If Motability are able to sell the car on after 3 or 5 years and get over 40% (used just as a rough example for the exercise) above the book price for a 3 or 5 year old car in good condition with average mileage Is there then a case for the Motability customer to get a 25% return on any further profit made over and above the book price + 20% that Motability made in extra profit.
For example if the returned car was expected to fetch £10,000 which was built in to the original AP residual calculation and goes on to get £14,000 due to the exceptionally low mileage, showroom condition and option extras paid by the customer.
Then allowing Motability to get £12,000 (including the book price plus an extra 20%) and then split any further profit 75% (Motability) and 25% (the customer) giving Motability an extra £1,500 totalling £13,500 and giving the customer a further £500 towards their next car.
I hope the calculation makes sense to people, as a rough example.
