New to the scheme and totally confused!

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    Topic
  • #164034 Reply
    Kim

    Hi guys,

    My 16 year old son has become eligible for the Motability scheme so we are due to sign for a Peugeot 3008 Hybrid GT which we are having to pay around £2750 towards.  This is a lot of money for us but we planned on buying the car at the end of the term as we had been told by the ‘Motability Specialst’ at the dealership that Motability are “very very generous” with their settlement figures.   However, I’ve been reading on this forum and am horrified to find that this doesn’t seem to be the case AT ALL!

    I do not think my sons award will be renewed as I think by then, he will be in a better position neurologically (fingers crossed!) which is why we intend to buy the car.  If he IS awarded it then he will get a car for himself so again we would be looking to buy the old one.

    So considering we are giving up around £10k in benefits plus putting another £2750 in at the start we are basically spending £13k on 3 years of motoring.  That’s around £370 a month and we will have nothing to show for it at the end of it.  I can actually BORROW £13k from my bank over 3 years and it’s only £388 a month!  And whatever car I spent it on would actually be mine at the end of it!

    I was told we would be offered the car at roughly it’s current auction price which is usually around 40-50% of the initial purchase price.  So we did the maths that the OTR for the Peugeot we are looking at is around £40k.   So after 3 years we would be offered the car for around £16k-£20k.  Making our total ‘spend’ on the car £29k-£33k which is okay for a car of that initial value and we know it’s been looked after.  However, after reading on here I just don’t know whether it’s even worth it.  It would financial idiocy for us to give the car back after 3 years but if they offer us a ridiculous price then we will have no option.

    We are looking to upgrade our current family car but wouldn’t be looking at a brand new vehicle if it weren’t for the Motability scheme.  It sounds so good but when you start number crunching, it’s not actually financially beneficial for everyone and perhaps its not the best option for us which is disappointing.

    It’s such a big decision, I don’t know anyone on the scheme so have nobody to ask, I don’t trust the staff at the dealership and my husband’s contribution to the discussion is “Whatever you think is best!”  But I don’t know what to do for the best!

    Any advice you guys can offer me would be really really appreciated because the award has already started (Aug) and with the current wait time for vehicles I need to make a decision and quick.

     

Viewing 25 replies - 51 through 75 (of 80 total)
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  • #164105 Reply
    Rene
    Participant

    I didn’t know that MB provide a charging point for free! Even for a Hybrid not a full electric? I was expecting to have to buy one.

    Yes, even for a Hybrid. All you need is proof that you ordered an EV/PHEV.

    An easy charging solution for electric vehicle customers

    Though, you do need to have off-street parking for this to be feasible (i don’t think they’ll install it otherwise).

    #164106 Reply
    Wigwam

    Motability do not provide charging points for hybrids.

    #164107 Reply
    Kim

    Rene, as I thought, MB only provide a free charging point for full electric, not Hybrid.

    #164112 Reply
    Rene
    Participant

    I very much stand corrected in that case. I genuinely thought this was for PHEVs as well (to the point where we were banking on that, too). Where did i read that then?

    In that case, do note that you can’t use extension cables to your car. If the supplied cable isn’t long enough, you’re pretty much out of luck (apparently there are companies that make extensions that are able to live through the current etc – but i’m not sure how confident i’d be).

    You would need to purchase an extra cable off of Peugeot (they only supply the cable to use with a Wall Box with the car), i think they’re 5m long – but they don’t recommend using that as your main charging means.

    Peugeot offers a grant for a Wall Box as well, but i don’t think we as MB customers are eligible for that – but you could get a grant from the government.

    https://www.gov.uk/government/collections/government-grants-for-low-emission-vehicles

    I double checked now, this specifically mentions the 3008 in their list for eligible vehicles, but before i state something as a fact (for obvious reasons now) i’d need to read into that myself. That’d be at least £350 towards the charger.

    Well.. That puts a dampener on our enthusiasm for a Hybrid. 🙁

    #164120 Reply
    Richardw

    I felt a bit like that but went with Pod point which was £599 after the grant. We’ve ordered the 3008 and are confident that we will soon recoup the cost with the saving on fuel.

