Motability changing policy on extending leases

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    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 - 26 through 50 (of 57 total)
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    • #252509
      fwippers
      Participant

        Interesting thread, and as always, pros and cons. Not sure how the maths work out, but I imagine used 5 year old cars are less appealing io dealers who generally buy them at the end of the lease.

        #252510
        MrHappy
        Spectator

          Yes, definitely different sides to the issue. I imagine they may be less appealing to the dealers but more appealing to the customers, although, the price of a car usually drops in the first 1-2 years, so might not be as bad for 5 years. Still, pros and cons as you say, you would think a car would be cheaper to Motability if was leased for a longer period of time and from my understanding any adjustments are removed from the vehicle to remove it to normal before it goes back to the dealer, so all those extras, adaptations and modifications that people had to make to their car are lost and have to be redone on their next car, so it is quite understandable someone wanting to save themselves some money, not have to pay to have this done again, they might have gotten used to the car and may have done low mileage etc, on it. Many things to consider.

          #252512
          MFillingham
          Participant

            Interesting thread, and as always, pros and cons. Not sure how the maths work out, but I imagine used 5 year old cars are less appealing io dealers who generally buy them at the end of the lease.

            As 5 year old cars go a low mileage Motability car is far more appealing than one from its second owner with considerably more 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

            #252634
            Glos Guy
            Participant

              UPDATE ON NEW LEASE EXTENSION POLICY

              I had to call Motability this morning about an unrelated issue and the person I spoke to was extremely helpful and informative. I mentioned that we might be forced to leave the scheme at renewal due to the poor choice of larger vehicles and Motability’s obsession with EVs and PHEVs. I’ve updated on that bit of the discussion on the quarter 1 thread, but the operator said “of course, you have the option to extend the lease”. I replied that I wasn’t keen on lease extensions, as they were a very poor deal financially for the customer (sacrificing the same level of benefits for a 3-5 year old car) but that at least by extending for two years we could order at any time within that window.

              At this point, the operator said that they needed to inform me that the policy had changed and the lease extension now would be restricted to 6 months. They would consider exceptions to this on a case by case basis, but these exceptions would mostly be where there are adaptations to the car and possibly (but less certain) very low mileage. The cost of the AP or level of options added wasn’t mentioned as a factor.

              So it is true, and those who order a car with a high AP and /or add a lot of optional extras may wish to be aware that thinking that they can ‘depreciate’ that outlay over 5 years may not be able to do so. Of course, there’s nothing stopping people from making a case on that basis, but the automatic right to extend for 2 years seems to be going. Interesting as I’m sure I read that @POPS said that he’d just extended by 2 years?

              • This reply was modified 6 months, 2 weeks ago by Glos Guy.
              #252641
              Dragonfly
              Participant

                Just a thought but I wonder if the change in the lease extentions policy might be Motability wanting to limit their financial exposure to electric vehicle battery issues in the future. Most manufacturer warranties last between three to seven years, depending on the manufacturer so limiting the lease period to 3 years removes any financial eposure to a battery replacement.

                I would imagine that a battery replacement wouldn’t be cheap.

                • This reply was modified 6 months, 2 weeks ago by Dragonfly.

                Far away is near at hand in visions of elsewhere.

                #252648
                kezo
                Participant

                  Just a thought but I wonder if the change in the lease extentions policy might be Motability wanting to limit their financial exposure to electric vehicle battery issues in the future. Most manufacturer warranties last between three to seven years, depending on the manufacturer so limiting the lease period to 3 years removes any financial eposure to a battery replacement. I would imagine that a battery replacement wouldn’t be cheap.

                  Battery warranty is quoted seperately to the vehicle warranty and is on average 8 years.

                  #252649
                  Badwolfe
                  Participant

                    It might be a consideration though. If there is a car on the scheme that only guarantees the battery for three years then I suppose Motability would take the shortest timeframe as the one to use to avoid paying for a new battery on any vehicle.

