Cars disappearing of scheme

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  • #160439 Reply
    FlyingScotsman
    Participant

    Just got an email back from a Skoda dealer saying that All Skodas will be removed from scheme on 5th August except for the Fabia estate. Worrying times.

Viewing 25 replies - 1 through 25 (of 51 total)
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  • #160443 Reply
    Glos Guy
    Participant

    Not surprised following the VW and Seat removals (in fact I think I suggested that Skoda would be next) but as you say it’s very worrying. Skoda probably won’t be the last manufacturer to cull its Motability offerings, albeit temporarily. Surprised that Ford hasn’t done so as they seem to be even more affected by the chip shortage than VW. Perhaps some manufacturers still want full order books, even if they can’t fulfil them until 2022 earliest.

    #160444 Reply
    Tim

    I get the feeling, admittedly pessimistic, that once vehicles return they will be at inflated AP’s for a couple of quarters.

    #160446 Reply
    FlyingScotsman

    I’ve had confirmation from motability that Skoda are indeed removing all but the fabia estate from the scheme from midnight 4th August, meaning I can’t order superb on 5th.

    #160447 Reply
    ChrisK
    Participant

    Hi Tim

    That’s what I think is going on here and like I said awhile ago it stops us as Motability customers getting a fixed price order in before they hike the prices.

    Taking the cars off Motability enables them to bring them back with ££££ more AP and now the manufactures have Motability over a barrel the skies the limit for the manufactures profits.

    #160448 Reply
    Tim

    Exactly Chris. I’m very disappointed that Motability are acting like this is all business as usual, no email, no mention in the latest magazine… nothing. I refuse to believe they were given no notice whatsoever or any forward planning for return of vehicles to the scheme.

    #160451 Reply
    matt

    its like they dont care.

    #160453 Reply
    Logiejames
    Participant

    its like they dont care.

    The cynic in me says they probably don’t because they have no competition, they don’t need to worry. Yes we could all go out and switch to PCP or normal Lease, or hell just buy some used thing off ebay or w/e, BUT that doesn’t really compare to the full service Motability give us, and the peace of mind so they probably aren’t that worried about it :/ ….

    I do find it a bit daft that there is no competition at all, seems somewhat monopolistic. But I dont confess to know even a tiny tiny amount of the behind the scenes machinery of all this.

    #160456 Reply
    Glos Guy
    Participant

    I do find it a bit daft that there is no competition at all, seems somewhat monopolistic. But I dont confess to know even a tiny tiny amount of the behind the scenes machinery of all this.

    You know more than you think Logiejames! It is a monopoly. Even if there were only two providers we would see far better choice but, as it is, Motability Operations (the commercial company that we deal with, which is most definitely not a charity) have no competition. It is no wonder that twice as many people who are eligible to join the scheme use their benefits for other things, including sourcing cars privately.

    To be balanced, the current chip scenario is no fault of the scheme. However, Motability Operations make hundreds of pounds profit on each and every lease, so it is in their interest to encourage customers to order cars that can be delivered reasonably quickly. Excessive lead times which result in extended leases reduce their turnover and profits. We have just taken delivery of a new Motability car but I have said to my wife that, the way the scheme is going, it is likely to be our last. We are fortunate that we have the means to go private but many don’t.

    #160457 Reply
    Wigwam
    Participant

    Worldwide car production in June was down 50%.  That’s the reality.  While I agree Motability could communicate better, I can’t see them magicking new cars up from nowhere.  If they can’t get them, they can’t supply them.  They are responding to the shortage by extending leases, as no doubt the rest of the fleet industry is doing. I really don’t see what else they can do.  In time, as disposals of current lease cars happen, and no doubt at higher prices than expected, Motability will without doubt see a big increase in profits. That’ll be the time to take them to task, I think.

    #160467 Reply
    Elliot
    Participant

    I think what Motability could do is remove the caps and add manufacturers who have vehicles in stock.

    #160469 Reply
    Tim

    I think what Motability could do is remove the caps and add manufacturers who have vehicles in stock.

    I can see it now “Free luxury disabled cars for millions. Meanwhile country struggles to buy everyday car”

    #160470 Reply
    Glos Guy
    Participant

    I think what Motability could do is remove the caps and add manufacturers who have vehicles in stock.

    I can see it now “Free luxury disabled cars for millions. Meanwhile country struggles to buy everyday car”

    You are probably right Tim. As we know, the media never let the facts get in the way of a sensational headline.

    #160471 Reply
    Mike 700
    Participant

     

    No matter the unease some may have over the current reduction in the choice of vehicles on the scheme, Motability is still a fantastic scheme for the majority of people, giving them the opportunity of leasing vehicles they would most likely be unable to lease If they were not disabled?

