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Several dealers have posted on Facebook and a customer service rep confirmed they were briefed at 4pm today.
As of 16th December there will be no opportunity to extend the lease for 2 years, even if you’re car has incredibly low mileage. Lease extensions will only be allowed for short periods usually as an opportunity to get the next car delivered.
For those who justified the expense as a 5 year lease or save up for the next AP and planned for 4 or 5 years to get the extra money for today’s higher APs Motability will not move on their decision.
This is purely financial as extra servicing and upkeep costs appear to be impacting profits. After last years losses, they’re clearly targeting massive changes to ensure retained earnings grow year on year.
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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With 36 month only leases I can’t see many people opting for the high end AP.
Unfortunately I have suffered a brain injury and occasionally say the wrong thing.
With 36 month only leases I can’t see many people opting for the high end AP.
Yeah we probably won’t.
But so far, most quarters there’s a banger deal somewhere (Ioniq 6 Ultimate for less than £1k etc), so.. I’m not too mad, i’ll be honest.
Particularly because usually, after three years, it feels like we’re paying too much for the car (insuring/taxing/servicing a 3 year old car doesn’t cost £4k a year, depreciation already happened in the first 12-24 months).
High end AP vehicles on the scheme are all nonsensical anyway, nobody is going to pay £8k for a bloody Vauxhall PHEV anyway.
The entire idea of scrapping the extension, as Glos mentioned, is nonsensical from the MB point of view. Assuming that’s the only change.
Prior: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19, VW Golf GTE PHEV DSG MY23
Current: Hyundai Ioniq 6 Ultimate
Next: we'll see what's available in 2028.Motability are probably scared that an extended EV at 5 years old, would not be attractive at auction to dealers and raise buttons in sales profit. They are suffering as it is from the value of 3yr old EVs vs what their calculations were back in 2022. Add on 3 year warranty, so any issues year 4 & 5 are on their dime…
Hmmm, you could always choose a car with a daft lead time, Enyaqs are about 12 months just now (according to Carwow’s lead time chart), so that’s a 4 year lease…and order it the day before your 3 year deadline.
In life, it's not who you know that's important, it's how your wife found out.
My contract which was signed on the 22/11/24 states.
The hire term is for a minimum period of three years starting on the date of delivery of the vehicle (the “minimum hire term”), but continuing thereafter until either the expiry of a period of twenty four months following the minimum hire term (the “maximum hire term”) or the date on which this agreement is terminated in accordance with the terms set out in the contract hire terms and conditions (ref T&C’s 9/24)(the “conditions”) which ever is earlier.
Sounds like I can extend mine.
@Abercol there’s no point comparing anything to residuals from 2022. There was a huge chip shortage still impacting availability of new cars so used cars were inflating over the first year and barely depreciating over 3 years. I remember looking at the price of the ZS EV I bought as post Covid transportation was allowed. It then increased by £5,000 in the next year and was still worth what I paid for it until a year before I changed it. Between Feb 23 and Feb 24 it lost nearly £10,000 back to about where it would have been in more normal times. They have over corrected slightly since then to a point of depreciation being more than an equivalent ICE by around 10%.
If you’re currently planning on losing around 50% over 3 years, there’s got to be a decrease in the rate of loss after that. However, until confidence rises in used EVs, the depreciation will remain worse.
All that said, Motability’s analysts will be able to put a fairly accurate figure on the future values given a good year of data. They’ll not be making surprise losses on that this year.
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
With 36 month only leases I can’t see many people opting for the high end AP.
I would, but only because I’ve never considered lease extensions to be good value, so I always assume that we will only have the car for 3 years anyway.
In the past, the cars with the highest APs were usually the best value cars on the scheme (if you work out the AP plus sacrificed benefits as a percentage of the cars list price). Conversely, cars with nil AP were often the poorest value, as the £12k sacrificed benefits were a much bigger percentage of the cars price.
However, that’s all been turned on its head in recent years, not least with the arrival of some expensive EVs at very keen APs. There are currently a lot of very mediocre cars with very high APs that, once added to the £12k benefits, are not worth it IMHO. If we were changing today we would leave the scheme. Not because of this policy change, but because there isn’t a single car on the scheme that would interest me!
Hopefully that situation may improve by the time we are due to change as I’d rather have a car through Motability, but £12k plus a high AP is a lot of money that I can put towards something better than I can get through Motability. I also don’t feel the need to have a brand new car (which is only brand new for a short while anyway), although if we do go down the new car route we can get the VAT off the purchase price (inc options) and servicing and maintenance costs, which would help.
My contract which was signed on the 22/11/24 states. The hire term is for a minimum period of three years starting on the date of delivery of the vehicle (the “minimum hire term”), but continuing thereafter until either the expiry of a period of twenty four months following the minimum hire term (the “maximum hire term”) or the date on which this agreement is terminated in accordance with the terms set out in the contract hire terms and conditions (the “conditions”) which ever is earlier. Sounds like I can extend mine.
In deed it does des.
Whats perhaps confusing is @Rene signed (ref 9/24) and the option to extend, has been removed, so when did the contract alter, to reflect the new T&C’s?
Many used car buyers don’t/ won’t buy second hand batteries.
There arecjust too many expensive associated EV items which can and do fail. In addition, not many sensible priced repair facilities exist at present.
Agree @pazlaz
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