                    #252650
                    Oscarmax
                    Participant

                      UPDATE ON NEW LEASE EXTENSION POLICY I had to call Motability this morning about an unrelated issue and the person I spoke to was extremely helpful and informative. I mentioned that we might be forced to leave the scheme at renewal due to the poor choice of larger vehicles and Motability’s obsession with EVs and PHEVs. I’ve updated on that bit of the discussion on the quarter 1 thread, but the operator said “of course, you have the option to extend the lease”. I replied that I wasn’t keen on lease extensions, as they were a very poor deal financially for the customer (sacrificing the same level of benefits for a 3-5 year old car) but that at least by extending for two years we could order at any time within that window. At this point, the operator said that they needed to inform me that the policy had changed and the lease extension now would be restricted to 6 months. They would consider exceptions to this on a case by case basis, but these exceptions would mostly be where there are adaptations to the car and possibly (but less certain) very low mileage. The cost of the AP or level of options added wasn’t mentioned as a factor. So it is true, and those who order a car with a high AP and /or add a lot of optional extras may wish to be aware that thinking that they can ‘depreciate’ that outlay over 5 years may not be able to do so. Of course, there’s nothing stopping people from making a case on that basis, but the automatic right to extend for 2 years seems to be going. Interesting as I’m sure I read that @POPS said that he’d just extended by 2 years?

                      I would be inclined to wait to see as regards lease extensions, the call handlers are just that call handlers, it is the big chiefs who make the decisions.

                      As regards EV this is the way the industry is heading whether we like it or not, in the end I change to a full EV

                      #252652
                      MrHappy
                      Spectator

                        I did see the 6 month rule when signing my contract, but had thought it was normal, this being my first Motability car, but it does say it is an initial 6 months renewable up to 2 years, I think.

                        #252653
                        MFillingham
                        Participant

                          It might be a consideration though. If there is a car on the scheme that only guarantees the battery for three years then I suppose Motability would take the shortest timeframe as the one to use to avoid paying for a new battery on any vehicle.

                           

                          You really do have it in for EVs don’t you.  There is now new car in the country that places a 3 year warranty on the high voltage components.  The average manufacturer puts 8 years with the occasional longer warranty, all with high mileage allowances.

                           

                          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

                          #252654
                          Badwolfe
                          Participant

                            It might be a consideration though. If there is a car on the scheme that only guarantees the battery for three years then I suppose Motability would take the shortest timeframe as the one to use to avoid paying for a new battery on any vehicle.

                            You really do have it in for EVs don’t you. There is now new car in the country that places a 3 year warranty on the high voltage components. The average manufacturer puts 8 years with the occasional longer warranty, all with high mileage allowances.

                            What has my comment got to do with my opinion on EV’s in the slightest? I have no idea what warranty any manufacturer puts on their batteries. I was giving an opinion on why Motability would want to put a timescale on leases based on how long warranties are. The previous poster said 3 – 8 years so I just took their example to say that it makes economic sense then to use the lowest warranty timeframe as a way to ensure they limit their maintenance costs.

                            Had this been a discussion about something on an ICE vehicle that involved a warranty I would have said exactly the same thing.

                            I don’t even know where you seem to think me pointing out an economic possibility means I ‘have it in for EVs’

                            Just to set the record straight for you so you don’t have to make suppositions in future I don’t ‘have it in’ for EV’s, in fact I think they are the best solution for some people under the right conditions. I just don’t feel the need to defend them under every eventuality because, newsflash, in some situations they are the worst solution.

                            This mentality that some people have that you’ve got to love either ICE or EV exclusively is both funny in its fanaticism and sad in its immaturity

                            #252655
                            Avatar photoPOPS
                            Moderator

                              Glos Guy, I did indeed extend my lease by two years a few days ago. I did it online and got a confirmation email that my lease had been extended for two years and that Motability would continue taking my payments during the extension period almost immediately. It was a very simple process.

                              • This reply was modified 6 months, 2 weeks ago by Avatar photoPOPS.
                              #252658
                              kezo
                              Participant

                                Battery warranty is quoted seperately to the vehicle warranty and is on average 8 years.

                                My previous reply can be taken as correct!

                                Back on topic….

                                #252675
                                Glos Guy
                                Participant

                                  @Oscarmax I’m fully aware that the people who take the calls aren’t the decision makers. However, this person wasn’t clutching at straws or making it up as they went along. They were very knowledgeable and when the subject of us possibly leaving the scheme came up they raised the subject of an extension. It was only when I mentioned extending for 2 years but changing at any time within that period that they said to me that the policy had now changed.

                                  I would be prepared to take them on about this, as I added a few grands worth of options and would say that when we took out the lease I factored in the fact that the rules at the time allowed an extension of up to 2 years  (not really true, as I think lease extensions are usually a poor financial decision), so would expect them to honour it. What I most definitely would not wish to do though is extend for a fixed two years. It would only be if we could change at any time within the two years.

