Motability Vs leasing

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  • #37498 Reply
    Markymate

    In a moment of boredom I thought I’d compare the price of my ordered vehicle, a Kodiaq SE L 7 seat, 1.4 TSi ACT 150 PS DSG.

    Allowing for the 60,000 mileage set by Motability, I’ve selected an average leasing payment, using several of the major leasing companies,  including a maintenance package, none of which cover accidental damage, tyre or windscreen replacement.

    With deposit, admin fee, and monthly instalments the total comes to, £19,348.32. Or £537.45 per month. This price does not include insurance, tax, breakdown cover, home and Europe, and the peace of mind of just picking up the phone when the vehicle plays up.

    Compare this to the Motability contract I’ll be taking up once the car is delivered, which is, £2995+300 for leather seats AP, and £232 per month of my PIP allowance, comes to £11,647, Or £323.53 per month.

    £323.53 per month, or £537.45, plus tax, insurance, breakdown cover and much more.  For me, I’m just glad the Motability scheme exists, even with all it’s perceived faults and caps.

     

Viewing 25 replies - 1 through 25 (of 35 total)
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  • #37501 Reply
    Dave

    Good comparison Markymate however now do that comparison on either a Skoda Citigo or a Up etc etc and lots of other small cars and it’s more beneficial to private lease than use Motability

    then it gets even worse for the people that use Motability to lease a mobility scooter as it costs them dearly and would imagine this is where are lost of there profit is made.

    The one thing in Motabilitys favour is that there is NO credit checks /scores to worry about.

    well done Motability for increasing the choice,but don’t stop there.

    Now we will all have to wait for the Daily Mail backlash .

     

    Happy New year to all. 🙂 🙂

    #37511 Reply
    Markymate

    Good points Dave. I was speaking from my prospective, but will take a look and post later.

    Unfortunately can’t do much about the Daily Mail!!

     

    Happy New Year.

    #37516 Reply
    Fred Colon

    Don’t forget tyres.

    Even if you don’t wear them out punctures happen.

     

    As for the cheaper car it can work out expensive, relative to pcp.  But as you say there are no credit check so those with poor credit or not working are not penalised at all. Or more likely the rates and cost would be higher (to old adage the more you need credit the more it costs you)  But I’d  say the benefit is more intangible,  he car will always be taxed, insured, services and any issues are a pleasant phonecall away.

     

    The other side is mobility cars are so very often  for people who cannot look after themselves  and wouldn’t be able too or couldn’t manage to get it done themselves or those getting pip between 16-18.

     

     

    #37520 Reply
    moggy
    Participant

    but it’s not £232 a month, it’s over £252 a month.

    #37521 Reply
    Glos Guy

    I agree that the ‘peace of mind’ aspect of having a Motabilty car is worth a lot, but it comes at a cost. My wife is coming towards the end of a lease on a Motabilty supplied Tiguan Match 2.0TDi 140PS 4motion DSG Auto, which at the time was fairly top end of what you could get, SUV wise (retail price, with options, £31k). With sacrificed DLA / PIP, Advanced Payment and additional options, it will have us cost around £14k over the 3 years. We hand it back with nothing to show for it.

    At around the same time, I bought myself a brand new BMW 520d Luxury Auto which, fully loaded with options was £41k retail. I managed to negotiate £10k discount (yes, £10k – and that was from a main BMW dealer) by taking out a PCP (BMW discount + BMW finance discount + dealer discount). I paid off the PCP in full a few months later, saving myself several thousand pounds in potential interest charges. Perfectly legit, they just don’t publicise it for obvious reasons, because legally they cannot reclaim the discounts they have offered you. I have done the same previously with VW on a Tiguan R-Line. I now own the car outright and am not tied to mileage restrictions etc. I bought a 5 year servicing plan (within the price quoted), so don’t pay for services. Insurance costs me less than £300 a year (fully comp, protected full NCD) and road tax £30. I have changed one tyre. Based on the value of the car today, the combined depreciation and running costs (including an allowance for 3 more tyres) have totalled around £12k. £2k less than the Tiguan for a car that costs £10k more. And I own it outright and can keep it for as long as I like or sell it and recover the remaining cash.

    I fully appreciate that not everyone has the ability to find sums of money like that and many would not wish to even contemplate it, even if they could, but I am just highlighting that going the Motability route isn’t always the best option financially, even at the top end of the scheme, and you can sometimes get a far better car privately for less money.

    Ironically, even though I have first hand experience of this (several times) my wife will almost certainly go the Motability route again as she is less of a risk taker, doesn’t want the ‘worry’ of owning it etc etc. All of which, keeps thousands and thousands of customers with them.

    #37531 Reply
    Winston

    Very interesting read there Glos Guy, and well done for saving so much on the deal! I’m all for people saving as much money as the can! Good to hear ?

    #37532 Reply
    Fred Colon

    As much as I don’t like not owning the car outright I know I wouldn’t be able to afford  a decent and useful spec car any other way.

    PCP gives you the option of buying  outright or renewing  (which is what most people do I belive) one requires a lump sum or finance again or. Omitting yourself to a car you don’t own.

