Lease Extension Question

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    Topic
  • #269093
    Glos Guy
    Participant

      I’m not a great fan of lease extensions, as I think they make poor financial sense for the customer to be paying full entitlement for an ‘old’ car, plus APs assume a 3 year lease and are priced as such. None the less, as our order window opens up next month, and there’s nothing grabbing me at present that I’d prefer over our current car, I asked about a lease extension when I called Motability the other day (having read on here that the policy had changed).

      I was told that we could only extend for 6 months, not the two years as was previously allowed. The criteria for 2 year extensions is now that the car must be under 20,000 miles or have significant adaptations. Our car has done 25,000 miles and has no adaptations, so therefore does not qualify for a 2 year extension and the maximum allowed would be 6 month. I mentioned that I had paid extra for a number of options, but this isn’t a consideration apparently. The decision is based solely on mileage or adaptations.

      To be clear, I wouldn’t want to keep the car until it was 5 years old, but I’d like the option to extend for 2 years with the option to change (or hand the car back if we buy privately) at any time within that 2 years. I’m going to wait and see what quarter 2 brings first, but might then go back to them and challenge this, on the basis that the rules have changed mid lease and should, IMO, only apply to new leases.

      Before I do this I have a question to fellow forum members. A number of you have recently reported that, even since this policy change, you have been able to extend your lease by two years. Those of you who have done this, were any of these 2 year extensions on cars that had done over 20,000 miles and had no adaptations? Thanks.

    Viewing 25 replies - 26 through 50 (of 51 total)
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    • #269253
      Oscarmax
      Participant

        My lease document Duration of Hire.

        Reference in my case terms and conditions 08/23

        #269902
        MFillingham
        Participant

          Taken from a Facebook conversation on the Scheme’s own group adds some clarity to their current thinking but no entirely clear results as this suggests only 5k miles per year over the 3 years.

          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

          #269904
          Oscarmax
          Participant

            Looks like this is my last Mobility car

            #269921
            Glos Guy
            Participant

              @MFillingham Thanks for posting that. Motability are all over the place with this issue and it urgently needs sorting out. I was told categorically that 2 year lease extensions are now only allowed if the car has substantial adaptations or has done less than 20,000 miles. Several people have since reported that they have very recently taken out lease extensions on cars that have mileages well in excess of this and have no adaptations. Now you are told the same as me but with an even lower mileage of 15,000 miles. The right hand doesn’t know what the left hand is doing. It would be comical if it wasn’t so serious.

              #269934
              MFillingham
              Participant

                @Glos_Guy, I’m happy to share what I’ve learnt.

                 

                It appears from posts here and elsewhere that 2 year extensions were possible up until February (not too sure where in Feb as some have extended later than others were told 6 months).  I have seen chats that originated from Motability stating April would see the new/old rules being enforced but can easily see them bringing that forward to March 1st.  I haven’t yet seen anyone extending in March for more than 6 months, although not everybody then shares their extension on social media for all to wonder at.

                 

                It seems that we have now returned to where things were pre 2020 when I know my parents extended as their car had only done 9,000 miles in the 3 years and were specifically told that the mileage allowed them to extend until my Dad (the only driver) either got a 3 year licence extension as he’d hit that age or decided (was forced) into giving up driving.  That saved Motability from a 20 month lease on a new car just to find it being returned early.

                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

                #269987
                dayskipper
                Participant

                  I agree with Glos Guy, this change should be applied to new leases, after customers have been informed about it. To apply it retrospectively, to leases which commenced while the 2 year extension was an option, is unfair. There is a large cost calculation difference, when it comes to choosing a model and various extras, between having the vehicle for 3 or for 5 years.

                  • This reply was modified 3 weeks ago by dayskipper.
                  #271448
                  des
                  Participant

                    I went to check the lease extension on my account to see if the two year option was there and it’s not. My account is saying ‘you have extended your lease. Your insurance etc’.

                    I didn’t extend, and my lease is not up until the 17th may. I wonder do they know that my order will not be here by that date so have automatically extended. Also says hand back date to be arranged with your dealer.

                    #271455
                    Avatar photoSolymar
                    Participant

                      In my draft contract T & C’s it states:

                      Duration Of Hire:
                      <p style=”text-align: center;”>”The hire term is for a minimum period of 3 years starting on the date of the delivery if the vehicle (The minimum hire term)  but continuing thereafter until either the expiry of a period of twenty four months following the hire term (The maximum hire term) or on the date on which this agreement is terminated in accordance with the terms set out in the contract terms & conditions  which, is either the earlier.</p>
                      That tells me that an extension of 24 months is possible!

