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I see the Scottish government are hitting out at motability for fleecing customers as profits in 2022 rose to £1billion .They say that the £100million per month profits should be given back to customers and not held in reserve and given to charity.
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I assume this is the link in question:
https://www.dailyrecord.co.uk/news/scottish-news/firm-providing-scots-mobility-cars-28831857
In fairness, it is not the Scottish Government that have said this but a convener for the Mobility and Access Committee for Scotland (MACS)
they have been pocketing for some time. think this is why the 750 thing has come about.
Current Car: Hyundai Kona Premium EV...2 way 40kg hoist
Last Car: Toyota C-HR Excel Hybrid...4 way 80kg hoistWithout doubt, struth.
The Scottish government are currently using Motability to run the scheme in Scotland, but they don’t have to. Whatever MACS status is, it would be sensible for Motability to listen to it. Let’s hope they do, and reduce costs for all of us.
Wow
I have never understood why all the criticism of the Mobility Scheme it is not prefect and for the majority of us an affordable stress free gateway, if the scheme was not there what would happen ?, I for one are more than happy with the scheme.
For years I have brought and run vehicles outside the scheme, but in reality I have always lost money, at the end of the day no one is forcing anyone to us the scheme.
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
I read the article in the Record, it seems to say Scotland is working with other providers to launch another scheme to provide vehicles, more competition, that’s what Motability needs.
A bit like the ferry scheme?
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
A bit like the ferry scheme?
…and what a fiasco that was ?
Not quite sure what’s wrong with some kind of profit anyway – you guys do realise that that’s why the scheme exists in the first place, yes?
Nobody is doing this out of the kindness of their hearts. Don’t delude yourself.
We can argue at which point it becomes “too much” profit, but in general, there’s nothing wrong with it.
Prior: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19, VW Golf GTE PHEV DSG MY23
Current: Hyundai Ioniq 6 Ultimate
Next: we'll see what's available in 2028.Yup, its never as simplistic as “they are ripping us all off”, the scheme is very complex, they also have to be conservative in their approach as running out of cash is a huge no-no.
They will be making good money at the moment as cars let 3/4 years ago are coming in with a much higher secondhand value than they planned for, that should translate to cash back for us (oh look, it did) and hopefully lower AP’s – although rising car prices are outstripping our benefit by quite a way so don’t hold your breath on that one.
As for Scotland pushing for a second scheme, competition can be good, but I suspect it is more like the usual “We want a Scottish Scheme for Scottish People” rhetoric – you know, the same one as used in the “We won’t award the ferry building to the lowest, best (foreign) bidder, we will give it to a small Scottish firm with no experience building anything over 40ft long. Scottish ferries for Scottish folk!”. So expect the Scottish scheme to offer cars from Arnold Clark showrooms only. It will start off saying we have a choice of provider before quietly taking that choice away claiming some spurious national reason. The scheme will bleed cash like a harpooned whale and offer about 1/2 the cars on the Motability scheme at 1.5 times the cost. All cars over 4.5m will be banned as unnecessary as will anything the Scottish Greens don’t like (that’s anything not pedal powered or available with a bus pass).
Finally, if it ever does retain a profit, the Scottish Government will be eyeing it up like a junkie after their fix and will pass a law /change the charity status and take it. I know, because they did that to us for just £40m in savings we took years to build up.
I am in Scotland, so time will tell.
In life, it's not who you know that's important, it's how your wife found out.
Rene, the Motability scheme is set up by statute. It is not for profit, and any surpluses are required to be handed over to the charity. There should be no profit motive.
One Billion Pound annual profit in a non profit organisation? That’s pretty clever stuff. I know there’s been an interesting formation between limited companies and the charity but if statute requires 100% of Ltd profits to be transferred to the charity, that’s more grants for those who can’t afford the APs currently…
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.Mark
The Scottish government cannot even built a boat on the Clyde. Do not let them anywhere near motability scheme it would be a disaster.
They have a monopoly and are exploiting that position hugely.
