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Motability (the charity bit) announce new grants to charities that help the disabled:
https://www.motability.org.uk/charitable-grants/grants-to-charities-and-organisations/
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I’m not saying this is a bad thing, not at all. But, there are Motability customers struggling with AP’s. Motability’s standard response is to apply for a grant, but not everyone is entitled to a grant. Some people have savings which exclude them from financial help, but they may not wish to use their savings on AP’s.
Or hiring a few more staff as even in the priority grant queue normally reserved for the terminally ill presently in week 6 of awaiting a decision.
Or they could have capped the maximum AP when a user needs a specific vehicle that they have to pay and granted the rest.
Seeing more and more wheelchair families leaving the scheme as the APs are far too high so are going the used private route.
Some people have savings which exclude them from financial help, but they may not wish to use their savings on AP’s.
To be fair, i don’t see why “not wanting to use your own money” would be reason enough for a charitable grant.
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.To be fair, i don’t see why “not wanting to use your own money” would be reason enough for a charitable grant.
My point is, AP’s are becoming too high, not necessarily saying we should be given grants, but we are at the point where spending £2k on an advance payment does not make economical sense. Motability are hiding behind “You can always apply for a grant” as a defence to keeping AP’s high. Those of us not entitled to a grant are being forced off the scheme. It’s very likely our current car will be the last on the scheme, probably a 2 year old used car for us. But hey ho, Motability are giving away £50 million!
Some people have savings which exclude them from financial help, but they may not wish to use their savings on AP’s.
To be fair, i don’t see why “not wanting to use your own money” would be reason enough for a charitable grant.
I think the countless adverts on daytime TV tells us how much a funeral cost these day’s could be an answer to that. ?
My point is, AP’s are becoming too high, not necessarily saying we should be given grants, but we are at the point where spending £2k on an advance payment does not make economical sense.
The general level of AP has nothing to do with it, you’re not arguing for a reduction in AP, you’re arguing for someone else to pay for it despite you being able to pay for it.
£2k for the AP isn’t outlandish, either. We can certainly talk about £6k+ APs being horrible, but we paid £1.8k for our current car and that was a steal. The very same car, before it was removed from the scheme, went to more than double that at £3999.
The APs are high, yes. But again, here’s the thing: it doesn’t matter to your argument. Your argument is that regardless of the price, someone else should pay for it because you don’t want to use your own money. Not that you can’t afford it.
If it doesn’t make economic sense (to you), and get away with a cheaper car, then everything is fine, is it not? I genuinely have trouble following that line of thought. For us, even at £5250 AP (£3250 AP + options) the car makes economic sense. It’s still considerably cheaper over the three years than a personal lease, not even including insurance, tyres etc.
I think the countless adverts on daytime TV tells us how much a funeral cost these day’s could be an answer to that.
Funeral plan/life cover? I don’t actually watch TV (at all), so i don’t know any of those ads.
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.In late 2018, Motability received a donation of £400million from Motability Operations. The extraordinary size of this donation was made possible by the unusually buoyant second-hand market, in which cars have been selling consistently at values significantly higher than expected.
Now that market is even higher but only 50m donated. Also they donated money to ukraine recently all while ap’s go up and up and cars on the scheme go down and down.
Truth is as of friday I left the scheme and am no longer gonna be lining their pockets to donate to other causes. Went to the bank today to deposit my 2 cheque’s one for gcb and one for part of the ap i paid.
I see no value for me in paying a large ap to lease a car that suits my needs, there are so many reasons now why I see the mb scheme as less attractive to me and them giving huge amounts away which is raised from us is just another in the long list.
£250 towards your next car is an insult, when they are clearly making huge profits. We all could and should apply for grants, then they’d be in trouble. I’ve never bothered to apply as Ap’s was affordable but currently and I think moving forward, as more and more cars become bev’s or phev on the scheme.
Ap’s are not justifiable and that is a huge reason why i left now rather than in just over a year, when my lease would of ended. I got more back now than I would then and the 0% deal on the Vitara I got was to good to ignore.
I’m liking it alot and has just been placed no1 as the most reliable suv in a survey by what car.
https://www.motabilityoperations.co.uk/Motability_Operations_2022_HYR_WEB.pdf
Financial performance
Revenue in the six months to March 2022
increased 6.7% to £2,313.9m (2021: £2,169.0m).
Within this:
• Rental income increased 4.3% reflecting
higher average customer numbers (with an
incremental 9,800 joining the scheme) and
the effect of the 0.5% uplift in mobility
allowances effective from April 2021. Rental
income in the year to March 2021 was also
net of £32m of insurance related rental
rebates, which distorts the year-on-year
comparison.
• Notwithstanding a lower volume of vehicles
sold – down 30,000 units compared with 2021
(a consequence of an increasing volume of
lease extensions for existing customers
pending the delivery of their new vehicles)
the proceeds from the disposal of operating
lease assets saw a 8.4% increase in the six
months to March 2022 compared with prior
year, reflecting the elevated sales values
achieved in the used-car market.
