The other issue with leasing privately is how fussy many of the companies are with charging for any little chip or minor mark.
On a like for like basis, I doubt that it will ever be cheaper to lease privately, even when the adverse changes to Motability come into play next year. The fact that the 20% VAT exemption on the core lease is remaining will see to that, even before you get into the mileage limits and Motability’s overly generous (at present) attitude to end of lease vehicle condition. If a car that you want remains available, and you want a brand new one, I’d suggest that people stick with Motability.
It always surprises me though, and I find it really odd, that when people discuss alternatives to Motability, there is always the assumption that the only other option is to lease (or buy) a brand new car. The vast and overwhelming majority of private motorists buy used cars, on the basis that the biggest cost with cars is depreciation, and the biggest hit with that is always in the first few years. Lease costs of new cars obviously reflect that. The average age of cars on U.K. roads is currently 10 years old and there are millions of cars that are more than 20 years old. It’s very rare to see cars broken down at the roadside these days and, when you do, it’s usually fairly new Jaguar / Land Rover products!
I appreciate that the up front cost of buying a car can be a prohibiting factor for many people (although you can get PCPs on used cars too) but, for those who are able, you can get a very decent car on the used market (and cover the running costs) with the amount that Motability customers hand over in sacrificed benefits (plus AP) and you own it or, if it’s a PCP, have a deposit at the end for your next car (PCPs are designed with this in mind). IMHO, this is a far more sensible (and far better value) option than leasing.