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, 4 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 7 replies - 51 through 57 (of 57 total)
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      Replies
    • #252752
      Glos Guy
      Participant

        Many thanks @BigDave Let’s hope that the flexible extension facility remains after the April policy change comes into place.

        I’m happy to extend in April (when our order window opens) if nothing suitable has come onto the scheme by then, but only with the ‘flexibility to change at any time within the 2 years’ option remaining. This would mean that I could order immediately if a new addition appeals, or leave the scheme if I find a better car to buy privately.

        • This reply was modified 6 months, 2 weeks ago by Glos Guy.
        #252759
        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.

          Yes, the email confirmed I could order any time in the two year extension, under lease extensions are flexible paragraph.

          #252760
          Glos Guy
          Participant

            Thanks @Markymate As I say, let’s hope that the flexibility to change at any time option remains after the April policy change.

            #252802
            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.

              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 ?

               

              Sorry, first time on today. I did it on the motability website, and it said you can change without penalty at anytime within the extension period. Any bonus would be awarded pro-rata if you do change, iirc.

              It was literally two clicks and done. Maybe they’re going to change it so the extensions are done in 6m increments and you’ll be tied in, or something.

              #252819
              Elliot
              Participant

                I think I would find it hard to justify paying a high AP if the lease was restricted to 3 years.

                #254017
                pauld
                Participant

                  Email received after i emailed motorbility that the car i got ,i planned for 5year lease..

                   

                   

                  Thank you for the prompt response to our email, sent 4 January 2024.

                  I would like to apologise that the information was not made clearer, during your previous communications with Motability Operations. I have enclosed additional information regarding the changes to lease extensions over the last few years, and hope this is helpful.

                   

                  Motability Operations introduced the automatic six month extension back in 2019, as a temporary solution to ensure customers were kept mobile during Cov-id. As you may be aware, during the last few years there has a great deal of vehicle manufacturing disruption. This disruption was mainly caused by a shortage of micro-chips and components and caused significant delays on new car orders and production. As a result, we increased the lease extension option to two years to ensure customers continued to be supported. I can confirm that these issues are now mainly resolved and cars are becoming available more quickly. Consequently, Motability Operations have made the decision to revert back to the criteria set out prior to covid.

                   

                  I can confirm the lease extension facility is not part of your contractual agreement. As such, we have not sent out communications regarding these changes on social media or as letters to customers at the current time. However, this will be provided to customer when their renewal letters are sent at the end of their agreement. When a lease extension is requested we will discuss your needs and how your vehicle supports you currently. Please be assured, we review every lease extension request on a case by case scenario and will aim to offer you the best solution to ensure you are kept mobile in a vehicle that suits your personal needs. Though I do appreciate forums can be helpful in finding out information and discussing the facilities the Scheme offers. I would like to explain that decisions relating to each customer’s agreements are tailormade to their individual needs. This means that sometimes different decisions are offered and advise given.

                   

                  It may be helpful to know there are some exceptions where a lease extension can be offered automatically, these are listed below : –

                   

                  Where a vehicle is heavily adapted
                  Where the vehicle has very low mileage
                  I appreciate that the vehicle you have chosen carries a large Advance Payment (AP) and the lease extension was a consideration when choosing the car. Although we are unable to predict what AP prices will look like in three year’s time. It may be useful to know that the Motability Foundation may be able to assist with the AP on your next replacement vehicle, if you do not have the funds available at the end of your agreement. Should your vehicle still suit your needs, the foundation may authorise an extension of your current vehicle as an alternative, to providing a grant towards the new AP. However, this will need to be discussed closer to your renewal period at the end of the new agreement.

                   

                  I would like to thank you again for contacting us and raising your concerns. I hope my explanations have provided some reassurance and helped to put you mind at ease. Should you need any further assistance please feel free to contact us again.

                   

                   

                  Yours sincerely

                   

                   

                   

                  #254024
                  MrHappy
                  Spectator

                    I personally don’t find that the delays have been resolved, Skoda said the wait time for a fresh factory order is 6-18 months and Hyundai quoted 6-8 months for a new order, I went with a car delivered from port and it is 1 month already and it hasn’t even arrived at the dealer yet.

                    Does anyone feel the delays have been resolved, from what I understand there is a shortage of micro chips because there are so many back orders for them from the COVID period?

                  Viewing 7 replies - 51 through 57 (of 57 total)
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