Motability changing policy on extending leases

  • Creator
    Topic
  • #251989
    MFillingham
    Participant

      From numerous posts on facebook group – including screenshots of a web chat – the automatic acceptance of a long term extension for cars is going to change.  From discussions 6 month extensions are possible but what the new policy will look like is yet to be seen.

       

      I’m guessing the return on a 2 year extension isn’t as profitable as forcing a new lease?

      • This topic was modified 6 months, 3 weeks ago by MFillingham.

      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

    Viewing 25 replies - 1 through 25 (of 57 total)
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      Replies
    • #251994
      kezo
      Participant

        You can guarantee its all about profits!

        I’m not a fan however, of lease extentions but, you can see why this amngst other things are driving people away…

        #251996
        MFillingham
        Participant

          Yes, with a requirement to build up a few thousand for the next AP, especially if you need to keep a relatively high spec EV, 5 years makes a huge difference to how much you can gather or how much you need to put aside each month.

          IF APs continue to stick around 2-4K for a good spec EV (Ioniq style offering) then either we’re saving or we have good level of savings to keep drawing from, unless of course you’re working still.

          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

          #251997
          Dragonfly
          Participant

            Many people, like me, extended the 3 year lease to a 5 year lease simply because of Covid. During the main infection periods/lockdowns we never went anywhere consequentially the car had very little mileage on it at the end of the 3 year lease.

            Before Covid I had always renewed the car after 3 years.

            Far away is near at hand in visions of elsewhere.

            #252002
            kezo
            Participant

              There are people on here who go for high AP’s with the intent on keeping for 5yrs to even out the upfront cost If what is said, is true, how will Motbility implement it (a) just bring it in and tuff or (b) at next lease?

              I cant see many wanting to go down the route of £5k+ AP’s anymore, If this is how they are going to be treated.

              How will it effect those comming to the end of their lease 9-10-11 months prior to their benifit award comming up for renewal or haven’t Motability thought about that!

              #252004
              Dragonfly
              Participant

                There are people on here who go for high AP’s with the intent on keeping for 5yrs to even out the upfront cost If what is said, is true, how will Motbility implement it (a) just bring it in and tuff or (b) at next lease? I cant see many wanting to go down the route of £5k+ AP’s anymore, If this is how they are going to be treated. How will it effect those comming to the end of their lease 9-10-11 months prior to their benifit award comming up for renewal or haven’t Motability thought about that!

                 

                A good point, with the higher APs it does make sense to spread the cost of the AP over 5 years rather than 3 years.

                I wonder what the effect a growing number of 5 years leases has on Motability’s financial model, it must have a detrimental effect or they wouldn’t feel the need to change.

                • This reply was modified 6 months, 3 weeks ago by Dragonfly.

                Far away is near at hand in visions of elsewhere.

                #252006
                Ioniq
                Participant

                  Not surprising really.

                  Motability will time  limit the terms of the lease.

                  They got to do that.

                  Three years ago my car cost £28K.

                  My current car cost £50k.

                  The high cost of new cars is limiting the lease period.

                  Motability need a return on selling lease end cars.

                  Its not something you get a vote on…except with your feet.

                   

                   

                  #252014
                  Callmejohn
                  Participant

                    I always have to pay a large AP to get a high spec car that meets my disability and can only afford that high AP if I  am able to spread the cost over a five year period. I will not be happy if I find out after the 3 year that I cannot extend a car that has only done 9 thousand miles.

                    I wonder how much this is to do with them not being able to shift 5 year old EVs with batteries improving so fast.

                     

                    #252015
                    kezo
                    Participant

                      I always have to pay a large AP to get a high spec car that meets my disability and can only afford that high AP if I am able to spread the cost over a five year period. I will not be happy if I find out after the 3 year that I cannot extend a car that has only done 9 thousand miles. I wonder how much this is to do with them not being able to shift 5 year old EVs with batteries improving so fast.

                      I doubt it has anything to do batteries because, if true it will effect all vehicles on the scheme and not just BEV’s, not that batteries are evolving at afast paceand were someway off the next advancement (solidstate) being mainstream..

                      It likely down to markets stabalising from the over inflated prices, especially in the used market and Motability getting use to them and don’t want their bloated profit tree to suffer with 5yr old cars!

                      #252017
                      MFillingham
                      Participant

                        Battery tech jumps in phases.  From where we are now, the next step will be a lighter, more power dense battery but that won’t be available in cars around scheme prices for a good few years yet.  Even then, there will be a market for those unable to afford new cars but who are willing to pay less for one capable of 95% of the original range.  Remember, high voltage warranties are 8 years, so even a fully extended EV at 5 years old has 3 years of fully covered use unless the car is approaching 100,000 miles.

