“Motability” is a charity and should not make a profit, yet it has £2.4 billion cash stockpile and pays its boss £1.7 million a year.
Motability Operations, is actually a stand alone organisation, owned by four banks, and funded by a variety of sources such as the resale of vehicles on the scheme, issuing of bonds etc .etc ., and to be clear, ‘it does not receive any funding from the Government / tax payer’, and btw., any profits made are reinvested in Motability ,and not distributed ( to perhaps be wasted by some Government Dept or another ) so in effect, Motability profits are already working for us, by being used to keep costs down!
As an example, It’s bulk buying power allows Motability to negotiate far better deals with car manufacturers than individuals can get , and the same applies to insurance, servicing,repairs Etc and this alone makes it a fantastic scheme for the disabled, allowing them to contract hire a reliable vehicle ( or mobility scooter) very often at a low or even no advanced payment, in order for the ‘disabled person’ to become/ remain mobile.
The National Audit Office report on Motability says-
“The Motability scheme delivers an excellent service to its customers, earning remarkable satisfaction levels. Motability Operations’ management deserves credit for having turned the business around and inves ting in features that have enhanced benefits for customers.
Back to the point made, “There is nothing wrong with profit” – in fact it is essential to keep any business going – and remember, businesses employ people etc. etc.and this particular business provides us with a range of decent vehicles for ‘mostly’ very small deposits, or advance payments!
Even non profit making , or ‘not for profit’ businesses have to make a ‘surplus’ or will go out of business very smartly!
As a volunteer director of a ‘not for profit’ Credit Union , I can confirm that a ‘surplus’ is essential, not just for the business but for the ‘ Customer’!
FDepending on the business of course , some of the profit/surplus will need to be used for growing the business ( potentially employing more people, and in our case providing better choices ) maintaining the business, kept n reserve ( to cover
unforeseen eventualities ) and for covering upcoming increased costs , including staff salary rises etc?
Making profits/ surplus is essential , to keep Motability viable !