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Motability will be here in the short term so no need for anyone to worry but long term I’m not so sure.
Car prices are rising much faster than our benefits, reducing the number of cars available on the scheme.
Evs are more expensive than ICE cars, that is until battery prices are reduced.
Diesel cars are disappearing at a rate of knots so what is the future of Motability?
As I’ve said before I see a major upheaval of the scheme in the coming years and I think it will be totally different in five to ten years time. If it’s model doesn’t change with the technology coming in it will disappear completely.
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<p style=”text-align: left;”>Correct me if I’m wrong, but don’t motability as a business make so much profit? I remember reading their owners having so much bonuses, anyway it’s obviously very profitable, they need to use that profit and reinvest more to allow more EVs onto the scheme etc, I don’t think it’ll be the end as one day they’ll be forced into making this decision, either that or be happy with the profit they’ve made, retire and close the company, but I doubt that’ll happen</p>
im a very optimistic person, motability is a great business model and a great idea to help those like all of us who struggle everyday with our / our family members disabilities, of course we’d rather have our health but having a nice car makes things a little better
so yeah long story short I agree with you, the board of motability need to make changes otherwise they won’t keep up with the car market
Motability is based on leasing a vehicle for 3 years, therefore it is based on the 3 year old price. If new car prices are rising then the 3 year old price will rise. It means the allowance only has to cover the difference, less 20% VAT.
The other Elephant in the room as far as cost for buying cars is is the amount of money the government is lending, that and with the Bank of England printing money like it’s confetti to sure up the economy the value of the £ will go down to the basement and make cars a luxury only the very rich can afford.
Sometimes I wonder if they are socially engineering it that way, look back to the 1920’s with only his Lordship on the road and none of we riff raff the rich have to put up with today on the roads.
Much the same is happening in air travel with no restriction on private jets at all while the cattle waggons are grounded.
A lot of these things are Covid related so should go back to normal when its gone or under control but I can’t help feeling its also a foot in the door.
Maybe the answer is it won’t matter as no one will be driving cars. So there is no point owning / leasing a car if you cannot drive it.. For most people anyway. They’ll say ai can do a better job than humans and thus it’s safer and it will be another thing we used to do..
Just like they seem to want to restrict everything to keep us safe and not burden the nhs, these things are slowly forced upon us but we do not realise until it’s to late.. hope i am wrong but there will be no driving jobs in the future either. It’s just a matter of how long till we are taken out of the equation, due to unsustainability.
there many tools they use some measures include restrictions, pricing, infrastructure provision, land-use planning, public transport policies, marketing, education and communications.
like the sugar tax, is to stop people using sugar and opt for the synthetic alternatives. Congestion charge, fuel taxes and blocking routes so more traffic jams are caused and is how they steer you away from car ownership. It was not so long ago they was pushing diesel as the cleaner option and look how that worked out. science was wrong then and it can be wrong now. Alot more to it then most want to hear or want to understand.
Motability is actually a stand alone organisation, owned by four banks, and funded by a variety of sources such as the resale of vehicles on the scheme, issuing of bonds etc .etc ., and it does not receive any funding from the Government / tax payer, and btw., any profits are reinvested .
It’s bulk buying power allows it to negotiate far better deals with car manufacturers than individuals can get , and the same applies to insurance, servicing,repairs etc.?
There is nothing wrong with profit, in fact it is essential to keep any business going – and businesses employ people etc .etc.
The problems occur a. In how you achieve that profit and b. How you use , or distribute that profit.
Even non profit making , or ‘not for profit’ businesses have to make a ‘surplus’ or will go out of business very smartly!
As a now retired volunteer director of a ‘not for profit’ Credit Union , I can confirm that a ‘surplus’ is essential, not just for the business but for the
‘ Customer’!Depending on the business of course , some of the profit/surplus will need to be used for growing the business ( potentially employing more people ) maintaining the business, keeping in reserve ( to cover unforeseen eventualities ) and covering upcoming increased costs , including staff rises etc?
Where problems arise is when there are either excess profits , which can be argued have been made by exploitation, or excess profits blatantly paraded in a ‘two fingers to you ‘ manner.
But making profits/ surplus is essential!
Its true that motability make a lot of £££££££ and they spend a lot of it on wages, bonuses and fancy buildings but the math is there for everyone to see. If the cars are getting more expensive and our allowances don’t keep up motability will need to reduce the number of cars available, already happening or increase APs for average cars, already happening.
When motability customers decide to buy a second hand car rather than pay a high AP for a for a basic car the company will slowly but surely die.
The challenge is to change the business model to accommodate the new tech that is coming. As rox noted autonomous vehicles are coming soon and the need to have a car of your own, especially in large towns and cities, will reduce. Motability need to acknowledge that and produce a business plan that take full advantage of it.
I believe some sort of partnership will be required to enable them to achieve this and a lot of motability jobs will need to go as the day to day activities of the company drastically reduce.
Time to bring back the horse and carriage!
lol, I don’t think it will come to that.
But Brydo does have a point. We are already seeing AP’s near the £3,000 mark for some cars. Sooner or later, that will rise to near £5,000 for a larger vehicle that many on the scheme require. If you’re able to add a couple of thousand pound more to that say, then you will be able to buy outright a very decent 2nd hand car & get to keep whatever the weekly PIP benefit is down the line. Your PIP payment goes towards insurance, parts/servicing & AA/RAC membership – but you should still be well in pocket after all the sums are done.
I would bet my bottom dollar that the number crunchers at Motability HQ are doing their future sums even as I type!
Solent 60 have you had any test drives ?
No, not yet Mike. I was going to this month – but once again we’re in lockdown. I can order on 1st December which, as it happens, is my 60th birthday. Looks like early December for any test drives.
I had to go for a drive-thru covid test yesterday which was very unpleasant. Waiting for the result which will hopefully be tomorrow (Monday). So, all in all Mike, hope to do a few test drives the first couple of weeks in December – fingers crossed. This bloody Covid business sure is messing up a lot of things in life!
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