- This topic has 8 replies, 5 voices, and was last updated 3 years, 4 months ago by
.
- Topic
so with the announcement that benefits will go up in line with inflation 10.1% what does this mean for the mobility component of PIP that gets redirected to Motability? will then just take the additional £6.55 a week as my agreement on the lease is T/A or will i start to receive a small payment of about £26 each for weeks?
- Replies
Yes, the agreement with Motability is for all your mobility element of PIP, so if it goes up by 1% or 50% they get that benefit.
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
Yes they will keep it, making your lease £1000 more expensive over 3 years
Wow. I hadn’t realised that it amounted to that much but you are, of course, right. Whilst Motability are entirely within their rights to just pocket this additional money, with 300,000 customers that is a windfall of some magnitude. Even if you take an average remaining lease of 18 months, that’s an extra £150m! With the substantial profit that Motability already makes out of each and every lease, you’d have to hope that they might find a way to give some of this back to customers or substantially reduce AP’s, rather than just dish it out to their staff and other charities that we never signed up to (as they have been doing). But then again……..
Yes they will keep it, making your lease £1000 more expensive over 3 years
Wow. I hadn’t realised that it amounted to that much but you are, of course, right. Whilst Motability are entirely within their rights to just pocket this additional money, with 300,000 customers that is a windfall of some magnitude. Even if you take an average remaining lease of 18 months, that’s an extra £150m! With the substantial profit that Motability already makes out of each and every lease, you’d have to hope that they might find a way to give some of this back to customers or substantially reduce AP’s, rather than just dish it out to their staff and other charities that we never signed up to (as they have been doing). But then again……..
Of course they have evey right to take, as its in the agreement you sign for a vehicle with T/A. As you say but…..
If a MB customer is looking for a small car to get from A to B, it makes you wonder if the represents good value anymore, especially with some good deals to be had off scheme if the have have a decent credit rating.
If a MB customer is looking for a small car to get from A to B, it makes you wonder if the represents good value anymore, especially with some good deals to be had off scheme if the have have a decent credit rating.
Personally, I don’t think that the scheme has ever offered good value (financially) for small cars. Even with no AP, it’s still almost £10k cost over 3 years or over £16k for 5 years (which many are now extending to).
My daughter has been running a private Hyundai i20 Premium which I bought new and we’ve just chopped it in for a new Hyundai i20 Ultimate. Total cost for the whole life of the car including depreciation, insurance, servicing inc breakdown cover, maintenance, tyres and road tax has worked out at one third of the cost of running the same car through Motability over the same period – and that’s before you take into account the 10.1% increase in sacrificed benefits.
With Motability, as you sacrifice the same benefits for a £20k car as you do a £40k car, even with the sky high AP’s at present the percentage of the vehicles retail price that you pay to lease a runabout is significantly higher than if you lease a car at the top end of the scheme. We’ve only stayed in the scheme because our last few cars have been over £40k and it’s worked out cheaper over 3 years to run them through the scheme than privately. Had we been looking at £20k cars, we could have undoubtedly run them much cheaper privately
As most people don’t want high end cars, it is no surprise to me that two-thirds of those eligible to join Motability don’t, and source their cars (new or second hand) privately, or get around by other (cheaper) means. I fully appreciate that many Motability customers who insist on a brand new car every 3 years (and can afford to do that – given that the vast majority of the population can’t) may have no other route to achieving this than Motability, but for those who have options it most definitely is not the ‘no brainer’ that many would have you believe.
That’s great for some others are more grateful for the support they get to be mobile. Being a disabled driver is expensive especially when you’re young and first pass your test.
That’s great for some others are more grateful for the support they get to be mobile. Being a disabled driver is expensive especially when you’re young and first pass your test.
I completely get that Philjb. Brand new drivers, especially if they live in high risk areas, can be fleeced for a small fortune with insurance alone and, in situations like that, Motability will always be a massively cheaper option. Many insurers will offer a No Claims Discount based upon claim free years with a Motability car so, after building up a decent no claims history, those who are able to could consider switching to a private car then if it works out cheaper for them.
Another area where Motability scores is where people need adaptations, as this is far easier (and less stressful) than doing this on a private car, especially if any residual damage when the equipment is removed will affect the resale value. I do think that it’s a shame, however, that Motability make a charge for many of these adaptations given the profit that they make. We don’t need adaptations any more as my wife can no longer drive due to her disability, but I would fully support more of the schemes funds being channelled in this direction.
- You must be logged in to reply to this topic.