Motability extension.

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    Topic
  • #375977
    ianto
    Participant

      I have just had an email from Motability asking if I want to extend my current lease which expires in November by 15 months. The reason being is that when Covid was around many people extended and now they are all ending at similar times. They want an answer by the 8th August. Anyone else had this. ?

    Viewing 20 replies - 1 through 20 (of 20 total)
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      Replies
    • #375978
      ChrisK
      Participant

        The wind of changed is changing again as I thought they were discouraging us from extensions.

        #375979
        MFillingham
        Participant

          It seems a large number took out leases or received orders that had been waiting a while 3 years ago.  They’ve decided to manage the demand for renewals and hand backs by offering extensions of various lengths.

          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

          #375981
          Jojoe
          Participant

            Anyone who watches car dealers on YouTube will know the answer. The used car market is on its arse, dealers are struggling as people aren’t buying. Motability are reluctant to send so many cars to auction whilst the used car market is so bad. They’re edging their bets in the hope the market will recover in 15 months.

            #375987
            Glos Guy
            Participant

              Anyone who watches car dealers on YouTube will know the answer. The used car market is on its arse, dealers are struggling as people aren’t buying. Motability are reluctant to send so many cars to auction whilst the used car market is so bad. They’re edging their bets in the hope the market will recover in 15 months.

              I’ve heard the same. For those considering leaving Motability, it’s a great time to buy a used car. Used car dealers are even selling at a loss as they need the cash flow to cover their huge outgoings (rent, business rates, Autotrader fees etc).

              #375988
              kezo
              Participant

                Anyone who watches car dealers on YouTube will know the answer. The used car market is on its arse, dealers are struggling as people aren’t buying. Motability are reluctant to send so many cars to auction whilst the used car market is so bad. They’re edging their bets in the hope the market will recover in 15 months.

                I regular watch car dealers on YT.

                However, Motability can’t go changing their recent rules to suit their whims, especially when so many have been disappointed at not being able to extend, when they wanted to!

                Motability are making a mockery of the whole system!!

                #375989
                James295
                Participant

                  Motability is the UK’s biggest car purchaser.

                  So it seems to me to make better financial sense to have varying lease lengths rather than to flood the used car market with 3 year old cars.

                  Especially if many private lease companies also have 3 year lease terms.

                  #375990
                  Jojoe
                  Participant

                    However, Motability can’t go changing their recent rules to suit their whims, especially when so many have been disappointed at not being able to extend, when they wanted to!

                    Motability are making a mockery of the whole system!!


                    @kezo
                    , Totally agree, so many on here wanting to extend as they’ve  paid high AP’s and were expecting to be able to extend. Now Motability are on struggle street they’re changing the rules.

                    #375992
                    chastw
                    Participant

                      I left Motability in March after requesting an extension the previous November and was refused.
                      I have had four Nissan Qashqai on the scheme, last one 16k miles, all other under 23k miles.

                      Last week a relative of mine who has a Motability car has been offered an extension, without asking for an extension.

                      Even though I enjoyed I enjoyed the time on Motability, I am pleased I left the scheme due to the selective and discriminatory way the scheme is run by the administrators.

                      #376003
                      Wirralsean
                      Participant

                        I have had the same email offering a 15 month extension. It also states that I will remain on the same lease terms.

                        Are they the original lease terms that I signed up for in November 2023 that stated I could extend for 24 months.

                        I might contact them to ask why only 15 months as apposed to the 24 months in my original lease.

                        Either way I will be extending as it suits me as I really like the car I have but I would have liked the 24 months.

                        #376007
                        Callmejohn
                        Participant

                          As much as it suits me to extend my lease to 5 years,  due to having to put down a large AP, to get a car that meets my needs, I wonder if Motability are simply offering these extensions to cut costs/make more profit.

                          As surly by offering a 3 plus year old car for the same leasing price as they were charging for a new to 3 year old car, without any reduction in the monthly leasing cost to us, they will be better off. Allowing that extra running costs should be covered by the annual increase in pip and also the car will be decreasing in value at a slower rate after the initial first 3 years. Also a few cars offer longer warranties now.

                          I also wonder if they are offering these extensions to people with low mileage cars, that have been checked when their car has been in for the early MOT/car inspection.

                          It would be interesting to get members feedback.

                          • This reply was modified 2 weeks, 2 days ago by Callmejohn.
                          #376009
                          Callmejohn
                          Participant

                            Anyone who watches car dealers on YouTube will know the answer. The used car market is on its arse, dealers are struggling as people aren’t buying. Motability are reluctant to send so many cars to auction whilst the used car market is so bad. They’re edging their bets in the hope the market will recover in 15 months.

                            I regular watch car dealers on YT. However, Motability can’t go changing their recent rules to suit their whims, especially when so many have been disappointed at not being able to extend, when they wanted to! Motability are making a mockery of the whole system!!


                            @kezo
                            Unfortunately, as has been seen, very lately, Motability can and do now change their rules as and when they want, to simply to suit themselves and the Government, with apparently no regulatory body to answer to. They are now also clearly working in close partnership with a Government, which is supposed to be impartial and largely unatatched.

                            #376012
                            Glos Guy
                            Participant

                              As much as it suits me to extend my lease to 5 years, due to having to put down a large AP, to get a car that meets my needs, I wonder if Motability are simply offering these extensions to cut costs/make more profit. As surly by offering a 3 plus year old car for the same leasing price as they were charging for a new to 3 year old car, without any reduction in the monthly leasing cost to us, they will be better off. Allowing that extra running costs should be covered by the annual increase in pip and also the car will be decreasing in value at a slower rate after the initial first 3 years. Also a few cars offer longer warranties now.

