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My current car runs out in April this year, we need a raised car (SUV Type) and a large boot for a wheelchair but don’t feel comfortable spending more than £3k AP – so not much choice currently.
In my naivety, could my idea below work to free up some choice through motability. I would love to know if/where I am wrong. Hear me out:
- No APs
- Voucher scheme for £25-27k towards a new car
- Only available through a list of approved manufacturers (to keep RSA happy)
- If car worth lest than voucher then you keep some of your motability allowance (PIP, DLA, etc)
- If car is worth more than voucher you pay the difference
- You pick the trim, engine, options etc.
- You can shop around dealerships for offers and healthy competition.
The voucher price I have just guessed. Obviously, this wouldn’t solve everything as the chip crisis affects this idea too. But surely this would free up the choice and a little bit and give motability customers more purchasing power. If motability steal my idea, then you know where it came from but at least it might give us more choice.
This could also work for WAVs potentially. Give me your thoughts.
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I would be happy if they brought the five year HP scheme back, even with today’s inflated second hand prices.
How would you replace the big discounts Motabiliy’s purchasing power achieves? Motability gets its cars VAT free. As an individual purchaser you can’t (unless the car requires substantial modifications). How would you finance the purchase if the price is very much over your voucher price? What happens to the car after three years? Who insures it?
Wigwam,
Apologies, I haven’t made myself clear. It would still be the same VAT free, insurance and the rest all through motability – just a different route to purchase. Again this would only solve things marginally – but I believe it would give us motability customers more choice.
<p style=”text-align: center;”></p>Ok, but then you would be unlikely to get the purchase discounts Motability gets and how would you finance the cost over the voucher price? The point of Motability is it makes cars available to people who may not be a good commercial credit risk.
Wigwan,
You would finance anything over just like how you would finance the AP. I don’t think motability actually broker the best deals hence why some lower trims are more expensive than the higher trims on certain models and why, for example, a £30k ford costs £1k AP and a £30k VW costs £4k AP!
I am open to the idea that I might be totally wrong and just barking up the wrong tree – this is just what I came up with as a potential problem solver.
Guessing your idea is that it’s will be on some sort of pcp deal and after 3/5 years you give back the car or pay the outstanding amount to buy it. Personally though imo it ain’t gonna work for many, or the big banks that run the scheme on behalf of the charity. Ideally the asset not being secured to them.
One may as well just sort out their own car using their allowance, if something was done regarding the vat and that’s the main point of me using the scheme all that is done for me with no hassle plus you get a new car to drive every 3 years..
I did say this a while back that the scheme was doomed and mainly that’s because the allowance is not keeping up with inflation and now low production output and demand above supply always increases prices.
Which imo has all been caused to generate the place the car industry is in now over where it was before. Covid has been used to stop production and limit sales, thus increasing sales / values of used cars that was just sitting around and no one was buying. Never mind the switch to ev’s and goverment policies effect on the market.
Many pcp deals don’t include insurance and maintenance, although it can be added for an extra fee. I have been looking at deals for my younger brother as his company said they’d fund him a car but the problem is the high mileage the scheme allows and he needs for his job, really bumps up the price.
In last 18 months since getting my latest car i’ve only done 8.5k so lower mileage might be ok for me now.
Personally when my lease ends, I won’t be extending it and won’t pay crazy inflated ap’s to lease another one. I’ll be going back to owning something and probally used over new.
Guess i’ll have to see then, but be getting something i can afford and going back to doing everything myself.
Personally all cars lower or higher ones i have issues getting in and out of, but once you in it, seated, to me that is what really matters. So my last 2 have been car’s, over suv’s or mpv’s. Which i’ve had before.
I do think we all need to lower our expectations of what we can get moving forward, especally for an affordable ap, 3k+ for me is not affordable, nor is it justifiable. nor do i feel it is Motabilites fault. It’s what the market has become.
Limits have been put on car makers in some form or another for years and now they face huge fines also if they do not comply. The only way they can avoid these fines now i feel, is to produce less cars, as producing any car create’s a footprint. They do not want us the ppl owning cars and slowly they doing everything they can to put that plan into action. The demise of the car, except for the elite few, who will beable to afford to do what ever they want but us, we cannot and will not be allowed to..
Don’t really help you with you date due soon to exchange or pick another car but for me, I considering other options now for when my time comes. I may see a good deal and may end early.
Nothing to stop you doing this now.
withdraw from the Motability scheme and use your monthly payment to lease your own car, pay your own insurance and servicing.
best of luck being able to achieve the same level of car and spec.
a voucher covering three years pip payments does not work, as you have to be able to sign in to that, with no loss of pip, you are expecting someone to pay that advanced sum, where is the benefit to the taxpayer?