You only probably have to look where these profits go and the companies involved and who owns them or is on the board’s of them and who then profits form it all. To then see where alot of the cash is removed from the scheme and is it really the remit of the scheme to do so. To invest in companies and projects and run trials etc. These are huge sums of money. Originating from the source of disability benefits and it has been said by some and myself, but then we are called anti scheme or anti mbo. After all it’s a not for profit scheme, but somehow some are profitting from it, unlike it funders, us the consumer.
More competition is needed and now hopefully it will all be highlighted and looked into, in more depth than ever before.
The facts are the facts and plain for all to se on the mbo Ltd website. Since the last look by parliament, profits have only increased and been given away to outside the scheme. Not only by mbo but mb the charity it’s self to help other disabled causes. Which is good in one way, but again is this what this money should be used for. That’s what the lottery funds are for not Mb profits, they should be used to subsides the cost and make it even more affordable to be mobile, Instead of less affordable. With such high ap’s and lack of cars on the scheme that even the cap they did have has been increased. Will they increase the level at which you can get help with a grant, so more will be able to get a grant, I highly doubt it?
Personally I cannot justify or afford such high ap’s to lease a car. Their will always be those who this is all acceptable and defend it all, that’s ok as it probably really doesn’t effect you too much, but to those it does it’s a huge issue and is not going to get better anythime soon even the ceo of mbo said so and it’s been swept under the carpet for long enough and the current market has only highlighted the problem and gap even more.
AtoB_Dude, whilst I agree with a lot of your comments, I can’t see competition being particularly helpful. One scheme having Nissan while another Stellantis, while another KIA/Hyundai, etc., leaving us customers, some of which really only want to be told what vehicle suits them best so they can get on with life and can’t deal with making multiple visits to dealers to compare cars then find one is on a different scheme.
What might well be helpful is this being brought to the attention of someone like Martin Lewis or Watchdog or similar (or all) and bring pressure to bear. I’m sure a story like ‘disability funding drawn off to make huge profits’ would peak their interest.
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.Mark
What might well be helpful is this being brought to the attention of someone like Martin Lewis or Watchdog or similar (or all) and bring pressure to bear. I’m sure a story like ‘disability funding drawn off to make huge profits’ would peak their interest.
Whlst I fully agreee it might/will be a good idea to involve those you mention, the flip side of that is the Daily Mail will no doubt want to stick their two-penneth in.
I am sure some leasing companies would like to offer cars to the disabled vat free as the scheme does’s and then sell them after and make a profit, like mbo do and it would make the market more competitive and then a percentage of profits is given to Mb the charity. Who know’s it’s just ideas of what they could do differently.
I do get your point though about manufacturers running their own scheme’s and how that may have a negative effect, but surely some more choice is better than just one option and this really needs looking at in some way or another or mbo need to change the model they running and give more back to the customers than they are.
As clearly the figures don’t lie and imo they just looking at ways to spend it on trials and partnerships that in some way could help us on the scheme but surely it’s for them companies to pitch the final product not the scheme to in someway fund the devolpment of them. How many have big piles of cash in their wardrobes, I wonder. How many have setup these companies or friends or family have.
It’s easy to do, our last local major set up a company to build houses with council tax money to then sell on the open market at full price and then give back a % to the council. Meanwhile they not building any of the social housing that they should be, only affordable homes that ain’t affordable to many. It wouldn’t surprise me if then after, the company goes under or is sold at a loss to another member/s to profit from, when they suddenly rise in value soon after, the sale.
Thats just one scam of many going on. They all at it and no one want to do anything about it as it will uncover lots more and those involved all ripping off the system and at tax payers expense.
Somehow all this maybe spun around on the disabled again.
Something certainly needs looking into and it’s hard to believe these big banks etc are running the scheme and not making anything from it, especially with the huge sums involved.
As always, be careful what you wish for.
Obviously I’m no expert but afaik the bank’s don’t take a profit out of it. They may of course get a few good jobs for the boys tho
Current Car: Hyundai Kona Premium EV...2 way 40kg hoist
Last Car: Toyota C-HR Excel Hybrid...4 way 80kg hoistI will stick with Mobility
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
I am sure some leasing companies would like to offer cars to the disabled vat free as the scheme does’s
As I understand it it would be much harder with more hoops to jump through for joe bloggs leasing company to offer a standard non modified vehicle VAT free.
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