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We all know that the AP’s bear little or no relationship to reality and the value of the car, aside from expecting the AP to be higher for more expensive cars.
But Motability don’t seem to push any particular car or car manufacturer or am I mistaken? For example, take the Vauxhall Astra. You might have thought that Vauxhall would very much like to overtly promote the Astra and have it front and centre with Motability. But you never see this. No special offers, no discounts and no affiliation between the two organisations.
This surprises me, I would have thought Motability would be able to ‘sell’ promotional slots and get discounts for us, the customer. Have a weekly bonus buy, or a monthly mega sale, or similar. I have never seen this, and I am a little surprised.
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I think (although guess might be more appropriate) that the reasoning would be that they try to get the best possible price for all customers at all times rather than leave a £500 extra on the AP so it can be cut for an offer for a month of the year.
Some dealerships use their end of month/quarter bonus to prop up the discounted prices they offer on limited number of cars. Still no movement on the deal with Motability.
I would also add that the effort in finding/creating significant deals for 1 week would be an expensive process for Motability, especially when you take into account that there would need to be website changes for these offers (and we’ve all seen how well they can go) plus communication with dealerships.
If a manufacturer can cut £500 off their price so that Motability can pass that to us, I’m pretty sure they’d insist on it being a permanent change. That said, I’m sure that one manufacturer could give a (say) Christmas present for all Motability customers ordering between the 20th and 30th December where they pay the first £250 or whatever of your AP. I just don’t think that they can expect a return in numbers of units sold over their usual £1,000 towards your deposit type offers for lease/pcp purchases, keeping in mind that they get a payment for finance contracts each month.
It would be nice to see the occasional promotion, even if that was part funded from profits, but I’d expect there would need to be a reason. So £250 off all electric cars over the period of an environment week or some similar idea but that wouldn’t work for a select manufacturer as the others might get the hump.
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
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We all know that the AP’s bear little or no relationship to reality and the value of the car, aside from expecting the AP to be higher for more expensive cars. But Motability don’t seem to push any particular car or car manufacturer or am I mistaken? For example, take the Vauxhall Astra. You might have thought that Vauxhall would very much like to overtly promote the Astra and have it front and centre with Motability. But you never see this. No special offers, no discounts and no affiliation between the two organisations. This surprises me, I would have thought Motability would be able to ‘sell’ promotional slots and get discounts for us, the customer. Have a weekly bonus buy, or a monthly mega sale, or similar. I have never seen this, and I am a little surprised.
Why would Motability Operations want to?
With a captive customer base, they want to extract the maximum profit out of every new lease– both in their quarterly negotiations with manufacturers and in setting Advance Payments/lease to customers.
With their fairly static customer numbers (which to be honest have hardly moved in years – they lose a few/gain a few), discounting one manufacturer over another is a bit like robbing Peter to pay Paul (ie one less sale for the other manufacturer, one more discounted sale on which they would make less profit as it is discounted).
Add in that Motability Operations quarterly pricing is seemingly a lottery anyway, so trying to manage that with monthly offers would become very difficult. Not to say also pee off the customers who cannot order ‘x’ vehicle whilst the ‘monthly mega sale’ is on but could have a few days before/afterwards.
Where Motability seem to be currently in the pound seats, is for electric vehicles that are not selling in any volume to the general public. Hence manufacturers are off loading them to the scheme (and other fleet channels) to maintain quotas. There has been some big advance payment drops quarter to quarter on these, particularly scheme top-endish EV’s.
Overall, Motability Operations know their customer base is finite (based on relevant allowances being awarded by third parties). Thus, as a business, with overheads to pay, maximise the profit on that customer base, hence no need for monthly offers or discounts.
I’m inclined to agree with @MFillingham and @BigDave. It would potentially cause more problems and if an AP can be lowered that should be permanent. Also, we often read of people who have rushed into getting what turns out to be a poor choice for them due to what is perceived to be a good deal at the time.
With regards to AV payments do find the most attractive deals (£ per buck) are on the more expensive models with still payments reasonable. A lottery though finding them when you are in a position to order. Personally had to extend 2yrs as saw nothing I wanted at 3yr term end.
