In regard to Q4 Pricing, there is a chance, and this would take a progressive outlook from Motability, that Advance Payments could reduce for Q4. Second hand values are at unprecedented levels and for Motability to take advantage of these they need to get people to order a new vehicle, with the option of adding new vehicles to the Scheme very limited, the only option left is to entice customers by offering a reduced level of Advance Payment.
I wish!
It does make sound business sense to take advantage of any opportunity in the market to enhance profits overall, and selling off 3 + year old vehicles ( which at that age are likely to be starting to cost them money ) for a greater amount than they would have received previously is clearly one way of achieving this.
As you indicate, this in theory would allow Motability to use this enhanced profit to reduce other costs , including AP’s, ‘ BUT, ‘ yes but I’m afraid, I wonder if they would look at the overall picture ( have they come close to no profit during the period of the pandemic , and need to get this back on track first .) or would / even could they plough any excess over projected returns back into individual AP’s?, and then there is the conundrum ‘ which vehicles / manufacturers get the advantage?