    A massive advantage that we have over the general population is ‘not having credit searches or income checks carried out, which is a great advantage over others applying for private leasing or finance, and we should not forget this ‘massive advantage’!

    Vehicle availability and independent choice is extremely important of course, and ideally, there should always be a good choice for Motability customers, and it matters not one jot whether the AP Is Zero or £5000 plus, we are all individuals, with individual minds, capable of recognising which vehicle we would like, as well as , perhaps, need.

    We may well be disabled, but that doesn’t mean that we are incapable of exercising choice, we are just the same as any other members of society, we just happen to be disabled !

    It is not Motability ‘s fault that car manufacturers are experiencing shortages of essential supplies, and are forced therefore to suspend/delay production of some vehicles, however, it is ‘Motability’s fault’ that communication about this and other reasons for the reduction in numbers is ,sadly , ‘dreadfully lacking’, nevertheless, the reality is that there is still a great deal of choice available to us, perhaps more choice than the general population has, so perhaps we need to take a step back .

    Communication is extremely important, and information for customers is essential, and someone in Motability really does need to take ownership of this point and get regular info and updates on the situation out to the ‘membership’?

     

     

     

     

    VW Tiguan SEL in Silver White.

    #160472 Reply
    Glos Guy
    Participant

    Good post Mike700. The only point I don’t agree on is that we have more choice than the general population. Those buying or leasing cars privately are limited by their budget only. Access to Motability isn’t means tested, yet we are not allowed access to cars that many of us might prefer and would be prepared to pay higher AP’s for. Yes, we could do so privately, but if the scheme isn’t means tested then I don’t see why there have to be so many restrictions. As long as all additional costs are covered by the AP then nobody is subsidising anyone else. Sadly, perception takes precedence over logic.

    #160482 Reply
    Please park between the lines

    ask your self “how much time does it take to make a chip”

     

    How many chips are in a car

    How long does it take to build a car

    I’m sure you can make many many chips in the time it takes to build a car

     

    So there is something else at play

     

    Motability don’t want petrol diesel cars in 3 years time because no one will want one as EVs are the future and  cheaper and easier to service

     

    Replace electric motor versus an engine.

     

    Motability should be communicating with its customers as to whats happening and why, but they are not, sometimes the absence of information speaks

     

    #160502 Reply
    Wigwam
    Participant

    How much time does it take to make a chip? 2 to 3 months.

    How many chips in a car? Hundreds and in some cars more than 1000

    How long does it take to build a car?  About 2 days.

    #160584 Reply
    solent60
    Participant

    ask your self “how much time does it take to make a chip” How many chips are in a car How long does it take to build a car I’m sure you can make many many chips in the time it takes to build a car So there is something else at play Motability don’t want petrol diesel cars in 3 years time because no one will want one as EVs are the future and cheaper and easier to service Replace electric motor versus an engine. Motability should be communicating with its customers as to whats happening and why, but they are not, sometimes the absence of information speaks

    What do Motability need to communicate that they haven’t already?

    Motability don’t make cars, sell cars or make computer chips. Everyone knows the world has a chip shortage in the automotive industry. What should Motability do when a car manufacturer tells them, often at very short notice, that certain models are no longer available?

    Seriously, I’d love to know the answer…

    #160609 Reply
    Please park between the lines

    so if there is a chip shortage then anything that uses chips should be in short supply too 

     

    Such as TV computers phones apple watches and many other products chips are in a lot of things but it seams that petrol and diesel cars were the hardest hit

    And now there is a shortage of cars available on Motability but if you are a retail customer you can order one it might take a long time but you will get it

    If you are disabled and motability customer you can’t

     

    Motability could extend your lease until you get your car

    Or make more cars available

    Is it sensible to keep the price cap or bhp cap when there is a shortage of cars in the popular segments

    Open up the choice of cars that are in stock until the production ramps up

    Its a quick and easy to just remove cars from the list

     

    Have they removed any EVs from the list you know because of the pesky chips

     

     

     

    #160610 Reply
    Tim

    Quite a few manufacturers halved their semiconductor orders in light of the pandemic, that decision came back to bite them, here we are.

    #160611 Reply
    wmcforum
    Which Mobility Car

    I’ve been waiting for my new iMac for six weeks, my nephew a year for his PlayStation 5.
    The reason cars are hit the hardest is well documented.

    #160613 Reply
    Rene
    Participant

    so if there is a chip shortage then anything that uses chips should be in short supply too Such as TV computers phones apple watches and many other products chips are in a lot of things but it seams that petrol and diesel cars were the hardest hit And now there is a shortage of cars available on Motability but if you are a retail customer you can order one it might take a long time but you will get it If you are disabled and motability customer you can’t Motability could extend your lease until you get your car Or make more cars available Is it sensible to keep the price cap or bhp cap when there is a shortage of cars in the popular segments Open up the choice of cars that are in stock until the production ramps up Its a quick and easy to just remove cars from the list Have they removed any EVs from the list you know because of the pesky chips

    Hi there. Since you haven’t noticed, no, petrol and diesel cars weren’t the hardest hit. In fact, the type of fuel it uses makes no difference, since the issue is with the electronics, not with the mechanics of cars. That one thing.

