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Hi, is anyone else finding the creeping up of AP’s somewhat worrying, I’d love for Motability to consider giving its customers an option for paying an extra fee weekly on top of our DLA/PIP weekly payments.
£30 a week for 3 years is £4,680 repayment on AP
£20 a week is still a respectable £3,120
especially now EV mean we can save on petrol. Don’t get me wrong £30 a week extra would be a hit for me like many relying on benefits. thoughts?
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Would be great, problem is though, they have no way of making sure you pay. PIP/WPMS etc is guaranteed, and no credit checks required, so it’s totally risk free, if they became a lender, there are many risks and extra management. Having a 5 year lease to reduce AP is the best option
Previous Motability Cars
2006 - 2009 Skoda Superb VR6 2.0tdi
2009 - 2012 Citroen C5 2.0tdi VTR Nav
2012 - 2015 Nissan Qashqai 1.5dci tekna
2015 - 2018 Ford Kuga 2.0tdi Titanium X
2018 - 2021 BMW 220d X drive 2 Series Active Luxury
2021 - 2023 Hyundai Kona Electric Premium SE
2023 - Hyundai Kona Electric UltimateSometimes the maths dont stack up on a 5 year lease. There were detailed examples on old threads to illustrate this.
I thought the AP was to off set the loss on the vehicles re sale value at the end of the 3 year lease, surely a 5 years mandatory lease would be a greater loss resulting in a higher AP.
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Hyundai Ioniq 6 Ultimate
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Scale modeller in my spare time
----------------------------I thought the AP was to off set the loss on the vehicles re sale value at the end of the 3 year lease, surely a 5 years mandatory lease would be a greater loss resulting in a higher AP.
Maybe and I didn’t see the posts fwippers is referring to.
My reasoning is most of the depreciation occurs when you drive off the forecourt, and many cars have lost 50-60% of their value at 3 years, depreciation after that stage slows markedly, plus Motability are still getting the full payments from your allowance, so I would expect that to be more profitable?
The biggest risk is many cars are out of warranty after 3 years, Kia and Hyundai make great EV’s and the warranty would still be valid for the whole lease, so that would be less risky.
Previous Motability Cars
2006 - 2009 Skoda Superb VR6 2.0tdi
2009 - 2012 Citroen C5 2.0tdi VTR Nav
2012 - 2015 Nissan Qashqai 1.5dci tekna
2015 - 2018 Ford Kuga 2.0tdi Titanium X
2018 - 2021 BMW 220d X drive 2 Series Active Luxury
2021 - 2023 Hyundai Kona Electric Premium SE
2023 - Hyundai Kona Electric UltimateI thought the AP was to off set the loss on the vehicles re sale value at the end of the 3 year lease, surely a 5 years mandatory lease would be a greater loss resulting in a higher AP.
Maybe and I didn’t see the posts fwippers is referring to. My reasoning is most of the depreciation occurs when you drive off the forecourt, and many cars have lost 50-60% of their value at 3 years, depreciation after that stage slows markedly, plus Motability are still getting the full payments from your allowance, so I would expect that to be more profitable? The biggest risk is many cars are out of warranty after 3 years, Kia and Hyundai make great EV’s and the warranty would still be valid for the whole lease, so that would be less risky.
Just to correct you slightly Intranicity, as like me, I believe you are also a WPMS recipient.
If WPMS recipients extend their lease (or have their lease extended by Motability), we actually receive a ‘rebate’ of currently £7.25 per week from Motability Operations for the period of the contract extension (paid to the customer quarterly in arrears).
If this rebate were not to occur, then it would mean WPMS recipients paying more of their vehicles than PIP/DLA/AFIP customers during the extension (as the original AP and monthly payments are amortised over the standard 3 year lease period).
So, for WPMS customers, it can be a useful saving to extend the lease. If the current weekly £7.25 were saved up over the course of a 2 year extension, it is £754 to put towards the AP of the next vehicle.
Just to correct you slightly Intranicity, as like me, I believe you are also a WPMS recipient. If WPMS recipients extend their lease (or have their lease extended by Motability), we actually receive a ‘rebate’ of currently £7.25 per week from Motability Operations for the period of the contract extension (paid to the customer quarterly in arrears). If this rebate were not to occur, then it would mean WPMS recipients paying more of their vehicles than PIP/DLA/AFIP customers during the extension (as the original AP and monthly payments are amortised over the standard 3 year lease period). So, for WPMS customers, it can be a useful saving to extend the lease. If the current weekly £7.25 were saved up over the course of a 2 year extension, it is £754 to put towards the AP of the next vehicle.
Cheers for that Dave, yes, I get WPMS and didn’t realise that we got a rebate, and that is good news, as I am contemplating either leaving the scheme temporarily and getting a cheap runaround until the right EV (e Niro, Enyaq or ID4) come on but might just extend now.
On a slightly different note for WPMS recipients, after a recent post, I contacted Motability re our Automatic gearbox rebate and had it confirmed that as EV’s are only in essence Auto’s that the grant will be automatically applied at the maximum £660, just a shame with the Price Cap that we aren’t offered the full max cap, but I know that would be a nightmare for just 10755 of us!
Previous Motability Cars
2006 - 2009 Skoda Superb VR6 2.0tdi
2009 - 2012 Citroen C5 2.0tdi VTR Nav
2012 - 2015 Nissan Qashqai 1.5dci tekna
2015 - 2018 Ford Kuga 2.0tdi Titanium X
2018 - 2021 BMW 220d X drive 2 Series Active Luxury
2021 - 2023 Hyundai Kona Electric Premium SE
2023 - Hyundai Kona Electric UltimateSounds like a good idea but as pointed out by someone else there are too many risks. Some people would default on payments and Motability would also need to charge those wanting to pay monthly more than the AP divided by 36, or the loss of interest and cash flow impact for Motability Operations would result in further increased AP’s for everyone else.
The option for a 5 year lease already exists. It would be foolish to make that mandatory. Keep in mind that if you run a Motability car for 5 years you are surrendering £16,250 in sacrificed PIP on top of the AP which, for many cars, would be an outlay of around £20k. The financial benefits of running a car through Motability versus the private route have already narrowed, but more and more people would find better value outside the scheme if it were to be mandatory, especially for those driving the cheaper cars on the scheme.
The price of the AP of some of the new EV’s is around the 5k so i dont think i will be getting one of them, thats alot of money for a 3 year leese.
Just had a quick look there are:
7 with zero AP
8 with an AP less than £100
10 with an AP less than £250
16 with an AP less than£500
2 very suitable wheel chair friendly MG and the Nissan
Unfortunately I have suffered a brain injury and occasionally say the wrong thing.
<p style=”text-align: left;”>The e-corsa looks amazing Elite Nav 11kW £99 AP. That’s the range topping model & looks really nice with a 200 mile odd range</p>
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