Do Motability have a grading for customers?

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  • #247669
    Brydo

      Motability is in business to make money I think we can agree on that but do they keep a list of much each customer brings into the company?

      There are many who look after their cars very well and others who don’t. This could affect the price received on the sale of the car at the end of the lease.

      Obviously if you have a wheelchair or a scooter its likely there will be dents, chips, scrapes etc that are unavoidable.

      Mileage, a car that comes back after three years with 60,000 miles on the clock is likely to sell for less than one with 15,000 so a fairly big financial discrepancy in this instance.

      Customers who return lease after lease, if you have been a customer for years, even decades, it’s likely you have helped towards operating profits during this time. Where as those who dip in and out don’t offer so much to the business.

      So do Motability look at this or do they just look at the bottom line?

    Viewing 14 replies - 26 through 39 (of 39 total)
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    • #249172
      Brydo
      Participant

        I agree @kezo there are very few guarantees in this world but I do think that a low mileage car selling for more than a high mileage is as close as you’ll get to being a sure thing.

        I think with topics like this it’s fair to say where you actually stand in the discussion. So I would benefit from what we are talking about, I am an average user at about 7,000 miles a year. I don’t need the money from any change to the scheme but I would bet there are many who would welcome some extra cash to go towards their AP.

        I don’t see how anyone would feel entitled or any way superior if getting paid because they do fewer miles than someone else. I don’t feel entitled when getting my good condition bonus.

        If you ever decide to leave the scheme and buy a lease car you will quickly find mileage counts, big time, so motability is the exception not the norm.

         

        The only person who got all his work done by Friday was Robinson Crusoe.
        Anything i post over three lines long please assume it is an article lol.

        #249181
        kezo
        Participant

          If you ever decide to leave the scheme and buy a lease car you will quickly find mileage counts, big time, so motability is the exception not the norm.

          Most definately however, down payments and monthly payments will be far greater than you get on Motability and will include an element of interest.

          The XC40 recharge from £574.42 p/month, with a customer deposit of £9,118, with upto 8,000 miles, via volvo PCp. Leasing the same car will require an initial deposit of x months and a high monthly payments. As an example…

          Is Motability exception to the norm because its set up for those with disabilities on certain benifits or is your typical everday lease/PCP company!

          https://www.selectcarleasing.co.uk/car-leasing/volvo/xc40/estate/175kw-recharge-ultimate-69kwh-5dr-auto?mileage=5000&term=36&initial_payment=9

           

          If I left the scheme, which is incidently on my mind, I would favour buying rather than leasing 🙂

          • This reply was modified 7 months, 4 weeks ago by kezo.
          #249242
          Gee
          Spectator

            If a low mileage payment becomes a thing i hope my name goes in the hat because at the end of my last 3yr lease i’d driven less than 5,000 miles in total. My current lease vehicle (the awesome Ford Kuga) which began in October is showing less than 200 miles driven – and 65 of those miles were already on the clock when i drove it off the dealership forecourt.

            #249244
            Gee
            Spectator

              A supplementary question could be do whichmobilitycar.co.uk have a grading system for members?

              I’m tight with the big boss and all of the mods so i’m definitely right up there lol!

              #249245
              kezo
              Participant

                If a low mileage payment becomes a thing i hope my name goes in the hat because at the end of my last 3yr lease i’d driven less than 5,000 miles in total. My current lease vehicle (the awesome Ford Kuga) which began in October is showing less than 200 miles driven – and 65 of those miles were already on the clock when i drove it off the dealership forecourt.

                Wow Gee, that works out at just 32 miles per week, 4.6 mile a day on average for your previous week!

                #249247
                Gee
                Spectator

                  I agree @kezo!

                  Quality over quantity is the gold standard lol.

                  The ‘quality i’m referring to is as follows:

                  ASDA

                  TESCO

                  CHEMIST

                  CHIROPODIST

                  CAKE SHOP

                  Basically less is more – unless i’m referring to the cake shop where more easily wins!

