Good Condition Bonus

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  • #164767 Reply
    MickC
    Participant

    Should this be increased from its current £600.

    I dont know if you have noticed but the used car market…….prices have rocketed,it might be temporary madness that will go back down to normal levels (who decides what is normal) when new cars begin flooding back onto the seen.

    Ive have just seen a 2012 Mondeo 2.2 Titanium X Sport with 30k going for £12045,that is crazy money.

    So anyone who has a lease ending now or soon,the dealer will be rubbing his hands at the extra cash that returning car will net him on the car market now and for the near future,so should Motability increase the GCB to reflect the uplift in used car prices.

Viewing 9 replies - 1 through 9 (of 9 total)
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  • #164769 Reply
    Rene
    Participant

    Technically, i would argue yes – but there’s the other side (MB) who will argue that the GCB is just an incentive to keep the car nice, not tied to the value (a good condition MB is worth more than a good condition Vauxhall).

    I can see it both ways, to be honest. Of course i wouldn’t mind a higher reward for being careful, but i doubt that’s going to happen anytime soon – and if it does, it won’t be much, due to the fact that the used car market will relax eventually as well. The Mondeo you mentioned is 60k miles under the average and rather mint, i’d assume that plays a role.

    edit: on top of high spec (not many cars on the scheme have cooled seats).

    #164772 Reply
    Wigwam
    Participant

    As an aside, the dealers aren’t making big profits. They are having to pay top price to get stock. Returned cars are disposed of by Motability Operations who  are the ones coining it.

    #164776 Reply
    ChrisK
    Participant

    The other thing to take into account is the second-hand market will go back to normal when the car manufactures get themselves back together.

    So lets say in a years time things have settled down but mean while Motability have increased the GCB by £100 would it be fair for those who do not renew or cannot renew there cars for another 3 to 5 years when Motability would need to put the GCB back down again because the used car market has slumped.

    I don’t think linking the GCB to retail sales would be a good thing though of course I’m sure part of it is in the equation somewhere.

    #164799 Reply
    Harrysback
    Participant

    New member here and I’m learning a good deal despite being on the scheme for nine years.

    My Good Condition Bonus point relates to the extended wait times for most new vehicles ( microchips, Covid, Brexit , gas , co2 etc!)

    The bonus is awarded as we all know at the end of three years if A and B conditions are met. All clear enough.

    If we are kept waiting for an indeterminate period, beyond the agreed period, wear and tear, potential scratch and scrapes etc are likely. The increased time will increase the deterioration and, thus, jeopardise our hopes of the bonus, through no fault of our own design.

    An extreme example might be that on the first ‘ extra’ day of the lease, beyond the agreed 36 months, something happens which disqualifies you for the bonus: something which, under normal circumstances, would never have been, and therefore never have disqualified you.

    I know I ramble. It’s an inability to be brief as brevity often allows awkward souls to be a nuisance!

    #164803 Reply
    Rene
    Participant

    I understand what you mean.

    And i agree, the good condition bonus should either be paid on order of the new car (not on delivery) – or the GCB should take the prolonged wait times (sometimes a year) into account.

    I do know that they pay GCB pro rata if you extend your lease. I’d assume that, if you actually have to wait a year, they’d throw in some extra. If not, then they should.

    #164804 Reply
    MickC
    Participant

    Has anyone thought of the GCB being linked to the mileage as well as the overall condition of the car.

    I do no more than 6k a year so in 3 years the car will be returned with about 18k on the clock,someone else with the identical car might make full use of the 3 year mileage allowance 60k ? which of the two cars will be more valuable for resale ,but both recieve the same GCB.

    #164806 Reply
    Harrysback
    Participant

    Rene and MickC….. thanks for your thoughts. I agree.

    A new formula for prorata is needed…but also indemnity against loss of bonus after three years …. understandably tricky.

    Also, re low mileage. Definitely.. These cars, sold at auction ( I went to one at Bridgewater…all those kind dealers!) achieve a premium proof low mileage… thanks to the driver….but no material benefits accrue other than for the seller and new dealer.

    Ah well.

    #164811 Reply
    Glos Guy
    Participant

    In my view, the temporary improved resale values of used cars should result in lower AP’s, not bigger GCB. Better to ask a sensible price at the start than an inflated one with a part refund at the end.

    #164815 Reply
    Harrysback

    An interesting perspective that I hadn’t considered.

    As you say, used prices are rocketing.

    This has to be significant for Motability… greater return on sales. Someone/some must benefit from this unexpected windfall.

    Who better than those who have committed their payments for 36 months and now have to wait several extra months for the replacement.

    Certainly interesting angles being raised!

    Kind regards all.

    Harrysback

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