The scheme choice will improve when one, or both of the following happen –
1. Manufacturers lower the price they sell cars to Motability.
2. Motability Operations pay a more realistic price that’s closer to manufacturer’s asking price.
Reasons how/why this might/might not occur –
1. Economic situation worsens and people can’t afford to buy new cars. Production ramps up. I think this will happen somewhat, but it looks like manufacturers will be cutting back on mass production and aiming for lower output and higher price cars.
2. Frustratingly I don’t think Motability Operations will pay more realistic prices. The reason I write “frustratingly” is the fact that Motability Operations make more profit than neccessary. Obviously they need to make a healthy profit to keep the scheme running through any difficult situations that may arrive. But with the cash reserves they have generated; the fact that they can afford to pay staff higher than average wages; they have enough cash to make donations at will with the money the scheme users pay and are “owned” by banks who do it out of the goodness of their own hearts, makes me believe they are generating enough money to offer manufacturers a realistic price WITHOUT needing to increase APs.