Motability Operations (formerly Motability Finance Ltd), owned by four clearing banks (Barclays, Lloyds Banking Group, HSBC and NatWest Group), operates on behalf of Motability.
EV investment totalled £57.7m, up from £19.6m in 2023. Some £265.5m has been set aside to subsidise prices for 98,000 customers.
In my view, the rope will continue to tightened beyond the recent loss of automatic lease extensions, tightening of the GCP. AP’s will rise, moreso for ICE, as MO battle with the effects of sharp down turns of residual values, especially with the volatilty of the used EV market. Gains from end-of-lease disposals during 2024, saw massive drop from £420m in 2023 to £8,9m in 2024. However, the governmemts targets in EV sales, also weighs heavily on MO. Despite this a 24% increase in revenue was seen in 2024, as more joined the scheme.
Inflation rises, means worker are paid more, which is no exception to Motability staff, CEO’s of of both the Motability Foundation and operations, still command huge salaries and bonus, even though it’s less than previous years.
The switch from RSA to Direct Line, was perhaps the wrong move. Needless to say excess is increasing and there’s more reluuctance from the insurer to want to repair more minor damage, which also as an advantage to the scheme users.
Over the next couple of year’s or more, I think we will see those who don’t require adaptions and those that need less intensive adaptions, be the first to jump ship, as lease prices become similar in cost to PCP deals or those that have the money buying second hand. Then there are those that don’t prticularly want an EV, who will jump in the coming years, with Motability existing for more niche users.