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So I have a Honda Civic sport plus. RRP about £28k. Forget any motability discount at point of sale without VAT the cost to Motability is £22.4k. My AP was £2k. And over the course of what will be a at least 4 yrs my PIP contribution is a little of £13k. Now I know I get tyres , break down and insurance but as it stands I reckon that’s cost £1.5k at the most. So the delta . Motability need to clear about £7.5 k to break even. On auto trader my car is still selling at about £17k. So Vat removed £14k. That is £6.5k profit. Isn’t it feasible that after 3 years we should not have to pay the full PIP allowance as they are clearly raking it in ?
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in a few months time i will have had my volvo xc60 65 plate 7 years on motability lease with almost 90k on the clock
i did order a new xc40 months ago but it was cancelled cause they couldnt supply the car so still looking
martinodParticipant
in a few months time i will have had my volvo xc60 65 plate 7 years on motability lease with almost 90k on the clocki did order a new xc40 months ago but it was cancelled cause they couldnt supply the car so still looking
How easy was it to extend beyond 5 years, are MB pressuring you to take a new lease?
Hi
Just read the report motability made £598.7m post tax half year profits so yes the banks are very happy, glad I left motability 11 years ago and went on the vat free scheme instead and keep my allowance
they said you need to order a car so they extended my lease 6 months at a time i ordered the xc40 they moneys went past and they couldnt supply it so i had to start again looking they eventually said you need to order a car which i did in june but not really what car i want but not a lot of choice car will not be ready till between feb to may 2023 so they were happy to extend again
cars done 88000 miles so far
martinodParticipant
they said you need to order a car so they extended my lease 6 months at a time i ordered the xc40 they moneys went past and they couldnt supply it so i had to start again looking they eventually said you need to order a car which i did in june but not really what car i want but not a lot of choice car will not be ready till between feb to may 2023 so they were happy to extend againcars done 88000 miles so far
65 plate and 88,000 miles, that’s got to be one of the oldest and highest mileage Motability cars ever.
Hi Just read the report motability made £598.7m post tax half year profits so yes the banks are very happy, glad I left motability 11 years ago and went on the vat free scheme instead and keep my allowance
Kurt I am intrigued VAT free scheme
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
I thought that the Tories liked the free market so why is there not competition with a not credit check scheme offer from another company, the only problem is we know what the free market did to our industry and the energy companies it did not work any idea’s.
What a good day for them yesterday, a 10.1% increase from nearly every customer come April , they must be laughing all the way to the bank
myself33Participant
What a good day for them yesterday, a 10.1% increase from nearly every customer come April , they must be laughing all the way to the bankBet they don’t have to turn the heating down, they’ve probably upped the temperature on the staff swimming pool.
What a good day for them yesterday, a 10.1% increase from nearly every customer come April , they must be laughing all the way to the bank
Whilst the swimming pool comment is tongue in cheek (as they don’t have one), Motability Operations staff will soon be receiving their Christmas Bonus, which can be several thousand pounds per employee. I somehow don’t think that their staff will be finding this winter as challenging as many of their disabled customers, whose benefits are used to provide this premier league remuneration package. What makes it worse is that they don’t even have the sales targets to meet that other call centre staff do.
Whilst the swimming pool comment is tongue in cheek (as they don’t have one)
I believe they get private gym membership which probably has a pool, so I stand by my comment ? ? ?!
Original question:
Isn’t it feasible that after 3 years we should not have to pay the full PIP allowance
One of the reason’s I will not extend again. The other reason the GCB was not pro rata. My last car I had for 54 months and only got an extra £100 GCB
Imagine going to get a car and them saying you’ll pay the same each month for a 3 year old car over a brand new car, what would you think of that?
More people are extending due to lack of choice or high ap’s and mbo profit from it. In my years on the scheme I have never extended once.
Someone said that to me are you paying reduce payments on your extension because your driver ve about in an old car
iv got a 65 plate 2016 Volvo xc60 it has 88000 miles on it Iv had it extended lots of times. If I manage to hange it after the 3 years I’d be on my 3rd new car
I don’t get my new car till feb to may next year
plus the 10% increased payments motability Will receive
it does make you think
When I look at private lease deals on the various websites, there is very little price difference in a 3, 4 or 5 year lease. In some cases the longer terms are actually more expensive. Why would this be the case?
Imagine going to get a car and them saying you’ll pay the same each month for a 3 year old car over a brand new car, what would you think of that? More people are extending due to lack of choice or high ap’s and mbo profit from it. In my years on the scheme I have never extended once.
Very true and that’s why I’ve never extended either. The biggest cost of any car, which is factored into the AP, is depreciation. Most of that occurs during the first 3 years. Depreciation over years 4 and 5 is a fraction of that suffered during the first 3 years. So as well as continuing to sacrifice the full benefits for an old car, you are also paying an AP that reflects a 3 year lease. The slightly larger GCB doesn’t remotely reflect the extra £6.5k benefits you pay for years 4 and 5, nor what the AP would have been lowered to had it been priced as a 5 year lease in the first place. It’s a win, win for Motability and, with the high number of customers extending leases at present , there is no incentive for them to improve choice.
I do appreciate though that lease extensions can be useful for customers when their financial circumstances mean that Motability is their only route to a car and their current Motability car is far superior to anything available on the scheme at present, especially if they have added quite a few options. I’m sure that many are extending in the hope that scheme choice may have drastically improved by delaying by another year or two. I hope they aren’t disappointed.
When it comes to extending the lease of a Scheme car, if you are happy with the car and you don’t have to find the large Advance Payment for the replacement what is the issue? The car is fully covered?
Is the sole issue the fact that Motability may be making more money?
When I look at private lease deals on the various websites, there is very little price difference in a 3, 4 or 5 year lease. In some cases the longer terms are actually more expensive. Why would this be the case?
It’s true that the monthly cost may not be a vast amount less, but you have to do the maths on the monthly payment multiplied by the number of months and then compare the total life cost. Even on the monthly payment alone, a £30 a month difference adds up to over £1k in the first 3 years alone, yet our AP’s are the same whether we keep the car 3, 4, 5 or, in some cases, more years. I’ve not seen any that are more expensive, but don’t doubt that they exist. May be to do with things like servicing, maintenance or warranty cover, but I’m guessing as I don’t think many include this.
In the case of Motability the biggest factor is the VAT free purchase, basically a 20% discount. This advantage is eroded as the car gets older and its value declines. Brand new its value is greater than its purchase price. This is why after 3 years as the cars value decreases and service/repair cost increase, the cost of leasing the car generally does not fall, and the AP is calculated on a 3 year depreciation, not 5.
Personnel I don’t care how much money Motability makes, there bonus and peaks etc, all I want it a hassle carefree process which Motability provide.
Our 3-year lease expires in June 2023 we will extend our lease to 5 years, no upfront AP to find or £800 to change my towbar.
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
Also the other factor is as we get older there are no credit checks which will rule out many young and older customers.
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