                  #249304
                  Callmejohn
                  Participant

                    All the above of course requires Motability to individually manage (micro-manage) each returned vehicle and the realisation each individual vehicle makes – which they don’t. Nor could they really be expected to do it for circa 3000 vehicles per week (based on their stated buying of 200,000 vehicles per annum on a reasonably static customer base). They are all aggregated. Rather than individually managing Fred Blog’s returned Ford Focus (very low mileage VGC etc), it is sent to auction as part of a batch (if the dealers don’t want first dibs via the mfl Direct scheme). This auction batch will have an overall expected price. So, whilst Fred Blogg’s returned Focus may exceed the expected price at auction, Joe Smith’s 60.000 mile Focus may not etc etc. However, to add in a further illustration, what if it is a quiet auction day (lots of stock but few buyers) when Fred’s Focus is sold and only sells for a minimum price. Yet, Joe’s crap Focus is sold the following day with loads of buyers and less stock present and exceeds its expected price? This is why returns are aggregated. It is the way big businesses do it to even out variables (thus cash flow) and keep costs down by not micro-managing each individual vehicle. In Motability’s evolutionary circle, it also equates to the GCB also being aggregated (provided the vehicle meets the minimum condition based on the dealership’s ‘ticky box’ report). It doesn’t matter if Fred’s vehicle way exceeds the minimum condition necessary to generate the GCB and Joe’s simply meets the minimum condition. All get paid the same GCB. For Motability to individually micro-manage each returned vehicle at such volumes would cost Motability (and ultimately the customer) a fortune.

                    Thank you BG for your perfectly simplified comment ?

                    Really Kezo, is that your definition of a simplified comment.

                    Firstly Motability assesses each car (micro manage as Big Dave say’s) of course they do they have to put a price on each car initially for their website, and generally the best examples with the lowest milage, best condition and especially the ones loaded with expensive optional extras are swept up by dealers, I know my last two were provisionally sold to dealers before I had even handed them back.

                    They do not put out the rest in auctions as job lots, they are there as individual sales and it is not relevant to my suggestion as to whether the auction had a good day or a bad day,

                    The only relevant thing is that the car’s AP was worked out on projected residual values and if Motability get back in excess of that figure (which they mostly do, hence the yearly £1 million+ profit) which is referred to as lease equity, because the car made more based on whatever. Then surely a small part of that excess profit should be returned to the customer. As I said with Motability getting the book price + 20%, plus 75% of the rest and the customer getting a 25% of the excess after the book price and the untouched 20% profit. Motability Operations were set up to trade in cars and are well capable of coping with my proposed set up.

                    Why can’t Motability do what some leasing companies do and let the customer know from the start what the car is going to be worth at the end of the lease, simply because they know it is likely to be more than the projected residual forecast that they built into the AP.

                    Motability Operations were never set up to make over a Million profit a year and to have over a Billion profit in the bank, whilst their customers are struggling to meet high APs, to meet their disability needs.

                    #249308
                    Callmejohn
                    Participant

                      Kezo has made a very valid point here. This post has galloped along with lots of speculation using data we know nothing about and some suggestions which aren’t practical in the real business world. However, the premise of more money for less mileage used goes against the grain of what Motability is. It provides vehicles to people based on medical criteria, not financial. Whatever your circumstances, you qualify solely on medical eligibility. Everyone is equal in choice, AP and GCB. To seek to reward/incentivise individually is wrong. This service get attacked in the media and you can imagine the headline writing itself. ‘Free mobility car user wants more money because he hardly uses it’. As Kezo said, Dangerous road.

                      Sorry Motability Operations, do not provide cars based on medical criteria, they lease cars based on the financial ability to be able to pay Motability Operations the high AP’s that they demand and which helps make them huge profits each year.

                      It is only when they were being investigated and highly criticised about their exceptionally high profits, that we were suddenly and for the first time in 45 years given a gift of £750 towards our next car.