                         

                        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

                        #252024
                        Southamman
                        Participant

                          If there are quite a few people who work on extending their lease to 5 years regularly, then you can understand why MO will look at each request carefully,nas their APs and profit assessment us made in 3 year old cars, not 5 year old.

                          Motability Operatiobs are not a charity and will look atthe bottom line especially in todays economy

                          I don’t know how many do extend, it would be interesting to know, but so would a list of which cars are being taken up on the scheme, but no chance of that company financial information

                          #252026
                          Jojoe
                          Participant

                            You’ve always been able to extend if your mileage is under 15,000 after 3 years. I can’t see this changing. Plus, remember there are only 829 vehicles on the scheme compared to well over 2500 a few years back, it’s a bit much for Motability to insist on you finding a new car every 3 years with such slim pickings and high AP’s.

                            #252049
                            Elliot
                            Participant

                              They have to pay for the Motability gravy train some way, hence getting people to keep changing vehicles and paying over inflated AP’s will ensure this.

                              #252222
                              MrHappy
                              Spectator

                                I like the idea of being able to extend my lease, I paid this whacking big Advance on my car and had to pay extra for adaptations and now after my lease ends, I get maybe £100 back for good condition. For my next new car I then have to pay another whacking big chunk of money, I do get some of it is covered by grants, but a lot of it isn’t, and when they sell my old car, they either restore it to the original condition and remove the adaptations or they sell as is and I am unable to buy it, they lose money maybe, but it costs me money too.

                                Where exactly are we supposed to get the money to pay for the new car advance, extras and adaptations? Other than from grants and savings, my point is this seems an unnecessary loss to the scheme, and to the person losing their car, so I think the extension is great on a vehicle that you are used to driving or being driven in?

                                #252235
                                Southamman
                                Participant

                                  Elliot. Inflated APs?

                                  Based on what proof?

                                  You go and look at any lease car scheme,bas that us what Motability us, see the deposits you have to pay, i.e, the AP, see the mileage limitations, see the monthly rentals,see the on cost for insurance, tyres, even sone servicing.

                                  If you think the APs are inflated, your having a laugh. If you actually said, I don’t want to pay tge aps or can’t afford ut for my brand new car every three years, whilst the peopke who are not disabled living around me and working hard can’t afford and deposit, that would be nearer the truth,

                                  Don’t lije tge APs? Don’t lease a mitability car, you are not forced to

                                  #252261
                                  Elliot
                                  Participant

                                    Elliot. Inflated APs? Based on what proof? You go and look at any lease car scheme,bas that us what Motability us, see the deposits you have to pay, i.e, the AP, see the mileage limitations, see the monthly rentals,see the on cost for insurance, tyres, even sone servicing. If you think the APs are inflated, your having a laugh. If you actually said, I don’t want to pay tge aps or can’t afford ut for my brand new car every three years, whilst the peopke who are not disabled living around me and working hard can’t afford and deposit, that would be nearer the truth, Don’t lije tge APs? Don’t lease a mitability car, you are not forced to

                                    Not you again!

                                    Of course the AP’s are inflated otherwise Motability wouldn’t generate the profits they make, have overly excessive offices in affluent locations, pay their staff above average salaries, give their staff there excessive benefits and above average bonuses.

                                    Who says that I will lease my next car from Motability. It will depend on whether there is a vehicle on the scheme that suits me. I leased my previous car, a BMW 4 series privately and may do the same again.

                                     

                                     

                                    #252262
                                    Ele
                                    Participant

                                      I feel this may apply to new leases if /when it is deemed to happen

                                      Although not directly affected there needs imo to be exclusion for those who have paid for their much needed expensive adaptations

                                      Happily swap my Megan E Tec after 3yrs if I was to get the same deal as this year,but I doubt that will happen,at least I was able to take advantage after it dropped over £4000 since it was first launchedd

                                      #252270
                                      Glos Guy
                                      Participant

                                        If profit is the sole driver, I can’t see them stopping lease extensions as these are highly profit generative for Motability. Those who extend by 2 years are gifting Motability an extra £7.5k in sacrificed benefits in return for additional running costs that will be well under £1k on average, plus a few grand extra depreciation. It’s a big money maker for them, which is why I’ve never done it!

