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Is it just me thinking motorbility needs to up its game
The lack of information about future Motorbility APs and if/when customers are to be hit with the whole of Labours vehicle VAT surprise
Or are motorbility going to try and soak up some of the extra cost to customers
Its a possibility they are considering I am told but a decision has not yet been made
Just been on the phone and after 20 mins came away non the wiser
Q/ asked
If a car is ordered in June 3 months before end of their present lease with a ex £2000 AP
will vat still be added to the already agreed £2000 AP in july and payable at the Sep handover
A/Cant say as not yet been decided on but if it is the case you can leave the scheme if not happy
Q/ Insurance premium how much will it be
A/Not sure but last year they thought it was around 12%
I then said so its quite possible a double hit from AP vat plus 12% of as yet an undetermined insurance premium amount
They told me they were still working on the details my reply was well they need to pull their finger out as no knowing causes anxiety
My reply was simply people at this late stage need to know what the total costs will be as unlike Starmer we do not all have a hidden money tree
Tbh the lack of info at this stage is staggering when you consider they have access to so many legal resources
How on earth can anyone plan the unknown
If and when anyone can throw light on this subject it would be appreciated
- Replies
I agree.
There’s a lot of problems caused by not knowing, especially for those of us who feel a compulsion to have properly researched our options well in advance.
Some people are potentially facing a decision on alternatives to the scheme as they simply can’t afford to renew. Plus there’s those who are already looking at other options following changes already made.
Uncertainty is always a problem.
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
Thank goodness that I have escaped all of this for the next 3 year’s. Having got my BMW (last of the breed of so called luxury car’s) in November 2025.
My heart goes out to those who will be hit with this IP tax and VAT on AP’s. And yes you are correct @jojo22 Not knowing is really a big issue that needs adressing asap.
Joss
Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.To be fair to Motability, it’s not that straightforward. Adding 20% to APs is the easy part. We can work that out ourselves by just adding 20% to current APs. Insurance Premium Tax (IPT) is far more complicated though, because it’s a 12% charge on the entire cost of insurance, and that’s not worked out by car but a block policy. Then you have the issue of what do you do with those who currently choose cars with zero AP. How will they pay the IPT?
What we can be certain of is that costs will go up and we will get less in return (poorer choice, lower mileage limits etc), so those of us who feel that the scheme is already looking unattractive know that it’s only going to get worse and we don’t need to wait until July to make our decisions.
I’m struggling to believe that generalised figures haven’t been compiled internally within Motability already. Just about every company I’ve worked in would be looking for impact reports, pricing structures, budget and forecasts, margin reporting and competition analysis as soon as these announcements were made. There will be the complexity of having to talk with manufacturers about their willingness to adjust their discounts for affordability reasons at the far end, they’ll also be talking to Direct Line for their forecasts for the next year including a July addition of the IPT.
At this point they should have forecasts based on a number of potential scenarios, it’ll help them but mean nothing to us.
HOWEVER, they should also have published a timeline so that we know what to expect and when in terms of announcements and potential changes to the scheme to keep affordability as much as possible.
It is a complicated process and the government clearly don’t care one jot but leaving the 800,000+ customers in the dark, especially when a number will already have mental health problems needs to change.
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
To be fair, why would they know those details yet? Rachel in accounts/treasuryHMRC won’t have finalised anything yet regarding deadlines and cut-offs. As for insurance, all they can do quote the current rate of insurance tax which, given there’ll be another budget first, could well change altogether anyway. You’d have been better off ringing Rachel, not that you’d have got any sense!
I agree. There’s a lot of problems caused by not knowing, especially for those of us who feel a compulsion to have properly researched our options well in advance. Some people are potentially facing a decision on alternatives to the scheme as they simply can’t afford to renew. Plus there’s those who are already looking at other options following changes already made. Uncertainty is always a problem.
Reasearching options now there is a topic/task that can often involve weeks/months of research
Who is to drive/size of vehicle/family size/pets/range/fuel type/wheelchair/scooter/cost/positive reviews/AP cost higher the AP higher the VAT
I boil cars down to at least 3 possible options because you know one or more may be pulled from the scheme before your able to order
Or your chosen car comes back onto the scheme but this time its with a huge AP increase
You now for the most part cannot extend the lease and wait for something better that may well tick more of those essential boxes
Right now to make things even more complex we are looking at future unknown costs also being put into this mix
Which of course for many can reduce possible options
Things have become even more complex for those with a longer lists of must have
That list isnt simply desire it is a list of things that are a must for their own particular circumstances.
My list is small as its just the two of us and as long as I can bend and get in and the car beats almost everyone from the lights then Im sorted 🙂 (kidding lol)
Is it just me thinking motorbility needs to up its game The lack of information about future Motorbility APs and if/when customers are to be hit with the whole of Labours vehicle VAT surprise Or are motorbility going to try and soak up some of the extra cost to customers Its a possibility they are considering I am told but a decision has not yet been made Just been on the phone and after 20 mins came away non the wiser Q/ asked If a car is ordered in June 3 months before end of their present lease with a ex £2000 AP will vat still be added to the already agreed £2000 AP in july and payable at the Sep handover A/Cant say as not yet been decided on but if it is the case you can leave the scheme if not happy Q/ Insurance premium how much will it be A/Not sure but last year they thought it was around 12% I then said so its quite possible a double hit from AP vat plus 12% of as yet an undetermined insurance premium amount They told me they were still working on the details my reply was well they need to pull their finger out as no knowing causes anxiety My reply was simply people at this late stage need to know what the total costs will be as unlike Starmer we do not all have a hidden money tree Tbh the lack of info at this stage is staggering when you consider they have access to so many legal resources How on earth can anyone plan the unknown If and when anyone can throw light on this subject it would be appreciated
The only way to stop the VAT bit on the AP would be to pay the AP when you order the car in June for example.
I know lots of people could not afford to do that, but it might be a way round it if the funds were available.
All I can say is to repeat what Rachel the tea lady said and that’s “everyone will be better off this year” and if it isn’t as we know we won’t be, blame it on Donald Trump.
Don’t worry. The Insurance tax increase will be covered by removing overseas cover and the vat increase will come into effect after the date it goes live. Price is fixed at point of order. Full stop.
Don’t worry. The Insurance tax increase will be covered by removing overseas cover and the vat increase will come into effect after the date it goes live. Price is fixed at point of order. Full stop.
Interesting. If the cost of the overseas cover was the equivalent of adding 12% to the policy, you have to wonder why on earth they included this as standard when I doubt that more than 1% of Motability drivers take their cars overseas! It would have made far more sense to have lowered their premiums and charged extra for the tiny minority that need it – as they have now decided to do!
I’m coming in for my third car now still plenty of time before I need to order but good for the AP is insane on some cars,cars last time round even with Covid etc where still reasonable now there’s many a car simply struck off the list because of the high AP,now yes I know it’ll change in march but I’m now expecting it to be car bonanza,buy a lease get one free sort of thing,no just a bunch of middling cars to choose from.
To be fair, why would they know those details yet? Rachel in accounts/treasuryHMRC won’t have finalised anything yet regarding deadlines and cut-offs. As for insurance, all they can do quote the current rate of insurance tax which, given there’ll be another budget first, could well change altogether anyway. You’d have been better off ringing Rachel, not that you’d have got any sense!
I wouldn’t phone her I’d ask her over dinner at the harvester ❤️❤️👍
I wouldn’t phone her I’d ask her over dinner at the harvester ❤️❤️👍
Yes we know what you would be doing Mike, a bottle of Baileys an you are unstoppable!
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