Profit for the period was £598.7m, representing
a 10.3% return on assets (above our long-term
target of 1.5%). This above target result is
primarily driven by two effects:
• A gain of £403.9m from vehicle sales (2021:
£78.4m), reflecting the buoyant used-car
market referenced above. The strength of
the used-car market can be directly linked
to the new-vehicle supply-side challenges
faced globally. This has resulted in significant
switching of demand to used cars. Our vehicle
remarketing operation has been able to
effectively capitalise on the conducive
demand conditions in the used-car market,
with average sales values of £15.5k (up 50%)
on prior year not only driving increased
revenue, but leading to crystallised profits
versus the net book value. Whilst this upside
is in part a result of used-car values
exceeding our previous forecast expectations,
this also reflects the realisation of a
proportion of the blocked appreciation which
was carried through the September 2021 year-
end (as signalled in the 2021 Annual Report
and Accounts).
• A £311.4m depreciation credit reflecting the
output of the March 2022 fleet revaluation
exercise outlined below.
The result for the first six months of trading
takes restricted reserves on the balance sheet
to £3,480.1m (March 2021: £2,444.7m) providing
headroom above our target position.
A 10.3% return in assets for Motability, against their target of 1.5%. Very nice for them, try getting anything like that from your savings.
I understand that some of you are looking at the whole financial structure of Motability and maybe shaking your heads.
However, I look at Motability on a singular basis. Does it make financial sense to me?
Does it allow me to improve my mobility?
Is it my best option?
Is it reasonably stress free? (apart from recent ordering and delivery delays)
I’ve used the scheme since the 1990’s and it has kept me reasonably mobile without worry, despite suffering chronic pain on a daily basis.
It hasn’t been cheap necessarily because I’ve often paid large AP’s to enhance enjoyment, comfort and ease of use.
Looking at Motability as a suitable scheme for you guys and gals I would still give it a hearty recommendation, but you must make your own minds up of course.
The general level of AP has nothing to do with it, you’re not arguing for a reduction in AP, you’re arguing for someone else to pay for it despite you being able to pay for it.
£2k for the AP isn’t outlandish, either. We can certainly talk about £6k+ APs being horrible, but we paid £1.8k for our current car and that was a steal. The very same car, before it was removed from the scheme, went to more than double that at £3999.
The APs are high, yes. But again, here’s the thing: it doesn’t matter to your argument. Your argument is that regardless of the price, someone else should pay for it because you don’t want to use your own money. Not that you can’t afford it.
If it doesn’t make economic sense (to you), and get away with a cheaper car, then everything is fine, is it not? I genuinely have trouble following that line of thought. For us, even at £5250 AP (£3250 AP + options) the car makes economic sense. It’s still considerably cheaper over the three years than a personal lease, not even including insurance, tyres etc.
No, I’m saying AP’s are too high and people are leaving the scheme because of this, and it’s only going to get worse with EV’s. I no longer work due to ill health and need to rely on my savings as income until I can claim my pension in around 10 years, so paying £2k AP every 3 years is just not practical for us. Incidentally, it’s my partner who gets PIP, but I usually pay the AP and do most of the driving as she doesn’t like driving.
£5250 over 36 months that’s £145 extra a month on top of the allowance and after you give back the car you get nothing for those extras or the extra book price of a better specification of car, guess who does benefit.
That’s where i see no value at all for me to the scheme, never have. There is no way I would pay that much more, infact I am buying a 25k car and with insurance it’s less than that a month.
I have had 4 cars on the scheme and never added an extra once. Highest ap was last one £1599 dealer contributed £200 only as it had risen £600 from £999 In the time from when i had a test drive to when I could place the order and I just could not afford it, as I was paying for our wedding.
Before it was removed from the scheme sure the ap was £2799 and is hard to suggest it to people at that ap. Arise of £1800 in ap since i first looked at it in late summer 2019, ordered it in jan 2020. I didn’t get it till june because of lockdown seems like the car rose £300 in ap every 1/4.
Like pops says it’s down to you to decide whats best and right now i have decided with all things considered buying is better for me right now and that’s exactly what i have done.
I always love the suggestions of just getting a grant to help with the AP’s, it’s easier said than done! I qualify on my income but when I tried to apply, it didn’t go any further than the initial phone call as my current car, although not perfect, was ok (in their view) with workarounds (someone helping me in and out of the car etc) and thus, my only option was to extend the lease and then they would look at it again at the end of the extra 2 years.
At the time, cars were arriving quicker than now, not lightning fast but certainly better than it is currently, advance payments were cheaper than now.
I had a look earlier on, there are now zero cars that are suitable and at an advance payment at even double the amount I could do even with help from family, they all seem to start at around the 3k area, are plug in varieties (which would require an investment of circa £5k on top of an AP to be viable) or just not available anymore.
The advance payments being asked now is out of kilter, it’s more than I would pay (and have paid) for a second hand car, so I think my plan now is to watch the market and when one comes up that is near me and hits the checklist, I will be handing back my car and leaving the scheme…it just makes more financial sense.
Hi Sue
I find it odd they say your current car are suitable as an excuse for turning us down as I had the same BS when I asked for help with the hoist I need in my next car and that hoist has increased in price by over 100%.
Yes we know we got suitable cars and hoists now, well some of us do, but there due to be returned so how are the ones we got suitable.
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