers have had to implement social distancing in the production lines, which has caused a slowdown in track speeds, with less people on the line, add to that the same issues in the suppliers of speed and social distancing
the manufacturers still have the same fixed costs, they have had to reduce staff by redundancies too and that also costs.
same for the franchises, especially those that have lost a lot of sales this year.
add all tgese together, tgen Motability are hit with a perfect storm
higher car prices, and a reduction in the resale value of car currently on lease.
they work out the AP from:
Cost of buying the car, cost of insurance, servicing and tyres.
vs
the amount they will get in PIP payments over three years
tge amount they can sell the car at the end of the lease (residual value)
whats left makes the AP, which also has a maximum of £3,750
so, they either increase the AP as much as they can and/or reduce the specifications available.
if you notice, the larger, higher spec cars are reducing as well as the engine power
just a fact of life