                              Spot on. For a 24 month extension the customer is paying Motability almost £9,000 in additional sacrificed benefits. For a 15 month extension £5,400.

                              For the average Motability car, I suspect that servicing, MOT and tyres over this period is no more than £1,000. Even allowing for the usual costs (insurance etc), the money that they take in for an extension is way more than the added depreciation over this period (as you say, the biggest hit has already happened). This is why I’ve never been a fan of extensions as they aren’t good value for the customer, but with APs being so ludicrously high these days, and vehicle choice being so poor, I can see why people are attracted to them.

                              However, given that with the combination of full VAT exemption plus their huge negotiating power, Motability probably get 40-50% discount off all new cars, plus rake in £13k in sacrificed benefits from every 3 year lease, they make a tidy profit on every new car as well!

                              #376013
                              MickC
                              Participant

                                Motability looking after No1…while pretending to look after No2 (you and me).

                                #376018
                                Glos Guy
                                Participant

                                  Motability looking after No1…while pretending to look after No2 (you and me).

                                  They have to pay for those gold plated salaries, bonuses, pensions & benefits for every one of their employees some how! I have to say that, having recently left Motability, it’s a good feeling to know that we are no longer paying for all of that excess.

                                  #376023
                                  ChrisK
                                  Participant

                                    MB really do my head in, I would have loved to have kept my previous car another 15 months but best I got was 3 if I remember correctly, that I turned down.

                                    Today that car has been sat on a dealers lot for 5 months with a much reduced below market price and with much of a cars carbon footprint being tied up in the manufacture of the car in the first place I’ve had to add to the footprint by being forced into a new car.

                                    This is why I say “to hell with net-zero”.

                                     

                                     

                                    #376032
                                    kezo
                                    Participant

                                      @kezo Unfortunately, as has been seen, very lately, Motability can and do now change their rules as and when they want, to simply to suit themselves and the Government, with apparently no regulatory body to answer to. They are now also clearly working in close partnership with a Government, which is supposed to be impartial and largely unatatched.

                                      Looking at the recent changes..

                                      “From 16 December 2025, long lease extensions of up to two years will no longer be available. Only short-term extensions of around six months will be offered, and approval will be much stricter. Motability says this change reflects a return to normal vehicle supply levels and aims to keep the fleet newer and more efficient.”

                                      Barely 7 months have passed and it seems the rules are being changed again. These changes give the scheme user a false sense of security, that in 15 months, they may order a new vehicle, with an AP out of their financial comfort zone under a false promise, they will be offered the same in 3 years time, but there is no guarantee they will and they remain dependant on the whim of Motability at the time!

                                      Any changes on a whim, are to protect Motability and not the user. You have only got to look at the changes to the scheme surrounding the governments implementation of VAT and to a lesser extent IPT.

                                       

                                       

                                      #376036
                                      Mike
                                      Participant

                                        It would serve Motability right if everyone offered a lease extension declined it.

                                        However, I can see that may be viewed in some circumstances as cutting off one’s nose to spite one’s face, particularly in cases where funds are tight for a new AP. It gives those an extra 15 months to save.

                                        Motability know this and it is why they get away with stunts like this.

                                        However, it would be nice to know how customers are selected to be offered these lease extensions. Is it purely down to return date or mileage? Or does type or make of vehicle have anything to do with it, say if they have loads of Qashqai due to be retuned in the same period.

                                        It is all very opaque and appears to be a pure game of chance. It is certainly very unfortunate for those who have previously been denied such an extension.

                                        #376037
                                        Callmejohn
                                        Participant

                                          Once

                                          @kezo Unfortunately, as has been seen, very lately, Motability can and do now change their rules as and when they want, to simply to suit themselves and the Government, with apparently no regulatory body to answer to. They are now also clearly working in close partnership with a Government, which is supposed to be impartial and largely unatatched.

                                          Looking at the recent changes.. “From 16 December 2025, long lease extensions of up to two years will no longer be available. Only short-term extensions of around six months will be offered, and approval will be much stricter. Motability says this change reflects a return to normal vehicle supply levels and aims to keep the fleet newer and more efficient.” Barely 7 months have passed and it seems the rules are being changed again. These changes give the scheme user a false sense of security, that in 15 months, they may order a new vehicle, with an AP out of their financial comfort zone under a false promise, they will be offered the same in 3 years time, but there is no guarantee they will and they remain dependant on the whim of Motability at the time! Any changes on a whim, are to protect Motability and not the user. You have only got to look at the changes to the scheme surrounding the governments implementation of VAT and to a lesser extent IPT.

                                          Once the Motability Foundation were registered with the Charity Commission (OSCR in Scotland) and the Financial Conduct Authority and Motability Operations registered with the Financial Conduct Authority, they both seem petty much self-regulating.

                                          With MO being regulated by MF, who are a registered charity who are not open to seeking donations from the public or organizations  and which has assets of £2.9 Billion and are funded by MO donations (largely funded by us and car sales) and their Endowment Trust (MET) investments.

                                          They both seem to make internal policies and handle complaints internally between themselves, and now with a little help from Government interference and guidance.

                                          • This reply was modified 2 weeks, 1 day ago by Callmejohn.
                                          #376041
                                          Callmejohn
                                          Participant

                                            I think the other advantage to Motability by offering extensions, is that they have either jumped or have been pushed into making ill thought out changes to the Motability rules, which have not been at all well received, which has even resulted in the issue going to court and this gives them some more breathing space to re review their future policy.

                                            #376046
                                            kezo
                                            Participant

                                              I think the other advantage to Motability by offering extensions, is that they have either jumped or have been pushed into making ill thought out changes to the Motability rules, which have not been at all well received, which has even resulted in the issue going to court and this gives them some more breathing space to re review their future policy.

                                              Possible!

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