The other issue about phased payments is that it makes Motability a lender, governed by all sorts of complex financial legislation. I’d love to see second hand cars on the scheme, especially if it means models way above what is presently offered, but I can’t see that happening either. The simple reason being that Motability gets a block VAT exemption which means they are paying second hand prices anyway! Besides, VAT exemption only applies to brand new cars.
Due to the way Motability get the vat exemption (it’s actually a rebate rather than up front exemption…)
The car needs to be on fleet for 3 years so cars that are terminated early Motability need to pay that vat on.
So it would work in motab favour to release some of the Early terminated vehicles.