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I’m confused (not difficult) with the 1st July APs. Please hear me out and I’ll try to explain why!
IIRC the government imposed 3 changes. Removal of premium brands, addition of Insurance Premium Tax (IPT) and the addition of VAT to APs. IPT probably only adds around £50 per lease. The removal of premium brands will increase costs, as they retain a better percentage of their value, and residual values are a major contributor to APs, but it’s impossible to quantify the overall impact (probably small on average). Finally, we all understand what 20% VAT means and that’s obviously the biggie.
However, in response to the government changes, Motability said that rather than applying the totality of these government imposed changes to APs, they were introducing several other measures. These included reduced mileage allowances, a massive hike to excess mileage charges, removal of overseas cover, less tyres per lease etc. All of these things combined should have lessened the impact of the 20% VAT on APs.
As we decided last year that we were leaving Motability I’ve not been paying attention to APs, but an example given earlier (Skoda Enyaq) showed that the full 20% VAT hit had happened to the AP, so what happened to the cost savings already in place to help offset some of this increase?
I know that APs change most quarters, so it’s difficult to take a read on this, but I’m curious to see other examples if anyone knows what the AP was yesterday and what it is today. Also, if the AP went up, did it go up by exactly 20% (e.g. £3,995 + 20% = £4,794) or has it been rounded up? With 900,000 customers, even a rounding up of just £1 on average nets Motability an extra £300k every year!
I’ve been following all the posts through the day, but am struggling to establish an overall picture. What are people’s views? Leaving aside the usual ups and downs, is there a sense that Motability has done as they said (I.e. offsetting some of the hit to APs through the measures already announced) or, like the Enyaq, have those that we can measure generally gone up by 20%? I just have a hunch that there’s a bit of smoke and mirrors going on here!
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When you look at Vauxhalls pricing, the 1,2l Astra £4500 and the Astra Electric (150bhp) £7850. Q2 the Astra started the Enyak is a bloody good deal, if you want electric of course.
There absolutely doesn’t seem to be any rhyme nor reason in these AP’s. I’ve been tracking 5 vehicles (all versions) from Q2 into Q3 and no obvious mathematical formulas are apparent.
Ford Kuga
Q2-Q3
1495-1495
1595-1495
2995-3195
6995-7995
1895-1895
1895-1895
2295-2295
2295-2295
3845-4095
2695-2695
3995-4245
2995-2995
3995-4245
PHEV up to 8395 from I think 7995?
VOLVO XC40
2499-1799
2999-2299
2999-2299
3499-2799
Yes. Down 700 in Q3
VW TIGUAN
3299-3499
3799-3999
5999-6249
4599-4799
4799-4799
6999-7499
6699-7999
TOYOTA C-HR
1195-1195
2345-2195
2995-3295
4245-4795
NISSAN XTRAIL
3499-3999
3999-4499
2499-2999
2999-3499
@comfortablynumb2 I am extremely grateful to you. As you say there is no pattern to those figures. In fact, it looks like any other quarter, with some going up, some going down and others staying the same.
I think they are all ICE cars or PHEVs? Did I read somewhere that EVs seem to have experienced the biggest increases?
I still find it weird that all those APs end in 9 or 5. Based on that, all the pre VAT prices would have been very odd, such as a £2,995 car in Q3 is £2,495.83 before VAT is added and, as we know, there were never prices like that in Q2.
Anyhow, I should perhaps ditch my curiosity as none of this affects me and nobody else seems bothered that things aren’t really adding up 😂
@comfortablynumb2 I am extremely grateful to you. As you say there is no pattern to those figures. In fact, it looks like any other quarter, with some going up, some going down and others staying the same. I think they are all ICE cars or PHEVs? Did I read somewhere that EVs seem to have experienced the biggest increases? I still find it weird that all those APs end in 9 or 5. Based on that, all the pre VAT prices would have been very odd, such as a £2,995 car in Q3 is £2,495.83 before VAT is added and, as we know, there were never prices like that in Q2. Anyhow, I should perhaps ditch my curiosity as none of this affects me and nobody else seems bothered that things aren’t really adding up
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I am certainly bothered by the lack of transparency, which could be overcome by having a two tier system of showing the vat price and the vat exemption exemption price, for customer’s who qualify for vat exemption.
All I can compare it to is curry’s, which end on .99 or only if it is on end of line or on ex display offer’s it ends in .97.
When you look at Vauxhalls pricing, the 1,2l Astra £4500 and the Astra Electric (150bhp) £7850. Q2 the Astra started the Enyak is a bloody good deal, if you want electric of course.