    #164122 Reply
    Not_Even

    I’m just back from the Peugeot (Robins and Day) dealership – there’s an offer on at the moment to get the charging point for £150 when you order one of the 3008 hybrid models.

    #164125 Reply
    Rene
    Participant

    A motability customer wouldn’t be eligible for that, according to their terms.

    #164127 Reply
    Kim

    We’ve had a change of heart and are going to go for the diesel for the following reasons:

    I only do 150 miles a week and my current car does 42 mpg which means, according to the Which real Hybrid tests, the Hybrid will save me about £65 a month in fuel.  However, I’m going to be spending around £500 on a charge point which almost erases that first year of fuel savings.

    Then there’s the road tax issue.  If we DO buy the car afterwards, we will still be liable for the remaining 2 years of high road tax which is £480 a YEAR!  That’s because the OTR price for the car is over £40k.  As opposed to the petrol/diesel which are £155 as their list prices are less than £40k.  So that’s another £650 which erases the second years fuel savings.

    Add into that the extra £3k or so that the Hybrid will cost us to buy it at the end of the lease (and we may not be able to afford it) plus the fact that on the whole Hybrids are more expensive to repair, maintain AND insure – we hope to keep the vehicle until it’s around 6 years old so we have to think about this – so I’m just not sure it will actually save us anything in the long run.

    If we go for the diesel or petrol we can afford the top spec GT Premium, our fuel costs will be the same as they are now, we are way more likely to be able to afford to buy the car at the end of the lease, the road tax is reasonable, the insurance will be reasonable (same category as my current vehicle), my mechanic friend will be able to repair and maintain it for me without any issue….it just makes more sense.   As much as I didn’t want a diesel again, it’s not a deal breaker and the fact that the car is automatic (I’ve always had manuals but drive my Dad’s Auto regularly and love it!) and absolutely beautiful inside and out will more than make up for it.

    #164128 Reply
    Wigwam

    We have an XC40 hybrid and charge from a 3 pin plug overnight.  It draws 10A. There’s no reason not to use an extension cable if the plugs and sockets are in good condition, although we don’t need to..  We have looked at all other option, commando plugs (16A) and charge points, but feel there’s no merit in spending the money. The car charges from empty in under 4 hours. Any alternative would only reduce that to 2.5 hours.

    #164129 Reply
    Rene
    Participant

    If we DO buy the car afterwards, we will still be liable for the remaining 2 years of high road tax which is £480 a YEAR!

    That doesn’t sound right.

    https://www.honestjohn.co.uk/road-tax/peugeot/3008-2017

    #164130 Reply
    Kim

    My previous post needs an edit but I can’t seem to do it?

    Anyway, when calculating my fuel savings I said “my current vehicle does 42mpg” but the diesel 3008 will be around the same so in my head I’m using my current figures.  I consistently spend about £130 a month on fuel which is where I get the £65 from as the Hybrid is about 50% savings according the research I’ve done.

    #164131 Reply
    Kim

    Rene, that’s for cars up to 2017.  Cars registered after 2017 are on a completely different road tax structure.  Scroll down to ‘vehicles with a list price over £40K’ https://www.gov.uk/vehicle-tax-rate-tables

    #164134 Reply
    Kim

    I didn’t know either but good old Google alerted me and then I went on the .gov website and yep!  It’s £480 a year!  £155 standard rate plus another £325 a year for the first 5 years.  And it’s even more if you pay monthly direct debit! 

    #164136 Reply
    Kim

    Actually, it might even be £480 ON TOP of the regular tax.  I don’t know but what I DO know is that that is a LOT of money for road tax and I won’t be paying it.

    #164137 Reply
    Kim

    The 225 is cheaper yet according to the Peugeot website, that car is also over £40k.

    #164138 Reply
    Rene
    Participant

    Rene, that’s for cars up to 2017. Cars registered after 2017 are on a completely different road tax structure. Scroll down to ‘vehicles with a list price over £40K’ https://www.gov.uk/vehicle-tax-rate-tables

    Well damn.

