Motability Alternatives

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  • #180867 Reply
    MickC
    Participant

    I keep reading that people are going to leave the scheme when their lease ends,and buy a used car of maybe 3 years old.

    How do you finance such a purchase ? PCP ? HP ? Deposit needed ?

    Servicing/breakdown/insurance all need accounting for.

    All for £250 ish per month.

Viewing 25 replies - 1 through 25 (of 93 total)
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  • #180873 Reply
    BigDave
    Participant

    I keep reading that people are going to leave the scheme when their lease ends,and buy a used car of maybe 3 years old. How do you finance such a purchase ? PCP ? HP ? Deposit needed ? Servicing/breakdown/insurance all need accounting for. All for £250 ish per month.

    It all really depends on one’s circumstances – mainly the financial circumstances.

    When I left the scheme last year, I was in the fortunate position of having enough in the bank to be able to purchase a new vehicle outright as well as insure it and easily cover running costs. I appreciate not all people are in the same position.

    If looking to finance a vehicle – one has to choose whether to go down the leasing/PCP or purchase route. There are swings and roundabout to both.

    For leasing/PCP (mainly new vehicles) check out the leasing costs on the manufacturer’s own websites as well as independent leasing companies (for example Lex etc). They generally have an on-line ‘slider’ which changes the repayment amounts depending on the deposit you can afford and the period you wish to lease for.  Also be wary of mileage limits which can often be set quite low.

    For purchasing (new or used vehicles), check out the cost of loans from your bank as well as other high street banks and HP/Finance companies. Also see if the car dealer has any finance offers (but beware that car dealers often make more for selling the finance rather than selling the vehicle itself so their finance offers may not be impartial or cheapest).

    Obviously, all borrowing will be subject to credit reference checks as well as affordability checks – Banks and finance companies can get into serious trouble for lending to people who cannot realistically afford to pay back the loan or instalments.  One of Motability’s strong points being there are no credit or affordability checks as the payments to them are guaranteed.

    If going outside the scheme then yes you also have to factor in running costs, fuel etc on top of any finance.

    To be quite honest you may not get much for £250 per month (without a sizable deposit) outside of Motability – particularly in the current financial climate, with new and particularly used vehicle prices very high at the moment.

    #180876 Reply
    Sue
    Participant

    For me, it would be a run down to the local second hand car sales and get a car for sub 1k (which is what I did before Motability) and just put up with the difficulties getting in and out and length of journey – did it before, can do it again although the thought of going back to that very restricted (and painful) life is not nice. The mobility element would then very much cover the fuel, insurance and tax month to month with enough left in the tank for MOT and other bits.

    I wouldn’t be able to get a loan, finance etc due to my income although the bank of mum would probably help initially and be paid back on affordable terms.

    #180879 Reply
    Jojoe

    If leasing privately, be aware of the condition when you hand the car back.  Lease companies are not as forgiving as Motability and you could end up with a hefty bill to repair damage which Motability would have accepted.

    #180883 Reply
    kezo
    Participant

    A @BigDave says a lot depends on one financial circumstances at the time. Also interest rate rises will make repayments more on personnel loans for example

    I also think a lot depends on the class of vehicle you require and the model trim variant you want I.E a BMW is going to cost more than say a Dacia. Like wise a basic trim will be less than a top of the range trim.

    Regarding PCP if we look at the MG ZS one can be add for £185 deposit £185 month albeit for 48months, which leaves you £960 for insurance and maintenance etc.

     

    #180889 Reply
    Glos Guy
    Participant

    I keep reading that people are going to leave the scheme when their lease ends,and buy a used car of maybe 3 years old. How do you finance such a purchase ? PCP ? HP ? Deposit needed ? Servicing/breakdown/insurance all need accounting for. All for £250 ish per month.

    Keep in mind that to get anything decent on Motability now you need a sizeable Advance payment, so £350 a month is probably a more realistic comparison for most people.

    As has been said, it very much depends on peoples circumstances, but it is even possible to run brand new cars for the same or less cost than Motability.

    As I have reported before, I bought a brand new BMW 5 Series around 5 years ago and ran it for the same 3 years as my wife’s Motability supplied VW Tiguan. The two cars cost about the same to run and obviously the BMW was the far better car. The BMW was under warranty with free breakdown cover. Servicing was through a service plan negotiated into the deal. Insurance was around £250 a year. It helped that I negotiated a 25% discount as a combination of dealer, BMW and BMW finance discounts and I paid off the PCP after a month to avoid any interest charges yet still kept all the discounts.