                      #249322
                      kezo
                      Participant

                        All the above of course requires Motability to individually manage (micro-manage) each returned vehicle and the realisation each individual vehicle makes – which they don’t. Nor could they really be expected to do it for circa 3000 vehicles per week (based on their stated buying of 200,000 vehicles per annum on a reasonably static customer base). They are all aggregated. Rather than individually managing Fred Blog’s returned Ford Focus (very low mileage VGC etc), it is sent to auction as part of a batch (if the dealers don’t want first dibs via the mfl Direct scheme). This auction batch will have an overall expected price. So, whilst Fred Blogg’s returned Focus may exceed the expected price at auction, Joe Smith’s 60.000 mile Focus may not etc etc. However, to add in a further illustration, what if it is a quiet auction day (lots of stock but few buyers) when Fred’s Focus is sold and only sells for a minimum price. Yet, Joe’s crap Focus is sold the following day with loads of buyers and less stock present and exceeds its expected price? This is why returns are aggregated. It is the way big businesses do it to even out variables (thus cash flow) and keep costs down by not micro-managing each individual vehicle. In Motability’s evolutionary circle, it also equates to the GCB also being aggregated (provided the vehicle meets the minimum condition based on the dealership’s ‘ticky box’ report). It doesn’t matter if Fred’s vehicle way exceeds the minimum condition necessary to generate the GCB and Joe’s simply meets the minimum condition. All get paid the same GCB. For Motability to individually micro-manage each returned vehicle at such volumes would cost Motability (and ultimately the customer) a fortune.

                        Thank you BG for your perfectly simplified comment ?

                        Really Kezo, is that your definition of a simplified comment. Firstly Motability assesses each car (micro manage as Big Dave say’s) of course they do they have to put a price on each car initially for their website, and generally the best examples with the lowest milage, best condition and especially the ones loaded with expensive optional extras are swept up by dealers, I know my last two were provisionally sold to dealers before I had even handed them back. They do not put out the rest in auctions as job lots, they are there as individual sales and it is not relevant to my suggestion as to whether the auction had a good day or a bad day, The only relevant thing is that the car’s AP was worked out on projected residual values and if Motability get back in excess of that figure (which they mostly do, hence the yearly £1 million+ profit) which is referred to as lease equity, because the car made more based on whatever. Then surely a small part of that excess profit should be returned to the customer. As I said with Motability getting the book price + 20%, plus 75% of the rest and the customer getting a 25% of the excess after the book price and the untouched 20% profit. Motability Operations were set up to trade in cars and are well capable of coping with my proposed set up. Why can’t Motability do what some leasing companies do and let the customer know from the start what the car is going to be worth at the end of the lease, simply because they know it is likely to be more than the projected residual forecast that they built into the AP. Motability Operations were never set up to make over a Million profit a year and to have over a Billion profit in the bank, whilst their customers are struggling to meet high APs, to meet their disability needs.

                        The main dealer that the vehicle was returned to usually gets the first option to buy it. Motabilty in the majority of cases command a price above what most main dealers are willing to pay. As you have said yourself Motability want book price +20%. The reality is what they want and what a dealer wants to pay are two different things. I mean what dealer will pay 20% above book price!

                        Should the main dealer not want to buy the vehicle for whatever reason, the car will be collected by Motability, refurbished, photographed, and then added to an online database, that is open to other Motability dealers. The vehicle is then open to select non franchised dealers, who specialise in the sale of used Motabilty vhicles. A larger percentage are sold to this type of dealer than a Motability maindealer.

                        The majority of vehicles are sent by Motability to a regional or online auction, mainly BCA. BCA have exclusive Motability sales which are held almost every week, where vehicles can be bid on and bought by independent traders along with members of the public, who hold a minimum of a MyBCA Silver card.

                        I can assure you, as I have attended one of these auctions, that Motability cars are there as job lots of many and not indvidualy!

                        As I said in a previous comment. Not all optional extra’s command an higher price when and return a fraction of their initial cost, when the vehicle is traded into a dealer. The dealer may depending on the options inflate the forcourt asking price slighly above an equivulent standard spec car. Even then the value would be peanuts to what the initial owner payed for them in the first place.

                        We all complain to some degree about the money Motability make and send to charity. However, try leasing a vehicle, even with 5,000 mileage limit, with same inclusive package as Motability gives, for anywhere near of what it costs to have a vehicle on Motability. OK you might get a Dacia Sandero or something similar.

