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As I mentioned a few months back, having ordered a new Landrover Discovery, I will be shortly leaving the Motability scheme as my lease is due to end in a couple of months. I haven’t told Motability as yet as there is no requirement to at this very moment.
I was toying with the idea of buying my current Motability car as a run about, so telephoned Motability and requested a quote to buy it.
I was rather taken aback to be told that Motability no longer permit you to buy your vehicle at the end of the lease.
This seems to be borne out by their website:
https://www.motability.co.uk/contact/faqs/can-i-buy-the-car-at-the-end-of-the-lease
In fact all references to buying a vehicle direct from Motability at lease end seem to have been removed from their website.
I am not sure when this change of policy occurred, but it may have a bearing on some customers choice of scheme vehicle, if they were looking to ‘load it’ with options with a view to buying it direct from Motability at lease end.
Of course, one could try to ‘do a deal’ with the car dealer to whom the vehicle will be returned. However, they may want to ‘add in’ a healthy profit margin (knowing you particularly want that vehicle). Or possibly may want/not want the vehicle themselves, or Motability preferring it goes to the wider trade or auction. In short, a dealer/Motability has no obligation to sell it back to the ‘soon to be’ ex-Motability customer.
My view of this apparently change of policy is that Motability do not want customers buying their vehicles at lease end (and thus losing them) and are making it as difficult as possible, preferring to keep them captive on the scheme as a very profitable leasing customer.
In my case, they have ‘lost’ me anyway so I cannot really fathom it. Unless some ‘deal’ has been done with the trade/manufacturers to increase sales of new vehicles on the scheme and this policy change has been slipped in as part of it.
Whatever, it is something to be aware of if thinking about leaving the scheme and buying one’s vehicle.
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Hi
Just an update to my complaint I made on Saturday 13 April and got a reply this morning…
“Thank you for the enquiry form you sent us on 13 April 2024 regarding our recent policy changes.
I am very sorry to hear that you are unhappy that we no longer offer the option to purchase your vehicle at the end of the lease. I do appreciate that this is disappointing as you were hoping to keep the vehicle within your household.
The main reason for us making this change is because one of the fundamentals of the Motability Scheme is to support customers with worry free motoring, and the best way to do this is via a fully rounded lease package. To ensure we align to this value, we have changed our policy to no longer provide purchase prices to our customers.
I would like to assure you that Motability Operations takes all feedback seriously and I have made a record of your email on our records. However, if you remain dissatisfied, please let us know and we can arrange for a letter to be sent outlining your escalation route, which would be the Financial Ombudsman Service.
I understand this may not be the answer you were hoping for today, so if you would like to discuss this further please contact our Customer Experience Team by phone 0300 456 4566, or by using our Live Chat 8am to 7pm Monday to Friday, and 9am to 5pm Saturday.
Kind regards”
Is it worth requesting escalation as mentioned at the end?? As this change policy has been made during my lease period but I don’t know if Motability previously had it written in the policy whether you could purchase the vehicle at the end of lease period.
I don’t think it was ever in the lease, unlike 5 year extensions. They are pointing you towards the financial ombudsman in the full knowledge that they won’t be remotely interested. Irritating though this might be, I doubt the decision can be overturned. I always ask for a price at lease end out of curiosity and they have always been way too much, especially for a car with no warranty. Usually far better to buy elsewhere anyway.
@kmb786 – Although it was a ‘policy’ it was originally part of the scheme, it was something that was offered to the customers, this alone can be a ‘factor’ when considering to join the scheme, so as many have pointed out that they have removed the ‘option’ without informing those who joined and contracted with MB when this ‘policy’ was in action.
The fact they have removed it without formal notice could be considered a ‘breach of contract’ When I joined I actually took a screenshot of the policy stating I could purchase the vehicle (I would have to go through many photos to try and find this) incase this type of thing happened.
This could be considered ‘unfair’
It may be worth going to the Ombudsman because well… what have you got to loose?
It could be that this may change over the course of the next few years again, but for me it was a factor that helped me decide in joining the scheme being unable to purchase a ‘new vehicle’ but also being able to have one second hand that I have technically had since new with all the optional extras I need for my needs (medical and preferece)
Thanks for pointing this out and I think I will request what the escalation process is that they mentioned in their reply to my complaint – nothing to lose.
I got my current lease vehicle in November 2019 and was extended after 3 years but well before November 2023 when I understand the policy was changed regarding the purchase of vehicle at lease end.
I’ll keep you all updated.
An update: I have raised a formal complaint with the Financial Ombudsman, as policies which inform financial decisions are still ‘contractual’. Motability Operations can change policy, but this should not be retroactive. The policy of being able to buy the car at the end of the term caused financial decision to be made, for example, you may have chose a higher spec vehicle and paid for optional extras or higher AP.
I want to see what the FOS say about this, as if the policy did lead you to make a financial choice (to spend more), then there is some recourse in this respect.
I wish you the very best of luck!
However, I have always found Motability purchase prices over inflated 🙂
Thanks Kezo,
There is always the other way around of getting the dealer to purchase it and then buy it from them. Quid-pro-Quo being that you order the next vehicle from them as well.
Advantage of buying through a dealer is that you can get a warranty plus have the car serviced as part of the deal.
I cant see what the problem is really.
Motability lease you a car for 3 years, that is the contract you sign.
They are under no obligation to offer you the car once your contract ends.
Given that they did indeed at one time offer the vehicle to users after the contract ended is neither here nor there.
It is quite a large company and will have an extensive legal department who will make sure they work within the confines of the legal contract.
