[jl151080]

My motability lease on my 69 plate Audi A1 S Line has been extended until December 2024, as I discussed with motability that I would probably go for another A1 but it didn’t make much financial sense at the current AP when  my current car serves my needs well and is reasonably low mileage (38,500 at present).

My PIP award is due for review in June 2024 so, as you can only order a new car when you have 12 months or more to go on your current award, I have to decide either to order a new car before the end of June, or wait until my PIP award is hopefully renewed in June next year.

Is there any benefit in choosing to order a new car now? (other than getting a new car sooner, of course!). My gut feeling is to stick with my current car until the PIP reassessment, but I’m just trying to consider all the options.

Topic

[Glos Guy]

That’s a difficult one. I’m not a fan of lease extensions, as you still have to pay the full PIP benefit which means that on a car like an A1 your total outlay over the total term would almost certainly be far greater than had you bought the car privately (net of the residual value which, of course, you don’t have with a Motability sourced car). If you are not in a position to buy privately then that becomes less of a consideration.

The economics of lease extensions slightly improve if you have paid a high AP and added a number of expensive options, as the ‘per month cost’ becomes less. As I understand it, if you lose your PIP entitlement then you lose the car a few months later, so I don’t think that should be a consideration for you. If you like your current car and you lose your PIP entitlement then you may wish to buy it, but keep in mind that you will get better for less on the second hand market, as Motability ask very high prices which you cannot negotiate on and you don’t have the reassurance of a warranty that you get elsewhere. .

If you don’t want (or can’t afford) to source a car privately (new or used) and Motability is your only route to a car, then it simply boils down to what is available and the cost of it, compared to what you have now, plus second guessing what will happen in the future. On that last point, none of us know. There has been a tiny recovery in the choice of cars during 2023 but it’s still poor and the most noticeable additions have been EVs at eye watering APs, the size of which would negate the running cost savings for many Motability customers.

I’m conscious that I’ve not really answered your question, but hopefully have given you some food for thought when weighing up your various options!

[jl151080]

Thanks @Glos Guy.

When I ordered my current A1 the advance payment was around £560 but I added over £3k of options, so as you say the economics of the extension are slightly better. Also, personally it doesn’t bother me that with the extension I’m still paying the full PIP benefit as it just means the agreement carries on as it has been, which is fine for me.

Because the cars I’m interested all have significantly increased AP’s compared to when I last ordered, that’s the tough decision for me, especially when factoring in the inevitable options packs on top of the AP.

If I keep my current car until the end of the lease, it’ll be 5 years old so worst case scenario, if I lose PIP, the most likely option would probably be that I would lease a slightly newer used car, depending on the cost implications.

[Glos Guy]

In which case I’d stick with your current A1 until your PIP is (hopefully) renewed and then see what the choice is like at that stage. If you are still in a quandary you can continue to stick with the A1 until the 5 years is up. You’d have to hope that choice will have improved by then, but……..

[jl151080]

Thanks. Wise words, I think.

I am hoping that the AP situation will get better in the coming 18 months – the A1 AP has fallen slightly, so is heading in the right direction, but I’ll have to wait and see.

[kezo]

Excellent advice as always from Glos Guy.

[Author]

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