                                  I do think that those ordering now, since the rule change, should do so with their eyes open and not assume that having it for 5 years will be an option, as it looks like it may not be. Hopefully there’s some discretion for those who ordered before the rule change though

                                   

                                  #252677
                                  Glos Guy
                                  Participant

                                    Glos Guy, I did indeed extend my lease by two years a few days ago. I did it online and got a confirmation email that my lease had been extended for two years and that Motability would continue taking my payments during the extension period almost immediately. It was a very simple process.

                                    Thanks. I thought that was what you’d said. Have you been told that you still have the ability to order at any time in that two years, or is it now a fixed 2 years? As I said in my last post, I would hope that they would be open to the flexible extension for cars that were ordered prior to the rule change.

                                    #252693
                                    Oscarmax
                                    Participant

                                      @Oscarmax I’m fully aware that the people who take the calls aren’t the decision makers. However, this person wasn’t clutching at straws or making it up as they went along. They were very knowledgeable and when the subject of us possibly leaving the scheme came up they raised the subject of an extension. It was only when I mentioned extending for 2 years but changing at any time within that period that they said to me that the policy had now changed. I would be prepared to take them on about this, as I added a few grands worth of options and would say that when we took out the lease I factored in the fact that the rules at the time allowed an extension of up to 2 years (not really true, as I think lease extensions are usually a poor financial decision), so would expect them to honour it. What I most definitely would not wish to do though is extend for a fixed two years. It would only be if we could change at any time within the two years. I do think that those ordering now, since the rule change, should do so with their eyes open and not assume that having it for 5 years will be an option, as it looks like it may not be. Hopefully there’s some discretion for those who ordered before the rule change though

                                      I am not disagreeing with you, but the little people are only feed rumours, I paid a high £6999 AP which went down the next corner to £5299 I anticipate extending the lease to 5 years to cover the high AP, if and it a big if, they the big chiefs decide to stop the 2 year extensions i will seriously miffed and may look elsewhere after our lease.

                                      #252698
                                      Glos Guy
                                      Participant

                                        @Oscarmax The operator was most certainly not discussing rumours. It’s a definite policy change. However, they have left the door ajar by saying that they will consider exceptions. IMHO, paying a very high AP should be one of those exceptions and, for those who ordered prior to the policy change, I’m sure that it will be accepted as one.

                                        Much as I love our current car, I don’t want it for 5 years as, in my eyes, it’s not financially viable, but I might want the option to extend for 2 years as long as I can order a new car, or leave the scheme, at any time within that 2 years. If nothing better comes on the scheme by April (when we can order) I shall be putting this to the test.

                                        #252721
                                        Markymate
                                        Participant

                                          Today was the first day I could order a new vehicle, but decided I want to wait and see if the second generation Kodiaq will come on later in 2024.  So, today I went on to my Motability account and extended, only one choice, two years extension. Clicked the mouse and it was done, nice and easy, didn’t even ask for my mileage on the Tarraco.  And like Pops said, I received an email confirming it within the minute.

                                          Very easy indeed.

                                          #252722
                                          Glos Guy
                                          Participant

                                            Today was the first day I could order a new vehicle, but decided I want to wait and see if the second generation Kodiaq will come on later in 2024. So, today I went on to my Motability account and extended, only one choice, two years extension. Clicked the mouse and it was done, nice and easy, didn’t even ask for my mileage on the Tarraco. And like Pops said, I received an email confirming it within the minute. Very easy indeed.

                                            Does it say that you can order at any time within the two years, as opposed to a fixed 2 year extension?

                                            #252725
                                            MFillingham
                                            Participant

                                              Could this be the Q1 change we didn’t want?

                                              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

                                              #252727
                                              MLH
                                              Participant

                                                I extended mine last month due to not having my new wheelchair in time to check the boot sizes of prospective replacements.

                                                It just said I am extended for 2 years, but can change at any time within that period with no penalty.

                                                 

                                                #252745
                                                Glos Guy
                                                Participant

                                                  I extended mine last month due to not having my new wheelchair in time to check the boot sizes of prospective replacements. It just said I am extended for 2 years, but can change at any time within that period with no penalty.

                                                  Can I just ask, did you make the 2 year extension online or by phone? Also, did the wording online (or said by the operator if you called) specifically state that you could change at any time within that 2 years? I know that’s always been the case previously (you could extend by 1 or 2 years and change at any time within that) and hopefully it still is, as I may wish to do this myself, but as mentioned earlier I was specifically told yesterday that the automatic extension facility is reducing to 6 months and anything longer is only by exception. Knowing my luck, the change will have been implemented by the time our order window opens in April ?

