Big Dave
As someone who actually had first hand experience of buying a car and paying the minority remainder of the cos over 3 years, by using my Mobility Allowance I have to disagree with some of what you say and also some of the misinformation of what is on the internet. Although I do agree a lot would be due to Motability and the dealers who leased Motability cars and got them back at the end of the lease, at that time to sell o , not making as much profit back then. The FCA could be sorted out as back in 1975 who would have thought Mobility Allowance and Motability would happen, in 76 and 78.
Back in 1970 who would have expected Attendance Allowance for looking after your disabled child or old granny sitting in the corner. As we know the Government can come up with whatever they want. You seen that during Covid, who would ever have believed that the Government would have paid people 80% of their wages for sitting at home doing nothing..
Although it was called HP it was different terms to commercial HP, and more in line with a credit agreement. You did not need a credit rating, as the payment was guaranteed by DWP or Funds for the veterans as it is in leasing from Motability.
If you had a wright off it did not affect Motability as you paid the insurance for the car you bought and that was your problem if you smashed up the car and Motability still got your monthly payments, so long as you did not die and people at that time were nearly all, if not all getting Mobility Allowance for Life.
You were paying by far the larger majority sum at the start unlike AP for leasing and only paying your monthly benefit to Motability than you would in leasing the car.
If as you say Motability didn’t want to take the person to court then how would they get the car back. and more likely the payments were still being paid to Motability for the advance loan anyway.
You could make alterations to the car, which I did with MG spoilers, or alloy wheels, or a sun roof, which was popular at the time. Buying did not have the same restrictions as leasing the car.
The condition of the car does not come into it and lease cars were sent back in bad condition.
Motability was meant to have been set up to be independent and should not have a conflict of interest with their banks.
.Bandit, I don’t think that the interest rate was uncompetitive and as with leasing Motability was the only one that could get the payments from source and Guaranteed.