Yeah, I can’t get over the AP’s for the petrol Astra. As Vauxhall are part of the Stellantis Group, you’d have thought Vauxhall would be more keenly priced than say Peugeot. Same goes for the better-specced little petrol Corsa’s. Madness.
I have the top-of-the-range Clio Esprit Alpine full hybrid which, if my memory serves me well, cost me around £595 two years ago in AP. It is now just short of £4k !!! There’s a stunning looking all-new Clio 1.8 out now in Europe which is coming to the UK very end of this year or early 2027. I dread to think what that will be when I can order next March.
On the plus side ; the all-new Peugeot 208 is due early 2027. I am hoping that the current model (which I personally think is the best looking supermini there is) will be reduced big time early in the new year in order to make way for the new model & thus, a GT Premium example ‘should’ be heavily discounted by then… fingers crossed.
It’s been a weird day. There’s too much going on at once to have any idea of what’s happened.
The closest I can guess is that up to a certain point the effects of the changes covers the financial increases up until a point somewhere in between £3k – £4.5k depending on manufacturer. Then there’s the normal quarterly changes which have blurred the lines considerably.
Some increases appear in line with a VAT rise then another from the same manufacturer has gone up by less or has gone down.
There’s also the cost/quality perception within the AP range. I’ve heard a lot of comments about certain EVs being ridiculously expensive for what they are (mostly Stellantis) which could well be a reflection of the lack of quality and the resultant depreciation.
I looked at the guaranteed future value of the MGS6, which suggested MGs favoured finance company expect a larger SUV BEV to drop around 50%, which reflects the £18k ish we’re paying over the 3 years. That suggests a £6450 AP is somewhat required to cover costs, however, looking at that car in comparison to the similarly priced EV5 GT Line, as a customer there’s no way each is 6.5 grand equally ‘well spent’. The MG is nowhere near the quality of the KIA and then there’s the whole space, size and feel comparisons.
Smoke and Mirrors really does cover it well. So much has happened at once, it’s practically impossible to pull apart the individual changes to demonstrate whether the measures were entirely necessary or if Motability have snuck in additional margin or, indeed, manufacturers are offering smaller discounts for a Scheme that’s attracting more negative attention than they’d like.
Oh, just to add to the mix, there’s the whole Andy Burnham change that could happen as soon as 2 weeks away which includes an opportunity for the whole subject of the changes to be reversed again, at least until the next General Election.
It must be awful to have to think about choosing a new lease car with all this BS going on. 😂😳😳
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
When you look at Vauxhalls pricing, the 1,2l Astra £4500 and the Astra Electric (150bhp) £7850. Q2 the Astra started the Enyak is a bloody good deal, if you want electric of course.
Yeah, I can’t get over the AP’s for the petrol Astra. As Vauxhall are part of the Stellantis Group, you’d have thought Vauxhall would be more keenly priced than say Peugeot. Same goes for the better-specced little petrol Corsa’s. Madness. I have the top-of-the-range Clio Esprit Alpine full hybrid which, if my memory serves me well, cost me around £595 two years ago in AP. It is now just short of £4k !!! There’s a stunning looking all-new Clio 1.8 out now in Europe which is coming to the UK very end of this year or early 2027. I dread to think what that will be when I can order next March. On the plus side ; the all-new Peugeot 208 is due early 2027. I am hoping that the current model (which I personally think is the best looking supermini there is) will be reduced big time early in the new year in order to make way for the new model & thus, a GT Premium example ‘should’ be heavily discounted by then… fingers crossed.
Never been a fan of anything PSA group ever since Stellantis took the reins.
The seats in the Clio, I think are far more comfortable than in Peugeots, it migh just be my mind, but I found the seats in my daughter Clio, prior to giving her a Rover 75 V6, which beats the lot, than in a 208 hire car I had, plus, I don’t believe the 208 comes in PHEV form.
Apart from that, going back to the topic, I think to get a more accurate description of AP increases, you need to look at Q1 & Q2 because, prices shot up in Q2 and more stabilised in Q3. As if Motability applied the increases (VAT) in q2 to protect themselves against people ordering in Q2 and taking delivery in Q3, which has previously been spoken aboy on the forum.
Oh, just to add to the mix, there’s the whole Andy Burnham change that could happen as soon as 2 weeks away which includes an opportunity for the whole subject of the changes to be reversed again, at least until the next General Election.
