Very interesting, especially as the biggest adverse financial impact for the vast majority of scheme users (the addition of VAT and IPT) has yet to be announced. Andrew Miller says that, without mitigation, this would have added £1,100 per lease. What we don’t know is how much of that impact is still to come, as we don’t know how much the changes announced today eat into that £1,100 and, more importantly, what’s left and will be added to APs.
We have already made the decision to leave the scheme due to poor choice (we don’t want an EV and /or something from the Far East) but, in truth, none of the changes announced today would affect us. We now do less than 10,000 miles a year, have never needed more than a couple of tyres during a lease and don’t take the car abroad. However, the 25p per mile surcharge seems unreasonable to me. Not that I lease, as I buy cars outright, but I think that’s around double what most lease companies charge, and double the excess mileage charge for many PCP deals. We usually pay an AP though, so that would be subject to an increase from our next lease if we were sticking with Motability.
High mileage EV and PHEV users will be massively impacted, as this 25p per mile will be on top of the government imposed surcharges (for ALL mileage). Ouch!