    I could get a decent secondhand car for maybe 8k that would be reliable  for a few years before it hit the 7-10 year mark and become intensive to maintain while being worthless, moreso given my milage as  i am stranded without a car.

     

    The thing is how much would a 30k car be worth in 9 years time?  Just checked for a 9 year old  version of my current. 4.5k  For me longer term it more than evens out.

    #37545 Reply
    Glos Guy

    I think you highlight just some of the reasons why Motability is so popular Fred. Although you never own the car, some may see that as a positive, as a lot of people don’t want to be responsible for an ‘asset’ of that value and others are not confident or comfortable enough to haggle for the best deals with dealers.

    You are quite right that most people taking a PCP don’t do as I did and pay off the car. They hand it back after 3 years (just like a Motability car) the difference being that the dealer then gives you the additional value of the car above the agreed final value (usually quite a few thousand pounds) as a discount off your next one. It’s usually quite a large amount as that’s how PCP’s are structured – to encourage repeat purchases.  I suppose that I should have said that if I hadn’t paid it off after a few month and just carried on paying the monthly PCP cost, I could have handed the car back after 3 years and not had to find a chunk of cash (other than the deposit). That way, the total cost of ownership (allowing for interest) would have been identical to my wife’s Motability Tiguan, rather than £2k less BUT I have still had a far better car (£10k more) for the same money.

    However, as I said before, I fully appreciate that not everyone is able to find big chunks of cash, we live in a low risk area for insurance and I don’t have any issues with things like credit ratings. My wife (who is the Motability customer) has to have a car with hand controls and it doesn’t feel quite so traumatic having those fitted in a car that you don’t own. That said, if we did go the private route and had to pay for the hand controls ourselves, we would get an even better deal as the new car purchase / PCP would be VAT free due to the need for the hand controls. At times, I wish that I didn’t understand how all of this works, as it would be so much easier to just order a Motability car without weighing up all the alternatives!

    #37546 Reply
    Dave

    Sorry Glos Guy,but you won’t get the car vat free only on the adaptions . 🙂

    #37548 Reply
    Joe London

    Excellent post, glos, as you outline, if going down the pcp route, you look for the best deals, that pop up for a short time, as dealers and manufacturers shift cars chasing bonuses, and there have been some excellent offers out there on premium brands.

    #37549 Reply
    Trev

    To add to the comparison, my wife and I are on benefits and we have a poor credit rating mainly due to the credit commitments we had prior to the sudden disability that was acquired and no longer able to work.

    Prior to claiming dla/pip, we have purchased a 14 years old rover 45 for £600 which in the 18 months we had her cost us a number of small things, i,e tyres and brakes. When mot time came round the stress and worry was unbelievable. With such an old car, a car rescue package with the aa/rac came it a high cost, plus then you had the car insurance to factor in.

    Our dla/pip payments were swallowed in to our shopping budget and was never seen as something that we could do more with, so when the time came for mot and repairs, money was extremely tight and sacrifices had to be made. I would be panicking about the cars reliability when it came to the day before a hospital trip as we lived a good 45 mins drive away from the hospital, or if it was the specialist one it was over 1 1/2 drive away. Alas the car never let us down, but the worry was taking its toll.

    So we decided to join motability with a zero ap vehicle and our quality of life improved immensely, no more worries about if the car would break down, no more worries about finances when the mot was due, and we were able to budget better paying off debts as could keep to repayment terms with no surprises expenditure on the car needed.

    Motability has given us a reliable vehicle, taken away stress, and given us some stability on transport needs – the most we’ve paid upfront is £195, with our current vehicle having no AP and not even taking our full pip award.

    This is why mobility works for us, and why leasing is not an option due to the credit criteria, upfront fees and payments required, and that leasing isn’t the whole package.

     

    #37552 Reply
    Dave

    Great post Trev and again just proves that Motability offers a great service for some,but not everyone. 🙂

    #37553 Reply
    Dave

    Just to add Trev you are not the only ones as in your first paragraph. 🙂

    #37556 Reply
    Nikky

    So I’m happy with mobility.i only passed my test last March. I was  able to go on Insurance with a provisional and after passing I was able to be named as 2nd driver if I would have had to pay my insurance it would have been a lot.

    #37557 Reply
    Glos Guy

    Not so Dave. Not that it makes any difference to my example (as the private car was for me, so wasn’t VAT exempt and my figures include VAT) but my wife has to have a push-pull fitted hand control lever. As it is drilled in to the car and cant just be taken on and off at will (unlike, say, a steering ball) it constitutes a permanent and substantial adaptation, which renders the WHOLE car VAT exempt. The wording in HMRC documentation is deliberately vague as they have been clamping down on abuse, but I have been in dialogue with them and given them the full details of my wifes disability (wheelchair user etc) and the equipment and they have confirmed to me that she would be entitled to FULL VAT exemption on the entire purchase cost, whether outright purchase or via PCP. In spite of all of this, she still prefers the Motability route, which is the point I am making that even though it doesn’t always stack up financially (especially given the restrictions), many people still prefer the hassle free element of Motability, which I fully respect.