                        “Why can’t Motability do what other leasing companies do and let the customer know what the car is going to be worth at the end of the lease”. Name me a leasing company that actually does that or even lets you buy the vehicle at the end. Unless you are talking about PCP deals, where you pay a balloon payment at the end of the the term or trade in for new car using the guaranteed future value as a payment towards the deposit or walk away. This is a different type of leasing, than leasing a vehicle through Motability or any other company that  leasing vehicles.

                         

                        #249328
                        Richard

                          FOI has nothing to do with personal data that’s about obtaining information about stuff that’s nothing to do with you say about communication between company a and b about product x.

                          What you’re thinking of what was referred to as a DPA SAR data protection act subject access request. The DPA has now been superseded by GDPR general data protection regulation.

                          Essentially it’s the same it’s just where companies were previously allowed to charge £10 to produce the info now they have to do so for free generally.

                          So you write to the company there are library letters online you title it GDPR subject access request. Say I want everything you have on me no exceptions blah blah blah.

                          They then have 1 month to get it to you

                          #249717
                          Brydo
                          Participant

                            We seemed to get bogged down on mileage but my main reason for posting the thread was to find out if Motability had customers that they wanted to keep having preferred customers that they would come and go with on a preferential basis.

                            Motability have almost always been very good with me so I’ve no major complaints. We’ve been on the scheme for a couple of decades, can’t remember exactly how long, so would that come into the equation of whether they would try to keep us sweet in the future also we are low mileage users and always received the GCB.

                            So what do you think do they have people they really want to keep or are we all treated the same?

                            The only person who got all his work done by Friday was Robinson Crusoe.
                            Anything i post over three lines long please assume it is an article lol.

                            #249728
                            BigDave
                            Participant

                              We seemed to get bogged down on mileage but my main reason for posting the thread was to find out if Motability had customers that they wanted to keep having preferred customers that they would come and go with on a preferential basis. Motability have almost always been very good with me so I’ve no major complaints. We’ve been on the scheme for a couple of decades, can’t remember exactly how long, so would that come into the equation of whether they would try to keep us sweet in the future also we are low mileage users and always received the GCB. So what do you think do they have people they really want to keep or are we all treated the same?

                              All Motability see are customers who make money for the the organisation and treated equally.

                              Those who aren’t profitable (too many write off’s/insurance claims  or too many early terminations without just cause etc) are removed from the scheme for a period.

                              I do think Motability should introduce a preferred customer scheme, graded on:

                              1.      Those whose house has its own individual postcode. .

                              2.      Those who live in named houses.

                              3.      Those who live in numbered houses or flats.

                              (Only joking by the way – just in case anyone thinks I am being serious).

                              But it serves to show why an organisation like Motability doesn’t ‘grade’ or ‘prefer’ their customers. What would they base it on?

                              #249740
                              Mossfinn
                              Participant

                                Kezo has made a very valid point here. This post has galloped along with lots of speculation using data we know nothing about and some suggestions which aren’t practical in the real business world. However, the premise of more money for less mileage used goes against the grain of what Motability is. It provides vehicles to people based on medical criteria, not financial. Whatever your circumstances, you qualify solely on medical eligibility. Everyone is equal in choice, AP and GCB. To seek to reward/incentivise individually is wrong. This service get attacked in the media and you can imagine the headline writing itself. ‘Free mobility car user wants more money because he hardly uses it’. As Kezo said, Dangerous road.

                                Sorry Motability Operations, do not provide cars based on medical criteria, they lease cars based on the financial ability to be able to pay Motability Operations the high AP’s that they demand and which helps make them huge profits each year. It is only when they were being investigated and highly criticised about their exceptionally high profits, that we were suddenly and for the first time in 45 years given a gift of £750 towards our next car.

                                Off course Motability supply cars based on medical criteria. If you don’t qualify for PIP or similar schemes , you don’t get a car. As for financial ability, there are currently 107 cars with zero deposit, affordable to anyone.

                                As I said before, it worries me nothing about Motability getting more as our payments rise. I’ve got a car that where I to lease privately using our AP, it would cost me £636 a month lease plus insurance, service and extras. Not a bad deal and not worthy of complaining about!

                                #249737
                                Roger Wikco

                                  Ooh Big Dave,

                                  I meet criterias 1&2

                                  What do I get? Lol ? ? ? ? ?

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