You are assuming the prices are going to rise? They AP rises and falls every quarter. Even if Motability lose their vat free status does not mean they will pass it on to the customer. There is no crystal ball for future AP,s if there was one, I would buy it and use it on the lottery, never mind Motability AP,s There is another scenario where a lot of people cancel early, take the hit, and motability refuses their next lease. If the scheme is going to lose money because of these shenanigans, you bet they will put in a 12 month ban before you can reapply for the scheme. Quite an ill thought out idea.
It isn’t quite a stretch. In case you’ve not been around since October, the government have announced the imposition of Insurance Premium Tax on the Scheme insurance plus VAT on the APs. If nothing else changes that guarantees a 20% hike in APs from July. Motability are talking about reducing things like European use and there’s been talk of equalising the scheme with commercial lease terms, which suggests a 20k mile annual allowance will drop substantially. Whether these make the sort of savings that would put a sizeable dent in the tax increases is yet to be seen.
What is clear is that, whatever happens next quarter, July will see some increases.
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.
Mark