Thanks great post but imo
Sorry to shatter anyone’s remaining glimmer of hope that anyone maybe still be clinging to
imo the thing is
Andy Burnham plans to appoint James Purnell, a former New Labour Work and Pensions Secretary, as his Chief of Staff if he becomes prime minister
Anything stained DWP is imo and experience twisted and corrupt ( expect no mercy)
Andyman jack of all trades and master of non is having to balance/ walk the very same tightrope as Starmer
There is no other path
IMO he is just another blindfolded contortionist attempting that very same walk
Hideaway Andy aint no savior
Oh please let me be wrong
The removal of premium brands will increase costs,
You may wish to revisit this but I know this will go against your core beliefs but bear with me.
There has to be choice on the Scheme, different brands, larger vehicles, longer vehicles, higher up vehicles, leg room choices etc.
There are a great deal of vehicles that Motability make available to customers that they loose money on, despite what people believe they are not looking to make a profit on every single lease, but across all leases.
I put it to you that a large percentage of these ‘Premium Brands’ fell into the side of not making a profit.
Motability Customers fall into different categories, the majority on this forum have more than a passing interest in ‘Cars’ so want to get the best vehicle available to them via the Scheme.
But, luckily for us, there are still a great number of customers that are happy to lease a car that falls into the category of profit making.
My Ford Kuga ST-Line X FHEV had an AP of £2,295 when I ordered in Q4 2025, it went up £100 in Q1 2026 but went down again to Q4 2025 price in Q2 2026 and has remained at that price for Q3 today.
I have adaptions to my car one of which has remained the same price as its been for a couple of years now but a big surprise was a £100 fall in the price for my Auto-Chair hoist though I’m told other adaptions have increased in price but honestly don’t know not being a user of those other adaptions. I don’t think I can remember a time when the cost of a hoist has gone down.
One thing I don’t understand is the VAT on AP’s as this, unlike anything else we buy is not shown in the final price, not that I’ve notice anyway. So with that in mind how are our wonderful media going to know that we are being punished for our free car? In their eye’s everything will look to remain the same.
The removal of premium brands will increase costs,
You may wish to revisit this but I know this will go against your core beliefs but bear with me. There has to be choice on the Scheme, different brands, larger vehicles, longer vehicles, higher up vehicles, leg room choices etc. There are a great deal of vehicles that Motability make available to customers that they loose money on, despite what people believe they are not looking to make a profit on every single lease, but across all leases. I put it to you that a large percentage of these ‘Premium Brands’ fell into the side of not making a profit. Motability Customers fall into different categories, the majority on this forum have more than a passing interest in ‘Cars’ so want to get the best vehicle available to them via the Scheme. But, luckily for us, there are still a great number of customers that are happy to lease a car that falls into the category of profit making.
I have to disagree with you
Firstly Motability are not catering to the needs of all their customers, who’s disability needs may on occasions only be met by them having large cars/estates or so called luxury brands. Systematically excluding such car’s was nothing to do with finance or meeting the needs of their customers or Motability Operations, remit. But fully down to catering to the whims and prejudices of the non Motability public, as well as for political party interest’s.
Secondly, I will put it in old money terms, If you have the different cost of Motability buying an L, GL or GLS car, the customer pays for the difference in price by paying their higher AP for each trim, at the start of the lease and at the end Motability get a higher selling price for a GLS than for an L,or GL, so make more money.
The same goes for Luxury brands which command a higher AP and a higher resale price, so I don’t see where or why Motability would loose money on cars which were essentially subsidized by the customer.
I would also bet that on average Motability would get cars back in better condition, on car’s that the customer paid a high AP on, as they were more likely to have treasured them more.
Can you please explain how we are lucky and how you know that there are customers that are happy to fall into the the category of leasing a car that makes a profit for Motability and how do you tell that it is their car’s that are making the profit for Motability.
I expect this has already been posted somewhere but here goes
Motorbility AP from LAST QUARTER TO PRESENT QUARTER price tracker
https://www.motaclarity.co.uk/motability-results.php?vehType=motab-car&make=&model=&fuelType=&transmission=&seats=&bodyStyle=&postcode=CM19+5PX&allowanceType=PIP&minAdvPayment=0&maxAdvPayment=8400&searchBy=postcode&_gl=1*gjrwdl*_up*MQ..*_ga*MjEwMjkzMzAwNC4xNzgzMDkwODg2*_ga_38VVTSV6SK*czE3ODMwOTA4ODYkbzEkZzAkdDE3ODMwOTA4ODYkajYwJGwwJGgw*_ga_25KN4E1YKX*czE3ODMwOTA4ODYkbzEkZzAkdDE3ODMwOTA4ODYkajYwJGwwJGgw
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