As I always buy our private cars (new or used), I never really look at leasing companies, but it’s interesting to see how it’s relatively easy now to beat Motability, especially when other leasing companies don’t benefit from the 20% VAT exemption that Motability enjoys.
I know that one or two folk are dismissive when many of us bang on about the excessive pay and benefits at all levels in Motability Operations, but you don’t have to be a mathematical genius or business expert to work out that these two issues are linked. The fact that Motability benefit from an additional 20% saving (over and above the huge discounts that they negotiate) allows them to pay well ahead of sector average – a choice that they make rather than passing on this saving to customers.
I appreciate that not everyone is in a position to buy, but there are even bigger savings out there for those who can. I negotiated a 16% discount on an ICE car and had I wanted an EV I would have been looking at 20-25%.
Of course the best value of all is to be had for those who buy used, which is what we would have done had we not been eligible for VAT exemption on a new car purchase. Together with the VED exemption and discount negotiated, I got 40% off the new price, which effectively meant being able to buy a new car at a used price, but if we hadn’t been eligible for all the relief I would have bought a used car without hesitation.