                                                  #252748
                                                  wmcforum
                                                  Which Mobility Car

                                                    Sent via email from a valued member:

                                                    It’s the auto extension renew that’s been changed which will come in to force April 2024.

                                                    Currently, in the 3 months prior to your 3 year lease ending-Motability will write to you, to gauge your intention when your 3 year lease expires. Within this 3 month timeframe-if you don’t respond to Motability to advise your intent-the lease extension will automatically come in to force-but will only be for 6 months which you cannot then extend. If, however, you respond and advise Motability of your intention within the aforementioned 3 months prior to your lease expiring-you are able to request the still to be available 2 year lease extension, so long as all criteria for such is met-such as good condition of the vehicle, it still suits your needs and the mileage is under the 60,000 limit.

                                                     

                                                    #252749
                                                    Glos Guy
                                                    Participant

                                                      Sent via email from a valued member: It’s the auto extension renew that’s been changed which will come in to force April 2024. Currently, in the 3 months prior to your 3 year lease ending-Motability will write to you, to gauge your intention when your 3 year lease expires. Within this 3 month timeframe-if you don’t respond to Motability to advise your intent-the lease extension will automatically come in to force-but will only be for 6 months which you cannot then extend. If, however, you respond and advise Motability of your intention within the aforementioned 3 months prior to your lease expiring-you are able to request the still to be available 2 year lease extension, so long as all criteria for such is met-such as good condition of the vehicle, it still suits your needs and the mileage is under the 60,000 limit.

                                                      Thanks. That’s very useful, not least the fact that the change comes into effect in April. Has this person confirmed that the 2 year extension will still allow a change at any time whatsoever within the two years? My worry is that if they are making changes they might remove that facility and it becomes a fixed 2 years extension, which I wouldn’t want to do. I would be wary of just making an assumption that this is still the case without having it in writing.

                                                      • This reply was modified 6 months, 2 weeks ago by Glos Guy.
                                                      #252751
                                                      BigDave
                                                      Participant

                                                        Sent via email from a valued member: It’s the auto extension renew that’s been changed which will come in to force April 2024. Currently, in the 3 months prior to your 3 year lease ending-Motability will write to you, to gauge your intention when your 3 year lease expires. Within this 3 month timeframe-if you don’t respond to Motability to advise your intent-the lease extension will automatically come in to force-but will only be for 6 months which you cannot then extend. If, however, you respond and advise Motability of your intention within the aforementioned 3 months prior to your lease expiring-you are able to request the still to be available 2 year lease extension, so long as all criteria for such is met-such as good condition of the vehicle, it still suits your needs and the mileage is under the 60,000 limit.

                                                        Thanks. That’s very useful, not least the fact that the change comes into effect in April. Has this person confirmed that the 2 year extension will still allow a change at any time whatsoever within the two years? My worry is that if they are making changes they might remove that facility and it becomes a fixed 2 years extension, which I wouldn’t want to do. I would be wary of just making an assumption that this is still the case without having it in writing.

                                                         

                                                        GG,

                                                        A fellow war pensioner who is on the scheme extended the lease on his vehicle in the past few days. He kindly forwarded me the confirmation e-mail he received from Motability:

                                                         

                                                         

                                                        Hi xxxxx

                                                        Your lease agreement has been extended. Your new handback date is 29 Jan 2026.

                                                        Your lease benefits will stay the same.

                                                        There are no changes to what is included in your lease. Your insurance, tyres and breakdown cover stay the same. Direct Line Motability will send you new insurance documents within the next 7 days.

                                                         

                                                        Lease extensions are flexible

                                                        You can start a new application at any time. You will not be charged for handing your vehicle back early during your extension.

                                                         

                                                        MOT
                                                        Please remember if you live in England, Scotland or Wales your MOT is due before your lease extension starts. Please contact your dealer to arrange this.

                                                        If you did not make this request, please contact us online or call us on 0300 456 4566.
                                                        We are Motability Operations Limited, all Motability Scheme vehicles are leased to customers by us. Motability Operations Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales Co No 1373876. Registered address: Motability Operations Limited, City Gate House, 22 Southwark Bridge Road, London, SE1 9HB.
                                                        We are committed to protecting and safeguarding your personal data. View our privacy notice here.

                                                         

                                                        So, as per his confirmation e-mail, he can place a new order at any point within his 2 year extension.

                                                        Incidentally, as he is a WP, he also received confirmation of the current rebate of £8.25 per week during the lease extension – so nothing has changed with that either.

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