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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.