Lets look at the MB scheme…
1) Dealers and manufacturers potentially lose money on every car. Why? Because MB agree at residue value at the end of the lease, then add a % of your pip payments this equals what MB pay for the car. The manufacturers use the initial payments to basically manage demand for a model, or to clear stock and/or minimise the difference between what MB pay for the car and what they are willing to sell the car for. If you don’t add extras etc there is zero profit potentially. The dealer gets paid a set amount that doesn’t cover costs Im led to believe. End of lease car goes to auction if the amount is higher than the agreed value this funds the MB scheme. So if cars don’t goto auction the funding drys up.
2) Higher rate DLA was a joke and too many people were abusing the system it had to change. PIP was the answer but it’s a joke in itself. The mobility requirements have been badly thought through especially. But you have to question why so many award appeals get upheld? People need to get smarter when applying! Find the assessor’s guidance notes online for each question and use the same phrases, examples and language when completing the form. We did and went from low DLA for car, high DLA for mobility to high on both for PIP.
3) Allowing lower rate Mobility PIP on the scheme would just result in much bigger initial payments.