    As I say, not everyone can do this but, for those that can, it’s not as problematic as many would think. Our current Motability car will probably be our last unless the choice improves drastically when we change in 2024.

    #180893 Reply
    volkswin

    I would add one of the many benefits of mobility especially for those that drive adapted vehicles is that if your vehicle is off the road for any reason then mobility will supply you an adapted vehicle to use.

    Having looked at various options as our lease is coming to its end, I still think if you compare vehicles like for like ( wellwhats left on the scheme) the scheme still offers good value for us as the vehicle is a tool to do a job and hey are still some decent vehicles on the scheme for not silly AP’s to be had.

     

    #180911 Reply
    rox
    Participant

    I have been looking into loans as the apr is a lot lower than any deal on many cars new or used around right now.

    Santander 2.8% and post office i think the same, if you have good credit rating should be no issue. Considering the allowance now over the 3 years of the mb lease is now just over 10k.  Are a few cars around with 0% apr but all are manuals. Kia do do the 7 year warranty and you can buy a 3 or 5 year service plan. 5 year is £699. for me that’s affordable on a smaller car maybe a rio and in the end you will own something.

    #180936 Reply
    MickC
    Participant

    Are you all of the opinion that it is not possible to replicate (the car i have Ford Kuga) with all you get from Motability for the £250 per month on the open market,now ?

    Its looks like a minefield should you choose to jump ship,to get (like for like) car wise and cost wise,another thing that would worry me,is the sky high cost of cars on the second hand market they are at a premium,and at some point in the not too distant future they will begin to drop in value and the car you have will more than likely take you into negative equity,unless you put a huge deposit down initially.

    And how is inflation going to play its part.

    Thanks for all your inputs above.

     

    #180937 Reply
    Glos Guy
    Participant

    I have been looking into loans as the apr is a lot lower than any deal on many cars new or used around right now. Santander 2.8% and post office i think the same, if you have good credit rating should be no issue. Considering the allowance now over the 3 years of the mb lease is now just over 10k. Are a few cars around with 0% apr but all are manuals. Kia do do the 7 year warranty and you can buy a 3 or 5 year service plan. 5 year is £699. for me that’s affordable on a smaller car maybe a rio and in the end you will own something.

    There are some 0% deals from other manufacturers as well, not just Kia (see link below) and there are still some big discounts to be had. Brokers such as Drive the Deal are useful as they are brand new factory orders from main dealers at big discounts. I’ve never bought through them but have used their prices as a tool to get local dealers to match, or come very close to them.

    https://www.carbuyer.co.uk/deals/81264/best-new-car-deals-2022?refid=F20720F2C6791C65EF6211EF3CB063EB&utm_medium=email

     

    #180939 Reply
    Glos Guy
    Participant

    Are you all of the opinion that it is not possible to replicate (the car i have Ford Kuga) with all you get from Motability for the £250 per month on the open market,now ? Its looks like a minefield should you choose to jump ship,to get (like for like) car wise and cost wise,another thing that would worry me,is the sky high cost of cars on the second hand market they are at a premium,and at some point in the not too distant future they will begin to drop in value and the car you have will more than likely take you into negative equity,unless you put a huge deposit down initially. And how is inflation going to play its part. Thanks for all your inputs above.

    MickC – Sounds like you should definitely stick with Motability. It’s not a wise move to jump ship if you are nervous about it or not in the financial position to do so. For most people, Motability will remain their best option. You are right that used prices are artificially high and that will only go one way. If we jump ship at the end of our current lease we will buy new. Lots of deals to be had (see my last post) so buying at inflated used prices doesn’t make great sense IMHO. We would order in time to allow for the long lead times and if delayed extend our Motability lease until it arrives, so it would be seamless

    As mentioned before though, your maths are flawed! You cannot get a Ford Kuga for £250 a month on Motability. The cheapest Kuga on Motability at present has an AP of £3,245 so you have to divide that by 36 months and add it to your sacrificed benefits to make a correct comparison. You are looking at an outlay of around £13,500 over 3 years (so £375 a month, not £250) or almost £17,000 if you keep the car 5 years – and you have nothing to show for it at the end.

    Motability is a great scheme (current poor choice aside) but it’s not the absolute bargain that many believe.

