Not correct. Other lease companies, by the requirements of the Financial Servuces Authority have to do credit checks. Motability Operations are unique as they have dispensation from the Government
Doing credit checks does not guarantee payment for the contract length. Being paid directly from the government wallet does. This gives Motability an unfair advantage over other leasing companies as @Elliot says!
I.E Any credit agreement with a consumer runs a risk for the company giving credit, in the way if a consumer runs into financial difficulties part way through the agreement. The company then has to take steps to repossess which can be costly and time consuming. On the otherhand if a Motability customer runs into financial difficulty, the vehicle continues to be paid, untill/if they decide to hand the vehicle back. Therefore there id far less risk to Motabilty.
As with any business, charity or whatever, they get volume discounts depending on the quantity and how often they buy goods from a manufacturer or retailer of between 5-40%.
We can safely say Motability is by far the largest leasing company in the UK, therefore will beable to negotiate heavy discounts compared to other lease companies. Thats just business! However maunufacturers who sell to Motability also discount favourably as a means of getting their vehicles into the market., except during the unusuality of the pandemic and raw materials shortages, where demand outstripped avalabilty and choosing to sell retail £££