Understand many do not have the affordability of considering cars with higher AV’s. Would be welcome to see Mobility reduce them seeing the massive profits they generate from this business model on us.
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Granted.
I was basing it on their own quoted 650,000 figure in the most recent Motability Operations Annual Report (Dec 2022 – Page 5):
https://annualreport22.motabilityoperations.co.uk/documents/Motability_Operations_2022_ARA.pdf
If they have increased by over 50,000 net customers in the roughly 18 month period since the report tally would be finalised (pre-report being published), that is actually quite some growth.
You are both correct.
What the numbers mean is there are 620,000 active Motability customers and that the 700,000 are the total number of customers who have used the scheme.
The difference of 80,000 are the people that have left the scheme or have died since Motability Operations started.
A better descriptor is that 700,000 customers have used the scheme.
@bigdave Motability have increased their customer base from 620 000 in 2019 to over 700 000 today.
Granted. I was basing it on their own quoted 650,000 figure in the most recent Motability Operations Annual Report (Dec 2022 – Page 5): https://annualreport22.motabilityoperations.co.uk/documents/Motability_Operations_2022_ARA.pdf If they have increased by over 50,000 net customers in the roughly 18 month period since the report tally would be finalised (pre-report being published), that is actually quite some growth.
According to MO’s half year report March 31 2023, the scheme had gained an additional 20,ooo customers (670,000). Apparently, during the following 6 months, the scheme amassed a further 30,000 customers, with Niki making up the 700,000.
The increase’s to the number of people using the scheme (if correct) is, in part surely down to the cost of living crisis.
I’m also inclined to agree with @MFillingham and your initial posts.
If my sums are right Motability collect £7,553,200,000 for 700,000 customers over the 3 year term.
Wow.
I believe that there are 1.8m people in receipt of higher rate mobility PIP. So with 700,000 customers that still leaves 1.1m who prefer to use their allowance for other things, or fund a car privately. As the average age of cars on our roads is now 9 years, a lot of people don’t consider a brand new car to be high on their list of priorities.
I believe that there are 1.8m people in receipt of higher rate mobility PIP. So with 700,000 customers that still leaves 1.1m who prefer to use their allowance for other things, or fund a car privately. As the average age of cars on our roads is now 9 years, a lot of people don’t consider a brand new car to be high on their list of priorities.
For those in inner cities, the public transport system is perfectly adequate, as long as you can access a bus/train. Then there are those who can not afford to lose the PIP money as they currently survive without a car and will continue to do so whilst enjoying the bit of heat that extra money can afford them.
I guess there’s a few who will have a job with a car and there will be a good few who are eligible for the higher payment but live in care facilities and have no need of their own vehicle.
If anyone can put a number on those categories, that’ll reduce the 1.8m but will likely remain above the 700,000.
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
48% of people who qualify for the Scheme are unaware of its existence.
I’ve heard a similar statistic but struggle to believe it. When my wife first became eligible for the higher rate mobility element, the letter confirming it included a leaflet saying that she was also eligible to join the Motability scheme. This came as a complete surprise to us as it was not on our radar at all when filling in the forms.
There will no doubt be countless reasons why only around one third of those eligible actually join the scheme, but I maintain that the biggest single reason is most likely that when the average car our roads is 9 years old, sacrificing a minimum of £18k over 3 years to have a new one would seem a luxury that most would not, or could not, entertain.
I’ve heard a similar statistic but struggle to believe it. When my wife first became eligible for the higher rate mobility element, the letter confirming it included a leaflet saying that she was also eligible to join the Motability scheme. This came as a complete surprise to us as it was not on our radar at all when filling in the forms. There will no doubt be countless reasons why only around one third of those eligible actually join the scheme, but I maintain that the biggest single reason is most likely that when the average car our roads is 9 years old, sacrificing a minimum of £18k over 3 years to have a new one would seem a luxury that most would not, or could not, entertain.
Agreed on both parts.
There is also the fact, that a certain amount, will opt to use a taxi or have food delivered etc, and have no real use for a car, due to individidual circumstances.
I also wonder if the cost of living, has had an influence on the increase in numbers using the scheme and whether this will fall at a later date.
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