    #180966 Reply
    MickC
    Participant

    Are you all of the opinion that it is not possible to replicate (the car i have Ford Kuga) with all you get from Motability for the £250 per month on the open market,now ? Its looks like a minefield should you choose to jump ship,to get (like for like) car wise and cost wise,another thing that would worry me,is the sky high cost of cars on the second hand market they are at a premium,and at some point in the not too distant future they will begin to drop in value and the car you have will more than likely take you into negative equity,unless you put a huge deposit down initially. And how is inflation going to play its part. Thanks for all your inputs above.

    MickC – Sounds like you should definitely stick with Motability. It’s not a wise move to jump ship if you are nervous about it or not in the financial position to do so. For most people, Motability will remain their best option. You are right that used prices are artificially high and that will only go one way. If we jump ship at the end of our current lease we will buy new. Lots of deals to be had (see my last post) so buying at inflated used prices doesn’t make great sense IMHO. We would order in time to allow for the long lead times and if delayed extend our Motability lease until it arrives, so it would be seamless As mentioned before though, your maths are flawed! You cannot get a Ford Kuga for £250 a month on Motability. The cheapest Kuga on Motability at present has an AP of £3,245 so you have to divide that by 36 months and add it to your sacrificed benefits to make a correct comparison. You are looking at an outlay of around £13,500 over 3 years (so £375 a month, not £250) or almost £17,000 if you keep the car 5 years – and you have nothing to show for it at the end. Motability is a great scheme (current poor choice aside) but it’s not the absolute bargain that many believe.

    Good info @Glos Guy

    I did get a full grant for the AP last time,i would hope for the same next time fingers crossed,thats why i put £250 ish.

    It does bug me not having anything to show for all the £’s taken at the end,but there is a bonus !

    #180967 Reply
    MickC
    Participant

    Same car as mine treble the mileage,the cost is eye watering for me,double what it costs me on Motability.

    https://www.buyacar.co.uk/ford/kuga/kuga-estate/2-0-ecoblue-190-st-line-x-edition-5dr-auto-awd-94686/deal-4443558

    #180968 Reply
    Glos Guy
    Participant

    MickC – If someone else is paying your AP then it’s a no brainer to be in the scheme. Most of us have to pay our own. I wouldn’t even bother looking outside the scheme if I were you. You won’t get that support elsewhere, so it would be daft to leave.

    #180969 Reply
    Sue
    Participant

    Are you all of the opinion that it is not possible to replicate (the car i have Ford Kuga) with all you get from Motability for the £250 per month on the open market,now ? Its looks like a minefield should you choose to jump ship,to get (like for like) car wise and cost wise,another thing that would worry me,is the sky high cost of cars on the second hand market they are at a premium,and at some point in the not too distant future they will begin to drop in value and the car you have will more than likely take you into negative equity,unless you put a huge deposit down initially. And how is inflation going to play its part. Thanks for all your inputs above.

     

    I wouldn’t be trying to match it, just trying to have a vehicle that will get me from A to B. It wouldn’t be as suitable as a Motability vehicle but beggers can’t be choosers and it would be better than nothing.

    There wouldn’t be an issue with negative equity, mine would be purchased outright and sub 1k.

    #180970 Reply
    Sue
    Participant

    Are you all of the opinion that it is not possible to replicate (the car i have Ford Kuga) with all you get from Motability for the £250 per month on the open market,now ? Its looks like a minefield should you choose to jump ship,to get (like for like) car wise and cost wise,another thing that would worry me,is the sky high cost of cars on the second hand market they are at a premium,and at some point in the not too distant future they will begin to drop in value and the car you have will more than likely take you into negative equity,unless you put a huge deposit down initially. And how is inflation going to play its part. Thanks for all your inputs above.

    MickC – Sounds like you should definitely stick with Motability. It’s not a wise move to jump ship if you are nervous about it or not in the financial position to do so. For most people, Motability will remain their best option. You are right that used prices are artificially high and that will only go one way. If we jump ship at the end of our current lease we will buy new. Lots of deals to be had (see my last post) so buying at inflated used prices doesn’t make great sense IMHO. We would order in time to allow for the long lead times and if delayed extend our Motability lease until it arrives, so it would be seamless As mentioned before though, your maths are flawed! You cannot get a Ford Kuga for £250 a month on Motability. The cheapest Kuga on Motability at present has an AP of £3,245 so you have to divide that by 36 months and add it to your sacrificed benefits to make a correct comparison. You are looking at an outlay of around £13,500 over 3 years (so £375 a month, not £250) or almost £17,000 if you keep the car 5 years – and you have nothing to show for it at the end. Motability is a great scheme (current poor choice aside) but it’s not the absolute bargain that many believe.

