If our only option is to extend leases shouldn’t we be paying less as we are now leasing 3 or 4 year old cars?
That’s a very good question Ed. I agree and that’s why I’ve never done a lease extension myself. It’s a very good deal for Motability but a poor one for the customer. £6,500 additional sacrificed benefits (only partially offset by a few hundred pounds more GCB) to drive a car that’s 4 or 5 years old.
Motability, on the other hand, benefit from having no capital outlay on a new car, significantly less depreciation (as we know, most value is lost in the first 3 years, so a new car will cost them far more than a 4/5 year old one in that regard) in return for one or two services, MOT (which they would have to do anyway to sell any car) and a few tyres! As several of us have pointed out, the current situation with poor choice and lots of people extending their leases is a win-win for Motability.