I don’t think motability will fold, they make far too much money for that to happen.
I agree. There’s zero chance that they will fold. If anything, with so many people extending leases, their profits will be going up, not down. Those who have the ability to source cars through other means than Motability will steadily leave the scheme, but will be a small percentage of the customer base and will probably be offset by those drawn to the scheme by the TV ads.
I fear that the only way that things will improve significantly is if Motability lose their monopoly and new entrants are allowed into the market with the same block VAT exemption, so that they can compete on equal terms. The government sponsored review into Motability suggested that this should be considered, but they suggested a lot of other improvements as well (e.g. greater choice of larger vehicles) and nothing has happened. Only one recommendation from that review has been implemented and that’s the issue of targeting the two-thirds of eligible benefits recipients who choose not to join Motability. That benefits Motability Operations, not customers, as it will generate yet more profit. Not a single recommendation that would benefit existing customers seems to have been given an ounce of air time. Funny that.