    Good info @Glos Guy I did get a full grant for the AP last time,i would hope for the same next time fingers crossed,thats why i put £250 ish. It does bug me not having anything to show for all the £’s taken at the end,but there is a bonus !

    I didn’t know about the grants for my first car, knew about them but not how they really worked for my second car but when I rang asking for help with my third car they told me I had to extend for two years and maybe they will help then, despite the car presenting problems for me getting out on an increasing basis.

    I could have pushed it a bit more (I got a slightly better response the second time I rang) but with all the delays etc and everything else going on, I ran out of energy.

    #180973 Reply
    Glos Guy
    Participant

    Whilst inflated car prices present problems for those looking to buy used cars at present, they are resulting in very cheap motoring for many. I was talking to a dealer the other day and he told me that he is taking back cars in part exchange from customers at prices that are only a few hundred pounds less than the customer paid for them 2 or 3 years ago!

    Thinking about it, the two cheapest cars that I have ever run were the two oldest – one that was 8 years old and one that was 7 years old. I sold them both after 18-24 months for more than I had paid for them. Millions of people never spend more than a few thousand on a car, so their total motoring costs are always limited and would never come anywhere near to the £10k (plus AP) that we spend every 3 years on a Motability car. I suspect that a good number of those are the 1.2m people who are eligible to join Motability but choose not to. In the current cost of living climate, I suspect that many people who exist on benefits wouldn’t dream of spending £10k every 3 years on a new car when they can get from A to B at a fraction of the cost. Having a brand new car is a choice, not a necessity.

    #180974 Reply
    Sue
    Participant

    Whilst inflated car prices present problems for those looking to buy used cars at present, they are resulting in very cheap motoring for many. I was talking to a dealer the other day and he told me that he is taking back cars in part exchange from customers at prices that are only a few hundred pounds less than the customer paid for them 2 or 3 years ago! Thinking about it, the two cheapest cars that I have ever run were the two oldest – one that was 8 years old and one that was 7 years old. I sold them both after 18-24 months for more than I had paid for them. Millions of people never spend more than a few thousand on a car, so their total motoring costs are always limited and would never come anywhere near to the £10k (plus AP) that we spend every 3 years on a Motability car. I suspect that a good number of those are the 1.2m people who are eligible to join Motability but choose not to. In the current cost of living climate, I suspect that many people who exist on benefits wouldn’t dream of spending £10k every 3 years on a new car when they can get from A to B at a fraction of the cost. Having a brand new car is a choice, not a necessity.

    Youngest is one of those who is eligible for Motability but is quite happy to continue to run his own car that cost him 1k two years ago. It’s suitable for his needs and although he was tempted with getting a Motability vehicle, it didn’t make financial sense to him when his car suited him perfectly.

    I’m one of those who before getting Motability vehicles, would run around in sub £1k cars (more often than not sub £500 cars). It was only because it was difficult to get the sort of car that I needed second hand at the time and at the right amount, that I swapped over to Motability. Time has moved on now though and the sort of cars that would be suitable are now getting old enough to be cheap enough (for me), to purchase especially when the advance payments for vehicles on Motability now far exceed what I would be paying outright for a car.

    My last owned car was 18 years old, it sailed through the MOT in all the time I had it and then I sold it to my brother. I would have kept it if it wasn’t for the fact that I had to fall into it to get in and then had to be hauled out by others to get out of the begger and my hips and/or shoulders dislocating every time I had to change gear or put the handbrake on.

    #181002 Reply
    Warkman

    Remember if you go for a second hand cheap car, you will need to put aside money for repairs, which can be significant, no car to tied you over, plus if the engine goes, you are looking at £5,000 for replacement and fitting for example.

    #181003 Reply
    Glos Guy
    Participant

    Remember if you go for a second hand cheap car, you will need to put aside money for repairs, which can be significant, no car to tied you over, plus if the engine goes, you are looking at £5,000 for replacement and fitting for example.

    Not if you are running a car that cost a couple of grand or less. Faced with a bill of £5k you would scrap the car and buy another. Even in that unlikely worst case scenario, your total outlay of buying two very cheap cars would still be significantly less than the outlay with a Motability car. I know loads of people who run old and cheap cars. Yes, they are often having to get repairs done, but most aren’t expensive and their total outlay is but a fraction of what we pay to run our cars (which we hand back). Keep in mind that the biggest cost with a car is depreciation, something that doesn’t worry those running older cars. Those who wish to avoid the risk of any unexpected bills whatsoever, or who are insistent on a brand new car every 3 years, are obviously always best placed to have a Motability car. But this comes at a cost.

