So basically Mobility is going to take the AP VAT hit, hence the AP hike in the second quarter, if these AP stay exactly the same in the third July quarter AP will be plus 20% VAT, WOW.
Possibly not, which was my original point when answering the question posed by the OP (sorry OP for derrailing your thread). Lets say the AP for 1st April should have been £625, no VAT. Motability had 3 options on April 1st: a) Set it at £625 – that means they take a £125 hit on cars delivered after July 1st b) Set it at £750 – that means they fully cover the VAT, and get an extra £125 for cars delivered ahead of 1st July. c) Set it somewhere between £625 and £750. The where will be based on their best guess of how many cars will be delivered before and after, and try to cover all of the after. Given they are trying to save money, and have to cover costs A is almost certainly not true. I personally suspect they have done C, but they may have done B. As APs are sticker prices, and no-one really knows how they are made up it’s impossible to tell. The Enyaq feels like it’s been subjected to at least C. If they have done either B or C, then July 1st won’t show a huge increase; that’s already partly baked in from April 1st.
What?
APs as at April 1st have NOTHING TO DO WITH VAT
APs after the next quarter change will be VAT inclusive unless someone persuades Rachael to do yet another U turn. That means if the AP is £1,200 that’s £1,000 AP and £200 VAT.
What Motability MIGHT be doing is either psychologically softening the blow by making the current quarter’s APs astronomical and then the increases won’t appear to be a flat 20% meaning they can say that their cost saving measures are working. OR they have raised the AP in order to reduce the majority of APs and show that their cost saving measures worked. I suspect they might be working some BS plan where APs drop July 1st and will then increase again 3 months later. Either way, when we look back at what we would have to have paid March 31st 2026 and Dec 31st 2026 the latter will be significantly more for a much less ‘ worry free’ contract.
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Mark