It’s good news, but what I think they could do is when they process the application of your car order they send you your pin, at that point they then generate the code for your £750 payment to be redeemed. Either when you collect the car and pay the ap to the dealer on mbo’s behalf . They enter the code into the system, like they do with the pin and it reduce the cost of the ap by £750.
No real big issue imo to taking it off the ap due, maybe it’s something they didn’t even consider. Although they have given gcb before handing back the car or getting your new one when it suits them to do so and how did they generate those other payments and the letters sent?
If you don’t redeem it then, when the pin is entered the system automatically generates the payment as they do so with the gcb and will also this new car payment as they do now and it is then sent to you via whatever method you’ve selected as is pretty much the case now.
So you can use it how you like. Either way after you pay the ap they are sending out the payment and generating it somehow.
Obviously they have systems in place for generating payments, like the insurance rebate during covid. So it is possible and for many finding that extra could be a huge issue and having it taken off the bill at the point of payment would help alot for those on low incomes and those that cannot get a grant.
The other question is, is it still a otp or now every time you get a new car.
Saw an article today that some cars have now risen as much as 50% in the last 2 years.
44 cars currently on the scheme have zero ap and if you remove small cars and have an ap of £750 there’s 58 cars available, need an auto it drops to 13 cars, increase the ap to £1000 and there’s 28 cars available.
It’s not enough to entice me back to the scheme or too little to late, my current cars ap is £1,499 but I would not be able to get my new car on the scheme till june 2023, so would of ordered in the middle of march.
I predict ap’s to rise further in jan, £300 to £400 on the car I have bought, guess time will tell.
So it would mean I would still have to find that £749, which would be easier to find than the full ap of £1,499. Considering the energy bills right now and other costs.
In april though the increase in allowance will come to me which over 3 years adds up to at least an extra £1,016.26.
So it’s not like i’m losing out, but is good to see that they are giving back something from the larger rise than usually, they will get in april.
Looking at it another way as I do, they still taking over 25% of the rise. So is it really a case of them giving back, or just keeping the wolf’s from the door. As some have pointed out ap’s on some cars some people need are just unaffordable and they will have to extend and the £750 won’t help and so are get nothing anytime soon. MBO have said themselves they have increased profits from people extending. So maybe that’s another issue and help they could give to those that extend, reduce their payment to reflect leasing an older car and more people may pick that option and it would be better for the planet also.