Reply To: Q4 prices

#289601
Glos Guy
Participant

    Yes I realise I’d be paying a higher AP but I wondered whether I will lose my place in the queue and whether I will have to make a whole new order. I was thinking that perhaps the dealer could amend the current order.

    It depends. As has been said, the ‘order’ with Motability has to be cancelled and the new model re-ordered, however that’s an admin thing that doesn’t affect the actual order, which is with the manufacturer. In some cases, especially if the new car you want is built in the same factory and on the same production line, if it hasn’t got to the stage in the order where specification is locked down, you might find that they can change it for you with no change to lead times. As an example, with our previous car (BMW X1) the dealer found a cancelled order for an M-Sport and switched it to an XLine for us. However, it depends on many things and only your dealer can advise on what is and isn’t possible as it varies by manufacturer and model. Worst case scenario is that they have to cancel and re-order with the manufacturer and you go to the back of the queue again. If you do this, ask the dealer if they have available build allocation slots for the new model. If not, it may be several months before they can even place the new order, and very few dealers are up front about this (hence the constant reports on this forum of wildly different lead times for the same model).

    Just to correct a few responses to your other questions. AP increases are not solely down to inflation. Many APs have doubled, or even trebled, in recent years and inflation (or indeed car price inflation) would only account for a fraction of that. A Dealer Principal I know attended a meeting with Motability a few months back and was told that APs are increasing, and will continue to increase, primarily because Motability Operations are getting concerned about their level of exposure to the widely reported problems with used car prices of EVs. Every 1% in used car values costs them millions and, as we know, they have been pushing EVs hard. This is resulting in a hike in APs across the board, not just EVs

    Also, it’s not true that APs only ever go up. Whilst the overall trajectory is upwards, they can, and do, drop and can do by significant sums. Often when a new model comes out and eventually joins the scheme, initial APs can be very high. There have been many examples where the APs drop significantly once initial demand has wained, or if the initial AP was ‘optimistic’. Countless forum members have cancelled orders or got dealers to amend to the lower AP when this has happened (there’s no reason why the dealer shouldn’t do this as it doesn’t affect what they receive for the order).

    It’s not always new cars where the APs can drop. Here’s just one example. About the time that the facelifted Hyundai Tucson was launched the APs on all models dropped by £600. Many of us assumed that this might have been to clear pre-facelift models, prior to the APs going back up for the facelift model. However, the APs remained at the lower level for the facelifted model and, in fact, are still at those lower levels now.

    So, in summary, whilst the trend in APs is rising by way more than inflation, there are always exceptions and most quarters result in some nasty hikes but also some reductions. If you know the car that you want, it’s always best to order before the new quarter. If the AP goes up you are protected. If it drops the dealer can amend or, if not, you cancel and re-order. However, if you hold off ordering and the AP goes up, there’s no way of avoiding it. Hope that helps.