Rox,
Thank you for your reply.
My solution is only ‘half baked’. It won’t be a voucher, it would be motability saying that for you full DLA/PIP a month it would afford you a vehicle to the value £Xk pounds; say £27k. You would still get the full service of motability and you wouldn’t own the car at the end – all of the same as what we get now.
The outstanding balance between the ‘voucher’ (that isn’t a voucher) and the listed value of the car (excluding VAT) would get paid to the dealership.
Like I said, everything would be the same just a different route to purchase.
If you really wanted a £50k car for 3 years you could.
Motability wouldn’t need to list out all the cars available they would just need to list the approved manufacturers. Then I would look at what models, trim levels, engines I could afford for my ‘voucher’ and see what extra to my ‘voucher’ I am willing to pay.
Motability would have to work out the value of the ‘voucher’ amount based on the discounts they broker. It would be much more transparent when looking around for a new car and dealers could fight over our custom for the extras thus making thing better for us. We would feel more like a ‘normal’ car customers and get treated better by dealerships (I know it can be hit and miss, some are good and some not so). You would not be prescribed as to which exact trim/engine levels you had to choose.
I’m no expert but maybe some thinking outside the box like this might improve the motability experience for everyone.
Nothing to stop you doing this now. withdraw from the Motability scheme and use your monthly payment to lease your own car, pay your own insurance and servicing. best of luck being able to achieve the same level of car and spec. a voucher covering three years pip payments does not work, as you have to be able to sign in to that, with no loss of pip, you are expecting someone to pay that advanced sum, where is the benefit to the taxpayer?
I don’t need to as my 3 year lease still has 16 months to run. I don’t see the situation getting any better overtime only worse. Which means Less and less choice will be on the scheme and if i see a good deal on a used car i may indeed buy it and leave the scheme. When it suits me, just like anyone could at anytime.
I will not extend my current lease past 3 years as your paying the same for a 3 year old car as you would be for a new one and only mbo benefit.
My current car the honda civic is no longer on the scheme either. My car before that was a golf the ap’s now are all over 3k on the golfs on the scheme. There is no way i will pay that much ap.
When the time comes i will look at other alternatives and options but i always look ahead so i can plan.
You are right other leases are more expensive as they include vat and the profits companies’ make from offering you the leases. Just like it costs you more to pay insurance monthly rather than yearly in one lump sum, but if a car is not on the scheme you cannot lease it.
Also on many private leases you can also reduce the ap to one month and spread that cost over the term you agree to. So for some who cannot afford a huge ap, That maybe an option for them. This is about giving options not all will work for everyone in the same way as the scheme will or doesn’t work for everyone.
Personally i think i may go back to owning a car not leasing one. let someone else pay for the huge depreciation from new and that way one could get what they want and need over something that is not suitable for there needs but is new and on the scheme.
Where did i say you could get a better deal leasing over the scheme. I didn’t i said there are other options and if your mileage is a lot lower than the 20k a year the scheme allows you. then there’s some reduction there on both pcp and insurance costs, Which mbo make more money on when you return the car with 40k less than they allotted for.
I am not anti scheme but i understand the reality of the situation of many, with the way things are now and will head in the future, less and less of the specs you want will be available. soon i can see only smaller cars being on the scheme at an affordable ap for those on a low budget and they not suitable for many, for many different reason’s.
The biggest problem is the gap between the allowance and the cost of cars keeps rising at different rates. So some may have to buy privately and maybe used rather than new to get what they need and is now not available on the scheme as it was in the past.
If you really wanted a £50k car for 3 years you could.
You used to be able to get cars at a much higher ap, but the media and those that think we get free cars put an end to that with all the bad press Mb introduced a cap. So i highly doubt they will agree to it now.
Something does need to happen though and the solution you mention is not a bad one only it could be open to abuse, from those with rich pockets or there friends. Who could afford to buy the car after 3 years as who would shell out 23k ap upfront on a 3 year lease and hand it back after the 3 years on a car priced at 50k like some higher range new ev’s are.
The ap’s paid by us to get the car we want basically makes mbo more money at the end of the lease and is why they have a huge pot currently sitting there.. There’s nothing wrong with the more comfortable off being on the scheme at all, as it’s down to disability, But on the same hand should mbo be the only ones who can benefit long term from being on the scheme.
I know that i cannot justify paying huge ap’s towards a car that is dead money to me at the end of the day and with current ap’s of over 3k for a golf right now as a comparison. where i paid £249 in 2017 that’s at least 12 times as much ap.. which is not sustainable at least not for me..
