@mitch That’s such a thorough answer thank you. I hadn’t realised the the AP’s between pip and wpms had already changed as it’s been quite a while since I’ve actually looked through motability’s site.. it does give me some reassurance that if I do order in march I won’t immediately regret it come the new quarter in April.
More or less spot from mitch.
Motability have priced in April 2023’s increases already (hence the pricing differential where vehicles are ‘Total Allowance’ for both payment streams has increased to £1285 in favour of WPMS).
However, where vehicles may fall into fixed weekly payments, they cannot currently exceed £72 per week (max current WPMS). Thus, in Motability’s re-price the only way they can ‘price in’ the increase cost of vehicles is to increase the AP’s for WPMS.
In times where annual increases are low, as they have been for a number of years, it doesn’t really affect things very much (just a few pounds) but the forthcoming 10.1% increase (although still not yet officially confirmed for War Pensions) has exacerbated and highlighted the differential in pricing, particularly in fixed weekly payments cases.
By April, in the next price list, the WPMS AP’s on fixed weekly payments should drop for WPMS (however most vehicles will probably tip into ‘Total Allowance’ to increase future payments with future annual rises) or go up to the new revised weekly WPMS weekly payment.
If on WPMS and one can overcome the current increase in AP (ex-service charities may be able to help with AP’s), then as you will keep all future increases, including April’s expected 10.1% if getting a vehicle with fixed weekly payments now, it could well turn out to be a decent deal overall.