                      Skoda Enyaq Coupe 85x Sportline Plus Adanced, Heat Pump & 21" Supernova Wheels In Moon White Metallic - Ordered 27th December 2023 - Confirmed 31st January 2024 - Build Week 16 (W/C April 15th) Estimated Delivery 26th May. Build Week moved back to week 23 W/C 3rd June)

                      #271454
                      DialysisKing
                      Participant

                        I can see why Motability are reluctant to extend leases as all the cars are sold on at auction and the resale value of a 3 year old car with 30ishK will be a lot higher than a 5 year old vehicle with 50k miles on

                        #271467
                        solent60
                        Participant

                          I went to check the lease extension on my account to see if the two year option was there and it’s not. My account is saying ‘you have extended your lease. Your insurance etc’. I didn’t extend, and my lease is not up until the 17th may. I wonder do they know that my order will not be here by that date so have automatically extended. Also says hand back date to be arranged with your dealer.

                          What you have been told is correct.

                          Like you, my new car is on order and my current 3-year lease doesn’t end until 28th of April. Motability automatically wrote to me some weeks ago to say that my current lease & insurance have been extended automatically by 6-months. They also said that there are delays on some new cars & I might not get my new car by the end of my current lease (April 28th) and I probably won’t (dealership says late May or June for delivery). It’s nothing to worry about & standard practice by Motability for all leased cars that are coming to the end of said lease.

                          #271506
                          V8bart
                          Participant

                            Just to add experience of this as of yesterday.

                            Car has roughly 18k and was due to end in less than 2 months.

                            Since all the cars I was looking at have been removed from the scheme or had big price increases I looked online at my account and it gave me the 2 year extension option so I took it.

                            Certainly glad it was or I was thinking of leaving as electric is totally impossible for me.

                            #271510
                            Glos Guy
                            Participant

                              I can see why Motability are reluctant to extend leases as all the cars are sold on at auction and the resale value of a 3 year old car with 30ishK will be a lot higher than a 5 year old vehicle with 50k miles on

                              Although the sacrificed (full) benefits that people pay for years 4 and 5 will cover that depreciation, plus the additional running costs, several times over!

                              #271511
                              Glos Guy
                              Participant

                                Just to add experience of this as of yesterday. Car has roughly 18k and was due to end in less than 2 months. Since all the cars I was looking at have been removed from the scheme or had big price increases I looked online at my account and it gave me the 2 year extension option so I took it. Certainly glad it was or I was thinking of leaving as electric is totally impossible for me.

                                You are lucky that your car was under the new limit for 2 year extensions of 20k miles. Ours has done 25k so they are telling me any extension is 6 months max.

                                #271597
                                AlanBang
                                Participant

                                  Hmm, our X1 3yr lease is up later this year.  Our son (who is the recipient ) will be due his PIP review in 2 years and I suspect he wont be offered the enhanced rate.  At this point there’s little point taking out a new 3 year lease if then we are to hand back after 2 years.

                                  I would think it would be in Motability’s interest to extend the lease, they at least benefit for the 2 years instead of us going private.

                                  Will be an interesting conversation with them!

                                   

                                  #271600
                                  Ioniq
                                  Participant

                                    Its Motabilities company and they are good at changing the rules to keep the company profitable.

                                    Factor in the change from ICE to BEV, and its understandable they will keep lease extensions at 6 months for ICE cars as they need to auction them off ASAP.  Motability are after all pushing EV,S as much as they can.

                                    It would be interesting if a BEV are given the same  6 month max extension??

                                    But yup, if Motability want to move people away from ICE, that is certainly one way to do it. Shorter and shorter lease extensions.

                                    #271611
                                    DialysisKing
                                    Participant

                                      Just to add experience of this as of yesterday. Car has roughly 18k and was due to end in less than 2 months. Since all the cars I was looking at have been removed from the scheme or had big price increases I looked online at my account and it gave me the 2 year extension option so I took it. Certainly glad it was or I was thinking of leaving as electric is totally impossible for me.

                                      You are lucky that your car was under the new limit for 2 year extensions of 20k miles. Ours has done 25k so they are telling me any extension is 6 months max.

                                       

                                      Really? By my reckoning the benefits sacrifice over 2 years is about 7.5k which by the time you take into account the admin and all associated costs+ depreciation I doubt it does. On some vehicles/ drivers it may only just cover the insurance and servicing

                                      #271631
                                      dayskipper
                                      Participant

                                        Like Solymar, I looked at the contract I signed at the beginning of my lease and it mentions 24 months following the minimum hire term. Not sure if this carries any weight, or if Motability can alter the contract retrospectively.

