An article appeared on the website of The Scotsman last Saturday 31/12/22 reporting concerns about value for money offered by Motability. In response, a Motability Operations spokesperson is quoted saying that money will be returned to Motability customer by increasing the New Vehicle Payment, likely from the end of February. The spokesperson also stated that the increase will be paid retrospectively to anyone who received the payment in 2022.
However, A spokesperson for Motability Operations said: “There is a risk here that Motability customers are being misled. Like other leasing companies, our profits this year are much higher than expected because of the temporary global increase in the value of used cars, which could not have been predicted when leasing costs were agreed 3-5 years ago. Furthermore, our financial resilience allows us to keep our prices as low as possible for the long-term and through times of uncertainty and rising costs.
“However, we agree entirely with the principle of returning money to Motability customers and are doing exactly that – from spring 2023, every new and renewing customer taking out a lease will receive a payment of £750, with customers who received the New Vehicle Payment of £250 in 2022 having that topped up by £500.
“This amounts to an investment of £525 million over 3-5 years. We are also investing a further £645 million in pricing support to keep lease prices on average 45 per cent cheaper than alternatives. Our customers in Scotland consistently tell us that we offer them excellent value for money.”
It said the £750 payment was likely to be paid from the end of February.