    #37558 Reply
    Glos Guy

    As I have said Trev, the route that I went down wouldn’t suit everyone and, given your circumstances, you clearly made a very wise choice to use Motability. That’s the great thing about the scheme, it does offer worry free motoring for those who would otherwise be forced to drive much older cars with all the associated worry and hassle that goes with it. As I have also said, even though my wife has a crippling disability, we are fortunate that our financial position (due to my career) enables us to make choices which many, for the exact examples you quote and many others, are unable to do so.

    #37560 Reply
    Markymate

    Thank you Moggy for correcting my mistake. My payments should read, £342.86 pm, not the stated £323.53.

    #37562 Reply
    Markymate

    Done as suggested Dave.  Used the Skoda Citigo 1.0 MPI green tech SE 3, the lowest spec.  This price is without a maintenance package.

    Private leasing works out like this.  £2070.16 deposit, £172.56 pm X 36= £6,212.16, plus admin fee £198. Total cost over 3 years set at 60,000 miles is, £8,480.88.

    Through Motability, the same vehicle is, £240.50 pm, X 36= £8,658.   £178.12 more than the leasing price, which does not include servicing, insurance, breakdown, tyres, windscreen cover, and of course, peace of mind. I haven’t added road tax, as it’s not applicable.

    #37568 Reply
    Joe London

    Trev, my concern with your circumstances on motobility, would be, if you lost the component at a pip reassessment, you would have no wheels at all, if you used the 9k allowance on a pre owed car, say up to 5k, you would have change for repairs. Tyres are cheap at black circles, and a service and mot, done locally by an independent garage. The older cars in the family, including an alfa mito, have needed very little expense due to low milage, a battery, tyres over 10 years for example.

    #37574 Reply
    JS
    Moderator

    It’s a shame motability doesn’t tweak things a little. As a low milage user at the end of the 3 year term I’m offered that vehicle for a further 2 years at full allowance as are many others. Now apart from the cost of AP on choosing another vehicle there really is no incentive and I’m sure most chose to opt for new vehicle. The returned vehicles then go on a system for sale to trade users, only if unsold then go on to auction. So it’s financially viable for the extended lease or they would not offer it.

    i would suggest and like to see things tweaked slightly that mine and all other qualifying cars are offered to ALL for a 2 year lease at zero AP, allowing those that don’t have the finances the opportunity to have a higher spec vehicle that may suit there needs better than the less basic zero AP new vehicles. This I’m sure would introduce more Automatics and options that suit needs to many.

    i would be happier knowing as a group someone else has could benefited from my initial outlay for AP and any extras, rather than a trader.

    #37576 Reply
    Glos Guy

    What a brilliant idea. I guess the problem for Motability would be that it would result in less new vehicle orders, which results in less bargaining power etc. However, as their priority should be the needs of their customers, it should be considered.

    #37599 Reply
    Dave

    I did not know that and your right they are vague in regards to vat,at least some are beating the VAT man. 🙂

    #41476 Reply
    lightbodyae55
    Participant

    Hi Everyone

    I have noticed in the past on internet forums and other media, that some Motability customers feel that they are better off using privately sourced vehicles, rather than being tied to Motability’s terms and conditions, and they feel that they would be better off getting the full benefit their entitled to, rather than letting Motability have some of it.

    I was chatting to the Motability salesman (Alan Cooper) at Specialist Cars Skoda Aberdeen, in November last year when our Skoda was in for it’s first service. We were discussing leasing with Motability as against private/personal leasing. As Alan pointed out, there are 4 benefits that you get with Motability that in most cases you do not get with personal leasing.

    These are: (1) Fully comprehensive insurance. (2) Road fund license paid for for 3 years. (3) Breakdown and recovery, as well as courtesy car if yours is off road due to breakdown, (4) Servicing and Maintenance, including tyre’s.

    Now I did try a little example on internet of how much a 3 year personal lease would be on Skoda Octavia 1.6 TDI DSG Estate, (which is the vehicle I drive at present), and I could not find any company that would do it for the price that my wife pays from her enhanced PIP. Even if I could have done the companies want another £100.00 approx per month on top for a Maintenance contract. I would still have to pay for insurance, Road Fund license for 3 years, RAC or AA cover for 3 years. All these extras on top for a personal lease.

    I do wonder why some members think that the grass is greener on the other side.

    What do you guys think of the scheme as it stands? We all know that the AP on certain vehicles is questionable, but then, so can the upfront payment on a personal lease.

    I know that there is provision for disabled to get the Road Fund license free of charge, however there are terms and conditions and not everyone is aware of it, so I did not take this into account during the example above.

    lightbodyae55

    #41478 Reply
    JS
    Moderator

    Lightbodyae55 I have merged your post with this one, as same subjects with good input

    #41479 Reply
    lightbodyae55
    Participant

    Hi Justsaying

    Thanks for that I didn’t check to see if there were any threads on this, how remiss of me!

     

    lightbodyae55

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