                                        #271633
                                        Glos Guy
                                        Participant

                                          Like Solymar, I looked at the contract I signed at the beginning of my lease and it mentions 24 months following the minimum hire term. Not sure if this carries any weight, or if Motability can alter the contract retrospectively.

                                          Mine says the same. Whilst I don’t necessarily want to keep our current car 5 years, I might want the added flexibility of the 2 year extension, given that you can change at any time within that period. When our order window opens in a few weeks time I’m going to try (again) to extend by 2 years, citing the contract and challenging their ability to change contracts mid-lease, especially as there has been no communication.

                                          There’s a point of principle here, as some customers go for a car with a high AP and or costly options in the knowledge that they can effectively offset that cost over 5 years. With some APs now more than double what they were for comparable cars just 3 years ago, I suspect that a lot of Motability customers will struggle to raise these high APs every 3 years and that fact seems to be being completely overlooked.

                                          There seems to be a degree of inconsistency and / or discretion being used at the moment, possibly because of the contract situation, but if this new rule is going to be applied rigorously on all new leases then I feel that Motability should make far more effort to alert people to this fact when their order window opens. I’ll be interested to see if they do when our order window opens in a few weeks time.

                                          #271711
                                          AlanBang
                                          Participant

                                            Looking at our agreement, it states the minimum period of 3 years, continuing until either the expiry of a period of 24 months following the minimum hire term or the date  on which the agreement is terminated in accordance with the terms in the Contract Hire terms and conditions (booklet)

                                            When I read through the small print clause 15.3 states “At any time after the end of the minimum hire term, we may terminate the agreement by giving you not less than 14 days written notice”….

                                            So although technically they can allow the extra 24 months, its at their discretion.  You would hope though that a reasonable request should be considered.

                                            I’d certainly want them to consider our request as technically our son has only 2 years left on his PIP (1 and a bit and then an assessment) therefore its easy money for them to continue the lease.    (although leaving finally gives me a chance to get an x3 privately!)

                                            #271733
                                            Wazza
                                            Participant

                                              My 5 year lease will expire end of this year. I rang motability and asked them if I order in late September/October ands delivery of car is expected to be 6 months, march 2025 for example, will they extend the lease? Yes they said as long as I have an order in place the lease will be extended until I take delivery of the new car. So in effect my lease could be 5 years 4 months.

                                              I know motability says ok but I sometimes think they might change their mind. Had anyone had their lease beyond 5 years? Current car is high spec suitable for 25s which is no longer available on the scheme and I want to hang onto it as long as possible.

                                              Thanks in advance for any replies.

                                              • This reply was modified 1 week, 4 days ago by Wazza.
                                              #271835
                                              Glos Guy
                                              Participant

                                                My 5 year lease will expire end of this year. I rang motability and asked them if I order in late September/October ands delivery of car is expected to be 6 months, march 2025 for example, will they extend the lease? Yes they said as long as I have an order in place the lease will be extended until I take delivery of the new car. So in effect my lease could be 5 years 4 months. I know motability says ok but I sometimes think they might change their mind. Had anyone had their lease beyond 5 years? Current car is high spec suitable for 25s which is no longer available on the scheme and I want to hang onto it as long as possible. Thanks in advance for any replies.

                                                No need to worry. The critical thing is that you order by the end of your 5 year lease. Waiting for the next car to arrive once ordered doesn’t technically count as a further extension, even if that goes well over the 5 years. They won’t leave you without a car.

                                                #271857
                                                Wazza
                                                Participant

                                                  Thanks for the info Glos Guy. Wish there was a like button on each post.

                                                  #271862
                                                  Glos Guy
                                                  Participant

                                                    Wish there was a like button on each post.

                                                    This has been suggested many times and @wmcforum was looking at possibly introducing it. I presume it’s not technically possible.

                                                    #271876
                                                    wmcforum
                                                    Which Mobility Car

                                                      Wish there was a like button on each post.

                                                      This has been suggested many times and @wmcforum was looking at possibly introducing it. I presume it’s not technically possible.

                                                      I’m on it. Should trial one in the coming days.

                                                      #271879
                                                      Glos Guy
                                                      Participant

                                                        Wish there was a like button on each post.

                                                        This has been suggested many times and @wmcforum was looking at possibly introducing it. I presume it’s not technically possible.

                                                        I’m on it. Should trial one in the coming days.

                                                        👍 (that’s a temporary ‘like’ until we get an official one 😂).

                                                      Viewing 25 replies - 26 through 50 (of 51 total)
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