as we all are seeing big advanced payments, is time motability help us with advanced payment over the 3-5 year lease.so we pay monthly.trying to find this kind money is worrying with other living responsibilitys.living within your means and what you actually need can be very different.for me personally I need large estate car as both me and the wife are both in wheelchairs.and these cars, when there on the list are nearly £4000 adp.
I don’t think Motability’s business model can work like that. What you are in effect doing is asking Motability to give you a loan to cover the AP.
Whilst Motability hold a Financial Conduct Authority licence, it is only for specific activities and product types. It is not licenced to give loans (or operate as a bank or conventional finance company):
https://register.fca.org.uk/s/firm?id=001b000003IK9puAAD
Also, as it stands, Motability are guaranteed their payments – from the customer paying the AP in advance of collecting the vehicle, then by the direct payments from Veterans UK/DWP.
Even if they varied their FCA licence to permit customers to in effect borrow from Motability puts risk on Motability. The customer may not pay the loan off over th e course of the lease or stop paying mid-lease. This sort of thing would have to be priced in (usually by paying punitive interest).
Would Motability like the negative PR of re-possessing disabled people’s vehicles if they stop re-paying this loan? Also, what would happen should the vehicle be written off with the ‘AP loan’ still outstanding? The customer would be in an even worse position going forward unless they had taken out (usually expensive) Gap insurance to cover this sort of event.
Also, institutions that (legally) make loans have to be ‘Responsible Lenders’ – they would be duty bound to do affordability checks – basically a credit worthiness check. Not wishing to be condescending, but I believe a percentage of Motability’s client base may not pass these checks.
Probably the correct way to achieve your aim, would be for the customer to save during the current vehicle lease to pay the AP of the next vehicle and so on onwards. If people cannot afford to save like this, how would they be able to service any loan they have taken out to cover the AP anyway? A paradox indeed!