There is no way at that ap a golf is viable for me on the scheme. even if the gcb is now £600 and you get an extra £250 thats £850 it’s still over 2k ap on the basic golf not even higher spec ones and £3749 for the life auto estate which is less than the auto hatchback at £3999. Infact you can get the Tiguan allspace cheaper. sad state of affairs imo.
I just hope motability read this and consider other options or a whole different strategy to ensuring their users get a product to fulfil their needs for a reasonable price. I mean if they really cannot cut the APs then could they allow to be able pay the AP over time even like £100 a month for the length of the contract via direct debit.
Even if they did this just for EVs as a push to be greener and so offer more EV models.
I’m sure there is somebody who works at motability who could have all the answers for all our major queries and suggestions and I hope they understand our struggles.
I am grateful of the scheme.
The Tiguan Allspace would be ideal for us – but my wife would shout at me for spending £3700 on a none hybrid car! I hope they bring the Skoda Kodiaq or Kia Sorento on to the scheme.
One would hope so, but i highly doubt they do. They have around 600k customers and deffo there’s not that many on this forum. My wife also would make my life not worth living if i spent 3k+ ap on any car.
My current car the honda civic sport was the most I’ve paid so far, really do like it, but that was a one off as a treat and kinda for my late son, he used to help me as he loved looking at cars and the specs and he mentioned it when it came out not long after i got the golf in 2017. In the august he passed away be 5 years this year.
In the two quarters since i did the test drive in it before i could actually order it, it went up £600 in ap. I managed to get £200 off from dealer and with the gcb i got back all in all think it cost me around £800.
I’m grateful of the scheme also but with current aps what can one do. You could extend your lease if they allow it and wait and see what comes on and at what price and give you more time to decide what to do.. if it’s still suitable for you that is..
Easiest solution would be, 3,4 or 5 year leases. Motability already offer extensions and WAVs are available on 5 year leases. It would then only be affected by the time remaining on your DLA/PIP claim,
Despite the AP rises and having less choice due to manufacturers removing vehicles from the scheme I still think it is better than owning a second hand car or leasing privately.
Vehicles can still be had for what I would consider ‘reasonable’ AP, I understand that the choice is limited at the moment compared to what was previously avialable and as a result ones preffered choice of vehicle / manufacturer may be now no longer on the scheme or the AP is to expensive, as result one may need to look at alternatives or extend the lease in the hope that things may return to normal in the coming months.
Hire out ex motability cars at a cheaper AP, and monthly payment us customers already on the scheme..
Lets use what we already have, cars are going back early, some have seen out the previous lease with hardly a dent in the miles in excellent condition..
Do I need the most newest model, with upgraded headlights.. uurrrmm nope, transport will do, with the advantages of the scheme..
However we’re all different, that’s just my view..
Saying that they wouldn’t be EX motability cars would they, just adopted from to another..
Despite the AP rises and having less choice due to manufacturers removing vehicles from the scheme I still think it is better than owning a second hand car or leasing privately. Vehicles can still be had for what I would consider ‘reasonable’ AP, I understand that the choice is limited at the moment compared to what was previously avialable and as a result ones preffered choice of vehicle / manufacturer may be now no longer on the scheme or the AP is to expensive, as result one may need to look at alternatives or extend the lease in the hope that things may return to normal in the coming months.
The big thing with leasing privately is even though it is more expensive the Motability, you can have any car you want (providing you can afford it of course).
The big thing with leasing privately is even though it is more expensive the Motability, you can have any car you want (providing you can afford it of course).
However lease schemes tend to have a fairly high initial payments as well, you have then got to factor in insurance, tax(depending on vehicle) as well as the mileage limititations and thats before factoring in any adaptions needed or if indeed the lease company will allow them to be fitted.
Of course for many MB users it could make perfect sense to lease privately at the moment, for us with all the adaptions we require leasing from MB is still the better option.
You pay your monies and takes your choice I suppose.
The big thing with leasing privately is even though it is more expensive the Motability, you can have any car you want (providing you can afford it of course). However lease schemes tend to have a fairly high initial payments as well, you have then got to factor in insurance, tax(depending on vehicle) as well as the mileage limititations and thats before factoring in any adaptions needed or if indeed the lease company will allow them to be fitted. Of course for many MB users it could make perfect sense to lease privately at the moment, for us with all the adaptions we require leasing from MB is still the better option. You pay your monies and takes your choice I suppose.
Same here volkwin, I too are a slave to MB with the adaptions I need to drive and more so having the ability to call someone should something not be working right as I’m sure the RAC or any other breakdown service would not have a clue about adaptions though I add mine over 13 years have been quite reliable other than battery changes but then they get renewed every 3 years.
