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No VAT is applicable until 1st July and from that date VAT only applies to the advance payment. Cars ordered before 1st July but delivered afterwards will also be subject to VAT on the advance payment, but Motability are covering that additional cost in order that the total AP that the customer pays remains the same as the date the car was ordered (as is standard policy).
We won’t know the impact of the VAT hit until the 1st July price list is published, although even then it might be difficult to work out, as APs change most quarters anyway (mostly upwards, but some downwards). Personally, I don’t think that it will be as simple (or as bad) as APs going up by 20%, as Motability will have likely covered off some of the 20% hike by the reduced mileage limits, massive hike to excess mileage charges etc.
Similar to what Glos Guy, says, as there is no transparency to Motability pricing formula, with APs or overall price, we will never know for sure how they have worked out their APs or the overall price, we will have to pay.
I would rather take the hit on the advance payment than some of the other solutions MB are currently planning to introduce – Mileage, Tyres, Drive Smart (additional AP where driver is under 25 or 30 or take the whatever alternative is offered as any young driver can choose to do if insuring a car outside of the scheme).
I would rather take the hit on the advance payment than some of the other solutions MB are currently planning to introduce – Mileage, Tyres, Drive Smart (additional AP where driver is under 25 or 30 or take the whatever alternative is offered as any young driver can choose to do if insuring a car outside of the scheme).
I think it’s fairer to have both options. For those who can afford it and need that extra range a higher AP should be available. For those for whom the AP is already a challenge, reducing the mileage could make more cars affordable.
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
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