    The next, i don’t know if you live in a cave, but it was literally in the news all over the world as to how hard it is to “score” a Playstation 5. Try it yourself. And then remember that it released in November last year. Same with high end GPUs. 3080s, 3090 etc also suffered from that (on top of scalping, but that’s a different story).

    Manufacturers for the entertainment industry get priority (and still can’t keep up with demand). Car manufacturers are around 3% of the global chip market, entertainment industry is 90%. Who do you think a chip maker is going to cater to? Last year, TSMC recorded 3% sales to car manufacturers. And it’s not like a car maker just calls TSMC and “buys” 500.000 chips, next day delivery. They have to be made, and capacities are scarce – with, as mentioned, the entertainment industry getting priority. There’s no chips “in storage”.

    Here’s the thing. The car sector is on track to lose around 100 billion dollars this year. I’m pretty sure they’re not doing that out of spite so you don’t get your mercedes in top trim. They’re doing it because there’s big issues at the moment that you don’t understand.

    Second, no, so far no EVs have been removed. First of all, an EV requires less electronics than a petrol engine (not sure about diesel to be honest). An electric drivetrain is as simple as it gets unless you want to go to steam. Though, obviously, i don’t think that’s the reason no EVs got removed – the real reason is that nothing on the scheme will hold value as well as EVs will, making Motability money – hence they’re willing to potentially take a worse deal for them, or fight harder to keep them.

    In regards to trying to blame manufacturers for, lets be very real here, running their business profitable, i mean.. Doesn’t sound entitled to you? Yeah you can buy top spec cars private – but even then, in case for example for mercedes, your car isn’t complete at delivery. The MBUX AR system including the natural voice recognition stuff needs to be retro-fitted. That’s what the warning means when you’re in the configurator at Mercedes. They’ll give you a vague time frame, you get your car, and a few months (or more) down the line you get a call for an appointment to activate/install the rest of what you paid for.

    And that’s for private customers. Of course private customers get priority, i don’t understand how anyone could argue that. That’s where the most money is, that’s where brand building happens. Car manufacturers aren’t charities – even if you get the car through Motability. If you’re on track to lose 100 billion monies, you serve the customers that pay more, and try to tie them to your brand so their next car is another jaguar/mercedes/whatever.

    It’s not rocket science.

    #160614 Reply
    Rene
    Participant

    Or, you could put on a tinfoil hat, and argue cynically that it’s “all about them pesky chips”, inferring that there’s foul play behind the scenes and that everyone is just evil because they’re screwing us.

    #160616 Reply
    ajn

    Hhhhmmmm

    #160621 Reply
    Glos Guy
    Participant

    It has also been mentioned in the news several times that the semiconductor chips used by car manufacturers are the old fashioned (and cheap) types, whereas those used by, for example, smart phone manufacturers are the newer (and far more expensive) ones. So they are not the same things.

    When car manufacturers started to cut down on build volumes at the outset of the pandemic, chip manufacturers switched the vast majority of their production to the newer chips (which are also significantly more profitable) because, just as car manufacturing plummeted, sales of things such as smart phones and tablets skyrocketed with consumers spending loads more time at home (including working from home) . As Tim rightly says, car manufacturers didn’t have the presence of mind to stockpile the cheaper chips, with a few exceptions (e.g. Hyundai). This problem was further compounded by the fact that there are only a handful of major semiconductor manufacturing plants in the world and several of them had pandemic related production challenges and one, in the USA, had a major fire.

    My personal experiences over the past few months really highlight all of the above. My BMW X1 order was slightly delayed (4 months from order to delivery) and one of the optional extras that I ordered was cancelled due to the chip shortage. During this time I ordered a new Apple iPhone. Ordered at 5pm and arrived at my house at 8.30am the next morning, even though we live in a rural area!

    I have long said that Motability should scrap the arbitrary price and bhp caps and allow a far greater selection of vehicles onto the scheme. I agree that now would be a good time to do this. However, in spite of my criticisms of Motability, the current lack of certain cars due to the semiconductor supply issue is not of their making and they shouldn’t be beaten up over it. They should, however, have a big red message on the car selector front page of their website apologising for the lack of choice at present and explaining the reasons why. Failure to do this is opening them up to unfair criticism, as we have seen.

    #160626 Reply
    Appleman

    Motability home page,scroll down, right hand side UK car production slumps to lowest June level in almost 70 years  for some info from motability

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