The other sticking point for myself is having to lend £30K at my time in age as its too much of a risk of myself making an earlier exit from this planet than expect and leaving my family with a large debt and an almost worthless car or a car worth a lot more less than the remaining debt on the loan.
MB is so much more than car leasing for some of us, its more of a peace of mind or a life insurance if you like. ?
The big thing with leasing privately is even though it is more expensive the Motability, you can have any car you want (providing you can afford it of course). However lease schemes tend to have a fairly high initial payments as well, you have then got to factor in insurance, tax(depending on vehicle) as well as the mileage limititations and thats before factoring in any adaptions needed or if indeed the lease company will allow them to be fitted. Of course for many MB users it could make perfect sense to lease privately at the moment, for us with all the adaptions we require leasing from MB is still the better option. You pay your monies and takes your choice I suppose.
I think you’ll find the AP’s for private leasing companies are on the whole lower than those being asked for on the scheme. Of course the monthly cost is higher but it is surprising how close the figures are if you are a low mileage motorist. Insurance is dependant on age and location, but the quotes I’ve had recently have been quite low. Tax doesn’t apply to us as being disabled makes us exempt. A big plus point for some is the fact that there are private leasing companies with vehicles in stock. I’m lucky in that I still have just under 2 years left until my 3 years are up, but for some people who are coming up to their 5 year deadline going private may be their only option as things stand.
I think you’ll find the AP’s for private leasing companies are on the whole lower than those being asked for on the scheme. Of course the monthly cost is higher but it is surprising how close the figures are if you are a low mileage motorist. Insurance is dependant on age and location, but the quotes I’ve had recently have been quite low. Tax doesn’t apply to us as being disabled makes us exempt. A big plus point for some is the fact that there are private leasing companies with vehicles in stock. I’m lucky in that I still have just under 2 years left until my 3 years are up, but for some people who are coming up to their 5 year deadline going private may be their only option as things stand.
Hi Elliot yeah forgot you can forgo the tax on a private vehicle.
I suppose it depends on your situation, mileage you do a year, how much you can get insurance for and how much importance you put on the maintenance/ care package.
I suppose its also important on what you want out of a vehicle, for us its simply viewed as a tool that needs to have certian atributes in order to give my wife the mobility she needs to get on with her life as well as getting her to work etc, as such the make and model are not important to us as they may be to others.
I suppose if you must have a vehicle that is no longer on the scheme then your options are extend the lease if possible, or buy/lease private.
Leasing be through carwow or manufacturer PCP scheme cannot give us the same peace of mind that leasing through MB can, especially as my wife can only drive vehicles with specific adaptions, at least with MB if the vehicle is immobilisied for some reason MB will supply an adapted replacement vehicle for her to use.
All the like for like leasing schemes and manufacturers PCP schemed I looked at (the vehicles on our shortlist) worked out as being far more expensive over the 36 term (does noy include the price the adaptions) than the same vehicle on mobility, no doubt for MB users with different needs may be able to lease cheaper than with MB.
Each to their own for us the scheme still represents thebest option.
Very few, if any, private leases offer the same degree of flexibility as motability, I terms of mileage, maintenance, service, the condition of the car on return and especially the ability to change cars in the event of a change in circumstances. For someone with a good driving record living in a low risk postcode and covering less than 6-8000 miles a year there are some good options, but for many this does not apply, coupled with the need to pass a credit assessment.
Very few, if any, private leases offer the same degree of flexibility as motability, I terms of mileage, maintenance, service, the condition of the car on return and especially the ability to change cars in the event of a change in circumstances. For someone with a good driving record living in a low risk postcode and covering less than 6-8000 miles a year there are some good options, but for many this does not apply, coupled with the need to pass a credit assessment.
This is where I disagree. My last privately leased car was a BMW 4 series, a car that has never featured on Motability. I negotiated a deal with the leasing company for 30,000 miles per year on a 3 year lease for what they were quoting for 20,000 miles a year. I got insurance for just over £400 per year and took out a fully inclusive maintenance package at reasonable cost. I looked after the car but just before the end of the lease took it down to my local body shop who gave it the once over and touched up any small scratches for less than £100. At the end of the lease I returned the car and that was the end of the matter, no additional costs incurred.
At the time there was nothing on Motability that I fancied. Luckily for me the BMW 3 series came on the scheme just as my lease was about to end so I went for that and don’t regret it. However if I had to choose today, I would definitely got back to leasing privately.
My son does less than 5k miles a year. He leases his car privately and like me he looks after them. Again there was nothing on the scheme that he fancied being under 25. If there had been he would have gone down the Motability route.
Private leasing isn’t for everyone but neither is Motability.
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