    I didn’t even know that £40k limit existed (ie. the £335 “rich people tax”), that’s incredibly stupid for PHEV owners in general, since they’re more “eco-friendly (as in, less taxable emissions)” but usually are more expensive than ICE cars.

    Who thought that was a great idea? That means a PHEV costs more in tax than a used 450bhp V8. That’s proper idiotic. I stand corrected (yet again), this is too stupid to be expected by me.

    That being said: a PHEV can cut your fuel cost in half, if not more (especially if you go with an EV tariff with your electricity supplier). If you spend £130 a month in petrol/diesel, that’s around £1500-£1600 annually. Which means it’d amortise itself within a year – and in the first three years, you save £2250 in fuel. Which pays already for the charging point and the tax for the last two years (it’ll drop to £145 if i understand this correctly after 5 years) in the timespan of the lease itself.

    While this certainly isn’t as great a saving as one would think – it’ll still turn out cheaper. And, being a PHEV, it’ll also keep the resale value better, since diesels aren’t an easy sale anymore – whereas PHEVs are.

    This all makes my head hurt, actually. Maybe we’ll actually do just go for that Audi A3.

    As a sidenote, i will not comment on Wigwams posting here since i find it absolutely horrible that he suggests that it’s completely fine to use an extension lead when his own car manual states to never (literally says never) use an extension lead. Which means that if you do, and something goes wrong (and i did show him forums where people had things go wrong), you’ll lose insurance cover. Do your own research in regards to granny chargers (judging by how well you do research, i’m sure you’ll come to the correct conclusion), don’t listen to neither me nor Wigwam on that one.

    #164139 Reply
    Rene
    Participant

    Actually, it might even be £480 ON TOP of the regular tax. I don’t know but what I DO know is that that is a LOT of money for road tax and I won’t be paying it.

    As i understand it’s £145 + £335 for the first five years, then £145.

    #164140 Reply
    Wigwam

    There is no road tax payable for higher rate mobility claimants. None, ever.

    #164141 Reply
    Kim

    Rene, all might not be lost as we were going for the 225 Hybrid…according to this guide I THINK the 225 is £145 but there’s 2 engines on here which sound the same but obviously aren’t! 

    #164142 Reply
    Kim

    Wigwam – I know there’s no road tax on MB but if I buy the vehicle at the end, which is my intention, then I will have to pay road tax.  My son is the recipient of the benefit, not me.

    #164144 Reply
    Glos Guy
    Participant

    There is no road tax payable for higher rate mobility claimants. None, ever.

    True, but I think that Kim only intends to buy the car if her son loses the higher rate entitlement, in which case the road tax exemption won’t apply in either scenario.

    #164145 Reply
    Rene
    Participant

    There is no road tax payable for higher rate mobility claimants. None, ever.

    Kim is talking about buying the car after the lease (and her sons mobility claim that’s not expected to be renewed) runs out.

    #164146 Reply
    Rene
    Participant

    Rene, all might not be lost as we were going for the 225 Hybrid…according to this guide I THINK the 225 is £145 but there’s 2 engines on here which sound the same but obviously aren’t!

    I don’t know why that happened, but i do think it’s the bottom one that’s correct. And my suggestion that it’s £145 + £335 appears to be true, too (for once). But, as i mentioned, i still think it’ll amortise itself through the first three years alone, and then again once you eventually sell the car.

    edit: the £335 “expensive car tax” is only to be paid for 5 years, then it drops to £145. While the savings (in your case, around £750 a year) continue.

    #164150 Reply
    Wigwam

    Yes, I’d forgotten Kim’s idea is to buy the car after her sons mobility claim runs out. It seems to me best to let history take its course rather than anticipate too far ahead. But then I’ve never found life’s predictions work out.

    #164157 Reply
    Al2you
    Participant

    Kim

    Not sure if you are aware that after the 3 years you are entitled to £600 good condition bonus, providing your car passes the inspection. It might increase within the next 3 years too.

Viewing 25 replies - 51 through 75 (of 80 total)
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