Not sure i like this move from Motability. it feels like a way of keeping you in the scheme. so we know benefits are going up 10.1% from 1st April. over the course of a 39 payment scheme this would yield a further £250 for Motability so does not explain the increase. the other puzzling message was about Good Condition Bonus being dropped to £250 from £600 due to spiralling costs in the motor industry. my thought process is that if you continued to give a £250 New car payment and a £600 good condition bonus it favours anyone who wishes to leave at the end of their current lease. now to fully benefit from these incentives you have to remain in the scheme to take the biggest part of the rewards sneaky or not? Mmmmmmm
I suspect that you are correct (although the 10% benefit increase will actually generate Motability closer to an additional £1k per lease every 3 years). The cynic in me thinks that they are adopting a ‘smoke and mirrors’ approach and preying on the fact that a lot of people aren’t that great at maths!
As many of us have said, the far more sensible (and cheaper to administer) approach is to scrap New Car payments completely and reduce AP’s by the same amount. It would be far better, for example, to pay £1,250 AP than to pay £2,000 AP and then get a £750 rebate. You end up in exactly the same place but don’t have the worry of finding £750 more AP than you need to, only to then get it back, especially as some posters have said that they have to borrow money to raise the AP. However, many people won’t realise that AP’s are over inflated and won’t appreciate that they are simply getting back money that they needn’t have paid in the first place, so will feel that there is a financial incentive to stay in the scheme, when in fact there isn’t!