I’ve just taken a look at the invoice for our 3 series. Motability paid £24k, we put down an AP of £4k, so net cost to Motability £20k. Contributions for 3 years £9.8k or if extended for 5 years £16,263. That leaves a cost to Motability of £10,200 for 3 years or £3737 for 5 years.
Servicing, say £400 per year, Tyres £400 per year, Insurance £500 per year = £1300 per year.
That would make the cost to Motability of £14,100 over 3 years or £10,200 over 5 years.
Used car prices for BMW 3 series – 3 years old £20k profit £6k. 5 years old £17k profit £7k.
Not a bad earner really.