    #181013 Reply
    Sue
    Participant

    Remember if you go for a second hand cheap car, you will need to put aside money for repairs, which can be significant, no car to tied you over, plus if the engine goes, you are looking at £5,000 for replacement and fitting for example.

    I wouldn’t pay 5k for a new to me car, let alone for a new engine. I’d just scrap the car and get another for £500.

    I ran a £461 Ebay purchase for over 6 years and the upkeep/repairs/MOT averaged out at a couple of hundred at most a year. My last car before Motability cost me £750 and it cost me the grand total of £10 in repairs in almost 3 years (a dirty sensor), after that it was just the MOT fee which it sailed through each time and a couple of tyres and some oil.

    I’ve always had a courtesy car from the garage doing repairs or an MOT.

    #181014 Reply
    DumfriesDik
    Participant

    get another for £500. I ran a £461 Ebay purchase

    I’ve paid more than that for a mobility scooter!!

    • This reply was modified 4 months, 1 week ago by DumfriesDik.

    Mazda CX5 is my DD
    VW ID3 Max on order 5 Nov 21

    #181017 Reply
    Sue
    Participant

    get another for £500. I ran a £461 Ebay purchase

    I’ve paid more than that for a mobility scooter!!

    Yep, there’s bargains to be had if needs must.

    Ok, you have to take what is on offer and not have a long list of wants (mine was usually large boot  for the wheelchair and before that, a double pushchair and diesel) and know what to look out for to make sure it’s mechanically sound.

    I switched to Motability when my requirements couldn’t be found in the cheap second hand market and the current car was becoming painful and almost impossible to drive due to the deterioration of my health, only the far more expensive and unaffordable 2-5 year age group of cars but we are now more years down the line and those cars are now not too far from the target market.

    #181021 Reply
    Dante

    To be honest the premise and actual practical benefit of the scheme is hard to beat & it’s kept me mobile & improved my access for almost 25 years. So it has been beneficial in it core remit. The problem I have is the way it’s run, the lack of clarity and transparency & that it’s not putting us as customers first. The low numbers of cats available are slightly mitigated by the current / foreseeable climate but even in context motability operations could do much better strategically & operationally.

    but with respect leaving the scheme I have no savings nor pension and survive on basic benefits and as I’ve had debts & rent arrears too – I’d never get a loan nor indeed could I afford one. If I left I’d have to buy a second hand cheap suv and Hope for the best and that the £264 a month from April would cover insurance, repairs and anything else.
    I am hopeful that things will improve before I change again but if AP’s continue as there are or increase further then I’ll have no choice but to extend my current lease next year.

    #181023 Reply
    Glos Guy
    Participant

    To be honest the premise and actual practical benefit of the scheme is hard to beat & it’s kept me mobile & improved my access for almost 25 years. So it has been beneficial in it core remit. The problem I have is the way it’s run, the lack of clarity and transparency & that it’s not putting us as customers first. The low numbers of cats available are slightly mitigated by the current / foreseeable climate but even in context motability operations could do much better strategically & operationally. but with respect leaving the scheme I have no savings nor pension and survive on basic benefits and as I’ve had debts & rent arrears too – I’d never get a loan nor indeed could I afford one. If I left I’d have to buy a second hand cheap suv and Hope for the best and that the £264 a month from April would cover insurance, repairs and anything else. I am hopeful that things will improve before I change again but if AP’s continue as there are or increase further then I’ll have no choice but to extend my current lease next year.

    If you want to run a brand new car and are in your financial position Dante then I completely agree that Motability cannot be beaten. However, you are still paying £10,000 over 3 years or £17,000 over 5 years to keep mobile, even if you get a grant or a car with zero AP. I mean this with the greatest respect, but there are millions of people in employment or with pensions whose financial positions are far stronger than yours who wouldn’t dream of out laying that sort of money for a car and would never remotely consider getting a brand new car. It is no wonder that of the 1.8 million people who are in receipt of qualifying benefits and eligible to join the Motability scheme that only one-third choose to do so. I guess that a great number of the other 1.2 million would love a new car but simply cannot afford to surrender their benefits as they are needed for other things, especially in the current cost of living crisis.

    #181024 Reply
    Rene

    To be entirely fair here, that’s misleading.

    We’re talking the mobility part of PIP here, the part of PIP that’s specifically designed to be spent on transportation.

    If you can’t afford to spend it because you need the money to pay the bills, then that’s a problem with PIP itself. That part of the benefit is supposed to be spent on a car (or alternatives).

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