I used to have a mini, but would be fairly reluctant to go back to them after 4 years of fights with them over the entertainment system (2 year fight in 2014) and a 2 year fight 2019-present. Motor Ombudsman finally agreed with me though and we are in the middle of sorting it out.
I’ve been playing around with a calculator, having been on the scheme and tracked my old cars through the disposal process….and looking at Motability books – on average each car nets them £3500-£5000 profit variable over differing years.
Based on a £37K Audi A5 Coupe, and Audi giving motability a 14% discount
(Vauxhalls are as high as 55%, Seat at one point was 8% flat across the range, bmw from memory 21.5% discount.)
I’ve also not factored in the Annual uprating on PIP so figures are not 100% accurate.
And an assumed, predicted retained value percentage taken from a few different sources like parkers etc.
And an assumed operating cost (taken from motability annual report) and divided between 630K customers…
Audi A5 Sport
Retail Price £36,970.00
Discount Rate*1 14.00%
Discount Amount £5,175.80
Less Discount £31,794.20
VAT £6,358.84
Less VAT £26,495.17
PIP*3 £9,703.20
Less PIP £16,791.97
Advance Payment £3,000.00
Less AP £13,791.97
Net Operating Cost*4 £4,250.00
TOTAL NET Cost £18,041.97
Retained Value (%)55.40%
Residual Value £21,627.45
Profit/Loss £3,585.48
I’m going to be playing around more with the calculator to see if i can get a predicted AP right come change over on the quarters.