4 year not 3 year minimum lease now ??

This topic contains 24 replies, has 10 voices, and was last updated by  Elliot 1 month, 3 weeks ago.

  • Creator
    Topic
  • #97601 Reply

    martino

    someone told me they just got their new vw tiguane the other day and said it was a minimum lease 4 year not 3 year minimum lease,

    i didnt now that is that true

     

Viewing 24 replies - 1 through 24 (of 24 total)
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    Replies
  • #97604 Reply

    Craig

    Haven’t heard of this.

    #97605 Reply

    Speedy James

    News to me

    #97607 Reply

    mitch
    Participant

    the website says this still.

     

    Our standard lease is over three years, or five years if you are leasing a Wheelchair Accessible Vehicle and we take care of running costs such as insurance for up to three named drivers (this doesn’t have to be you), servicing, maintenance, breakdown cover and tyre and windscreen repair and replacement. All you need to do is add fuel and go.

    #97609 Reply

    SaintsMan

    If they did bring in a four or even five year lease AP’s should drop and they could increase the price cap.

    #97611 Reply

    Brydo
    Participant

    I think it’s BS would motability introduce a change as fundamental as this without telling us.

    The only person who got all his work done by Friday was Robinson Crusoe

    #97620 Reply

    Dave h

    Picked up mine today 3 yr contract

    #97624 Reply

    vinalspin
    Participant

    Telling pork pies, just ordered new car and got the paperwork through, it’s a 3 year lease.

    #97637 Reply

    Moreton5

    Probably said a 4 year as they have decided to maybe keep it for 4 years rather than 3?

    #97638 Reply

    Mike

    Rubbish

    #97645 Reply

    Abercol
    Participant

    Given the delays in VW deliveries I’d believe 4 years from point of order….lol

    #97647 Reply

    Dragonfly

    I doubt the car manufacturers would like Motability moving to 4 years leases as this would affect the number of cars they sell. The manufacturers would most probably raise their prices and Motability would get less for 4 year car  at the end of the lease. If Motability did move to a 4 year lease wouldn’t they expose themselves to higher cost in the 4th year, the car may well be out of manufactures guarantee.  It would be interesting to see Motability’s financial models for 3 and 4  year leases, if they do have a 4 year lease model.

    I pick up our new 3 year lease car up in three weeks !!!!!!

    #97650 Reply

    jamesg

    Make  no mistake  the scheme  is going to have to change  ?   This  is going to happen   sooner  rather  later !

    #97659 Reply

    POPS
    Moderator

    The manufacturers would go bust if the leasing industry in general were to move from a three year cycle to four years.

    Motability would have to totally restructure it’s financing, as it is currently based on money recouped from the optimum three year resale date.

    In my opinion a blanket change from three to four years would be a disaster for all concerned.

    #97664 Reply

    JS
    Moderator

    I agree with pops, and I’m sure I read an artical a couple of years back by Mr Betts stating with a lot of the manufacturers now offering 5 to 7 warranty it is something their strategic team has thought about, but the outcome was the “sweetspot” remains 3 years, motability already allow 4th and 5th year extension, but they are able to do this by still charging the full weekly amount to cover the lose in residual and the £1000 buffer on the vehicles is there to fall back on. I think at present a standard 4 year would result in higher AP (but if it appeases the haters and Motability makes less profit, that might be the point)

    Some PCP leases do offer 4 years to make it look cheaper but overall with the deposits and final payment they recover any loses.

     

    #97666 Reply

    gillan

    a mountain of MOTs?

    Not a chance.

    #97670 Reply

    JS
    Moderator

    Roughly 11 Million each year for the extra Mot’s

    #97672 Reply

    wmcforum
    Which Mobility Car

    The Consultation in 2017 to raise the first MOT date to four years concluded in keeping at the three year point for road safety issues.

    If the 4 year point would have come into force it would have forced manufacturers into offering minimum 4 year warranty, private buyers and fleets would have held onto cars for an extra year, same thing for Motability I suspect.

     

     

    #98490 Reply

    Bandit
    Participant

    It was probably just a typo. An awful lot gets put out without being properly checked these days. You only have to read the tick-a-tape strip that scrolls across news programs and things to see it!

    #98574 Reply

    Elliot
    Participant

    A lot of people are now extending their Motability lease beyond the 3 years, so I don’t think they have a problem with 4 year leases.

    #98575 Reply

    Brydo
    Participant

    I don’t think extending the lease is a given Elliott, there are a few criteria to be met.

    The only person who got all his work done by Friday was Robinson Crusoe

    #98589 Reply

    Elliot
    Participant

    They are happy though to allow 80k miles over 4 years.

    #98611 Reply

    Ian

    Just extended our lease for another 2 years until 2022. They said just make sure the MOT is carried out yearly. All done over the phone asked a few questions about mileage etc, I also mentioned that I had also paid an high AP and there was nothing yet on the scheme suitable. She did point out the fact that after 2022 the car had to be returned.

    #98663 Reply

    Mobilityanswers

    There is no such thing as a four year lease on the Motability scheme. All Motability car leases are three years in duration, though many users are able to extend the lease for up to two years more. Motability wheelchair accessible vehicle leases are five years for new vehicles and three years for Nearly New examples again with the option to extend for up to two years. Longer leases do not necessarily equate to lower advance payments due to increased depreciation and maintenance costs, which often are not fully covered by the additional income generated by the longer time period.

    #98715 Reply

    Elliot
    Participant

    On private leases the deals are usually better over 4 years rather than 3 both in terms of AP and rental per month.

    Depends on the vehicle. A Dacia is almost worthless after 4 years whereas an Audi / BMW / VW etc will still have a good residual value.

    To make it work the scheme would need better cars than most currently on it.

    Maybe the 4 year lease would only be offered on certain cars.

Viewing 24 replies - 1 through 24 (of 24 total)
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