A huge choice of vehicles ?, reallty

  • This topic has 10 replies, 6 voices, and was last updated 1 month ago by rox.
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  • #190062 Reply
    myself33
    Participant

    Yes that was the main title of the email i got yesterday as i am due to renew from end of next month, i rang them i said you are you sending misleading (lowest choice at moment ) ,  inaccurate , emails out that you know the information is false ( should be classed as lies in my view , if you know what you are saying is incorrect), but obviously they want your money for another 3 years , as some may know i am leaving when my lease is up.

    I told them , i feel its more about profits then customers these days, and some of their APs are that high its just embarrassing, i was then told the AP was sent by the manufactures .

    I hope things improve in the medium term , so i can come back on

Viewing 10 replies - 1 through 10 (of 10 total)
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  • #190063 Reply
    fwippers
    Participant

    Whilst agreeing that he numbers are very low, the high AP’S are primarily a result of a combination of several global factors.

    #190068 Reply
    kezo
    Participant

    Whilst there are currently 517 vehicles on the scheme. Actual vehicle models will be around a 5th of the total  with the rest made up of different model variants of a particular vehicle.

    There is also a severe shortage of what actually are classed as large cars/suv’s with a limited number of medium sized vehicles currently on the scheme. There is also a severe lack of EV’s and PHEVS.

    The AP’s are scandalously high, whilst at the same time Motability continue to rake in huge profits. I will also say if the situation doesn’t alter drastically by the time my current lease is up for renewal, I will be leaving the scheme and purchasing my own. At least I will have some capital in what I own when I come to sell it.

    #190069 Reply
    ChrisK
    Participant

    DefinitelyNotAGuro is reporting he’s seeing some of the lowest prices for some car leasers this year sofar for July.

    Most of the cars are big engine jobs so could be linked to fuel prices and delivery times have to be taken with a pinch of salt.

    So how many big engine cars on Motability have reduced prices? 🤷‍♂️

    #190074 Reply
    rox
    Participant

    I just did that kezo, almost a month now since I left the scheme, handed my car back early and got the ap I paid back pro-rata.

    Overall I am not paying much more a month than I was being on the scheme at current ap’s on cars that I would probally pick as my next on the scheme. Considering that when my HP term ends, I’ll have an asset worth 50% of the cars new price value.

    Yes I will have to pay for servicing etc but i have worked it out and the options it gives me moving forward into the unknown and the 2030 ban and alot of makers before i think going fully ev are worth the extra i will pay. The time for me was now..

    What really pushed me to jump now was the 0% apr deal on the suzuki Vitara and it having lots of driving aids I like and now really need, compared to others that i could afford and didn’t have the aids etc..

    All variants actually went up £500 on the Vitara this 1/4 on the scheme.

    Probally would not of looked at it on the scheme but ticked all my boxes and the few it didn’t ain’t no biggies for me, like having a handbrake or autohold,  pretty much they cause the car to restart the stop/start when stationary. Is a hybid and has regeneration and gives it a boost.

    Were as on the scheme i’d have nothing, especilly with higher and higher ap’s it’s just not as attractive for me and also the way the scheme is going to have to go.

    Regarding offerings. 517 cars only 273 are fully automatics. Sure also they have reclassified what large is.. As for the huge profits it’s no surprise at all and my real issue is they give away profits made from us to causes of their choice and not back into the scheme or what is given to us  is all but a token gestures to say they doing somthing.

    An ev or phev ain’t really practical for us right now and how would I drive to visit and see my younger brother’s this sunday for a barbecue that’s is a minimum 382 mile round trip, that will take at least 7 hours driving. No charge points nearby and he don’t have a driveway and neither do we. So it leaves you little options but to drive somewhere and charge or stop at expensive chargepoints at motorway services you stuck at till you charged(which is a big problem for me and my condition) if they actually work or ain’t already occupied. That I wouldn’t stop at to refuel now at as they just so expensive, compared to supermarket fuel.

    So for me there’s so many reason’s now why the scheme ain’t what it was.