                                        #252271
                                        Glos Guy
                                        Participant

                                          Of course the AP’s are inflated otherwise Motability wouldn’t generate the profits they make, have overly excessive offices in affluent locations, pay their staff above average salaries, give their staff there excessive benefits and above average bonuses

                                          Please don’t let facts such as these get in the way of the usual emotive responses when anyone dares to suggest that Motability isn’t holier than thou and that other viable options exist ? ?

                                          And if I could have a fiver for every time someone mentions the 60k mileage limit, as if that’s a major benefit, when most on this forum do under 10k miles a year ?

                                          #252273
                                          Callmejohn
                                          Participant

                                            Do we have any evidence that Motability are actually going to put a total ban on people being able to extend their lease for an extra 2 year and if so when does it start.

                                            #252276
                                            kezo
                                            Participant

                                              Do we have any evidence that Motability are actually going to put a total ban on people being able to extend their lease for an extra 2 year and if so when does it start.

                                              Nothing I have seen on Motability’s site suggests you can’t extend.

                                              https://www.motability.co.uk/get-support/faqs/can-i-extend-my-lease/

                                              #252378
                                              swwchris
                                              Participant

                                                Do we have any evidence that Motability are actually going to put a total ban on people being able to extend their lease for an extra 2 year and if so when does it start.

                                                Nothing I have seen on Motability’s site suggests you can’t extend. https://www.motability.co.uk/get-support/faqs/can-i-extend-my-lease/

                                                 

                                                Ah but the OP read it on social media so it must be true

                                                #252381
                                                kezo
                                                Participant

                                                  Do we have any evidence that Motability are actually going to put a total ban on people being able to extend their lease for an extra 2 year and if so when does it start.

                                                  Nothing I have seen on Motability’s site suggests you can’t extend. https://www.motability.co.uk/get-support/faqs/can-i-extend-my-lease/

                                                  Ah but the OP read it on social media so it must be true

                                                  To be fair @MFillingham tends to post facts and is sensible enough to make sure they are facts and provide evidence. The screenshots of the webchat can be seen FB and were most likely from some ill advised Mobility rep, giving out the wrong advice or a sign of whats to come 🙂

                                                  #252387
                                                  MFillingham
                                                  Participant

                                                    Do we have any evidence that Motability are actually going to put a total ban on people being able to extend their lease for an extra 2 year and if so when does it start.

                                                    Nothing I have seen on Motability’s site suggests you can’t extend. https://www.motability.co.uk/get-support/faqs/can-i-extend-my-lease/

                                                    Ah but the OP read it on social media so it must be true

                                                    To be fair @MFillingham tends to post facts and is sensible enough to make sure they are facts and provide evidence. The screenshots of the webchat can be seen FB and were most likely from some ill advised Mobility rep, giving out the wrong advice or a sign of whats to come ?

                                                     


                                                    @kezo
                                                    , thanks mate, I do try and keep to the facts wherever possible.

                                                     


                                                    @swwchris
                                                    It’s not impossible that this turns out to be nothing but I did see a bunch of screenshots with Motability chat which stated that the policy was changing to 6 months.  It might well turn out to be nothing or it could be exactly as discussed but I know I, for one, was planning a long term lease as that enables saving of the required AP and a proper update of the EV market on scheme.  It would be nice for the next car to be a step forward from the one planned for next month.

                                                    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

                                                    #252460
                                                    Avatar photoCF21LEE
                                                    Participant

                                                      I spoke to Motability today as I am due to order a new car exactly 2 months today I said the current mileage 12,000 miles. Saw my mileage history on their system from the service records I average 5,000 a year and the lady said no problem and I can apply for a 2 year extension on 27th Feb. She said more or less under 20,000 miles there no issue to get a lease extension.

                                                      Current Car Citroën C4 1.2 155 EAT8 Shine Plus

                                                      Citroën Fanatic.

                                                      #252461
                                                      MrHappy
                                                      Spectator

                                                        Just got my pin and new contract today and it’s still the standard clause

                                                        DURATISN OF HIRE (yes they made 2 typos’)
                                                        The Hire Term is for a minimum period of three years starting on the date of delivery of the
                                                        Vehicle (the “Minimum l-lire Term”), but continuing thereafter until either the expiry of a period
                                                        of twenty four months following the Minimum Hire Term (the “Maximurn Hire Term”) or the
                                                        date on which this Agreement is terminated in accordance with the terrns set out in the
                                                        Contract Hire Terms and Conditions (Ref T&Cs – 08/23){the “Conditions”), whichever is the
                                                        earlier”

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