    #190083 Reply
    gilders
    Participant

    The APs are unjustifiably high. So long as a leasing company have enough in reserve (to purchase the car new), the AP plus weekly Allowance we forfeit should correlate with depreciation, NOT the initial purchase price of a new vehicle.

    I read that people think the APs are so high because prices of cars have increased quicker than benefits. That is true, but as I mentioned above, the initial cost of the car is not as important as depreciation.

    The main issue is Motability wanting everything their own way. They don’t want to offer manufacturers a fair price for their vehicles (hence many leaving the scheme), but they still want us to pay higher and higher APs.

    As far as I understand, benefits are increased with inflation, but are a year behind. This should mean that from next April, we will be sacrificing a larger than usual benefit increase to line Motability’s pockets.

    #190150 Reply
    Mike

    Are Motobility raking it in as the used car market has skyrocketed? They must be loving it. Shame they don’t pass those benefits down.

    #190169 Reply
    rox
    Participant

    indeed they are mike, plus also from people extending and staying in cars longer.. They giving the money to other causes, rather to us on the scheme, with the huge sums involved think profit in last 6 months audit was around 550m.

    #190171 Reply
    kezo
    Participant

    As @rox says they are making an absolute fortune. There is a thread on here that shows how much they are making  but can’t remember where. It was an investigation by someone from Scotland.

    I extended my last car to 4.5 yrs. The good condition bonus isn’t even on a pro rata basis, hence it will be my first and last car I will ever extend with them.

    #190170 Reply
    Dragonfly

    I had a look at the email today and was quite shocked by the APs, we have already decided to extend our lease by 2 years. The APs make the decision to extend a good one.

    I appreciate that prices do rise over time, it’s on a daily basis at the moment, we bought a pack of lurpack butter today and the shop assistant asked how would we like to finance it.

    As a proportion of the sale price have the AP risen sharply over the last 5 years or is my memory playing tricks?

     

    #190180 Reply
    rox
    Participant

    @Dragonfly and @kezo https://www.motabilityoperations.co.uk/Motability_Operations_2022_HYR_WEB.pdf

    Financial performance
    Revenue in the six months to March 2022
    increased 6.7% to £2,313.9m (2021: £2,169.0m).
    Within this:
    • Rental income increased 4.3% reflecting
    higher average customer numbers (with an
    incremental 9,800 joining the scheme) and
    the effect of the 0.5% uplift in mobility
    allowances effective from April 2021. Rental
    income in the year to March 2021 was also
    net of £32m of insurance related rental
    rebates, which distorts the year-on-year
    comparison.
    • Notwithstanding a lower volume of vehicles
    sold – down 30,000 units compared with 2021
    (a consequence of an increasing volume of
    lease extensions for existing customers
    pending the delivery of their new vehicles)
    the proceeds from the disposal of operating
    lease assets saw a 8.4% increase in the six
    months to March 2022 compared with prior
    year, reflecting the elevated sales values
    achieved in the used-car market.
    Profit for the period was £598.7m, representing
    a 10.3% return on assets (above our long-term
    target of 1.5%). This above target result is
    primarily driven by two effects:
    • A gain of £403.9m from vehicle sales (2021:
    £78.4m), reflecting the buoyant used-car
    market referenced above. The strength of
    the used-car market can be directly linked
    to the new-vehicle supply-side challenges
    faced globally. This has resulted in significant
    switching of demand to used cars. Our vehicle
    remarketing operation has been able to
    effectively capitalise on the conducive
    demand conditions in the used-car market,
    with average sales values of £15.5k (up 50%)
    on prior year not only driving increased
    revenue, but leading to crystallised profits
    versus the net book value. Whilst this upside
    is in part a result of used-car values
    exceeding our previous forecast expectations,
    this also reflects the realisation of a
    proportion of the blocked appreciation which
    was carried through the September 2021 year-
    end (as signalled in the 2021 Annual Report
    and Accounts).
    • A £311.4m depreciation credit reflecting the
    output of the March 2022 fleet revaluation
    exercise outlined below.
    The result for the first six months of trading
    takes restricted reserves on the balance sheet
    to £3,480.1m (March 2021: £2,444.7m) providing
    headroom above our target position.

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