Unless you are a qualified legal whizzkid, I cannot see a resolution to your concerns.
Indeed, draughting a nice letter thanking Motability for the scheme and suggesting re-instating the option to buy at contract end would more likely achieve a better outcome than complaining to the financial ombudsman or whatever action you took.
Silverfox , and others, we recently came off the scheme and bought a car using the mobility monthly money to help pay for it, its a long story but it will work out better for us, anyway , when we bought the new car i arranged to take the mobility car to the dealership i was buying the new car from. we i collected the new car i asked what happens to the mobility car, do they get the option to buy it?
i was told that in the past they got given the option of buying the car when returned and often they would, sometimes they bought the car and re-sold it to the mobility customer that returned it. BUT now they dont get the option to buy, ALL cars returned are shipped off to auction now with no other option (so they say, dont know if true but there was no reason for them to say this) so the buy from the dealership option seems to have gone too!
I don’t want to enter into a debate about it, but it’s well known the Motability policy at the time the contract was signed was that vehicles could be sold to the hirer. The later policy changes should not be enacted retrospectively. Thats my only point, and it will be interesting to see what the FOS make of it.
The reason it’s going to the FOS is not of my choosing, but because Motability said that is the route for escalation because they can’t escalate it internally. Which is highly unusual, given its a policy they have made themselves.
Thanks Paul_1964.
Similar situation, but the dealer here tells me that the cars are listed on a ‘trade only’ auction site and that the cars are then bought by dealers virtually, who then arrange the shipment. The dealer themselves will bid on the cars using the auction site which they have trade access to.
I wouldn’t be too worried about the warranty or servicing as its been with us from new, so I could buy those separately. It would have to be a trade not a ‘retail’ sale. In all fairness, whilst Motability are completely within their rights to change policies, they should not be applied retrospectively.
I don’t want to enter into a debate about it, but it’s well known the Motability policy at the time the contract was signed was that vehicles could be sold to the hirer. The later policy changes should not be enacted retrospectively. Thats my only point, and it will be interesting to see what the FOS make of it. The reason it’s going to the FOS is not of my choosing, but because Motability said that is the route for escalation because they can’t escalate it internally. Which is highly unusual, given its a policy they have made themselves.
I agree if a “supplier” changes the contract midterm, depending who the “supplier” is you either sign a new contract / the new contract doesn’t apply during the term of the existing contract or given “x” days to walk away without penalty. Similar happens with work contracts / banks and anywhere a contract is formed between a “supplier” and “buyer / Leaser / renter” etc etc.
I have always found it odd, how Motability can play with contracts midterm and (a) not directly inform those midcontract (b) do it freely when they want, which no other company would get away with.
Its not only the option to buy that has changed recently, lease extensions were shortened to 6 months from 2yrs, meaning those who payed a higher AP or loaded the cars with extra’s, with a view of extending the lease for the full 5yrs, also got cought up in contract changes however, some have successfully challenged this!
The critical issue here is whether or not the ability to buy your car at the end of the lease was specifically written into the lease agreement or not (from memory, I don’t believe that it was).
I recently took on Motability over their refusal to allow us to extend our lease as we didn’t meet the new criteria. I cited the fact that the option to do so was written in to the lease agreement that we had signed (by entering the PIN) and that cannot be changed mid-term without us being informed in advance of the proposed change and having the right to terminate the lease at that time due to the conditions of the agreement having been varied. Needless to say they backed down immediately and allowed us to extend to 5 years (in the end we didn’t need an extension, but that’s irrelevant 😂).
As for the ability to buy the car at the lease end, if it wasn’t specifically written in to the lease agreement then my view would be that it was discretionary and not contractual. If that’s the case then Motability would be able to remove that facility without consent or consultation. Whilst I have sympathy for those who got a car with a high AP and / or loaded their cars with options with a view to buying it after the lease had ended, if this wasn’t a contractual right then I don’t think people have a leg to stand on. There’s no harm in trying, and they may well agree to the purchase to keep the peace, but I tend to agree with others that Motability have always asked far too much for cars sold without warranty and you can almost always do far better buy buying privately.
Surely this is a lose lose situation. Even if Motability decided to allow a car to be purchased at lease end to keep the peace, or were forced to do so due to contractual obligations, they have every right to set the price and could inflate it to make a point:
“Hey, what’s the top book price for this car?”
“OK then, lets stick another five grand onto that and offer at that price!!”
Not saying they would, but they could!
Surely this is a lose lose situation. Even if Motability decided to allow a car to be purchased at lease end to keep the peace, or were forced to do so due to contractual obligations, they have every right to set the price and could inflate it to make a point: “Hey, what’s the top book price for this car?” “OK then, let’s stick another five grand onto that and offer at that price!!” Not saying they would, but they could!
Having asked for a purchase price at the end of every Motability lease (out of curiosity more than anything), I’d say that was the approach that they were taking anyway! 😂
An update: I have raised a formal complaint with the Financial Ombudsman, as policies which inform financial decisions are still ‘contractual’. Motability Operations can change policy, but this should not be retroactive. The policy of being able to buy the car at the end of the term caused financial decision to be made, for example, you may have chose a higher spec vehicle and paid for optional extras or higher AP. I want to see what the FOS say about this, as if the policy did lead you to make a financial choice (to spend more), then there is some recourse in this respect.
Kudos to you for pushing forward with this. I would be keen to see how this goes. I love my car and the option to purchase would be great because if I can, I will be able to buy a car that I specified, thats been maintained and meets my needs. If I get no issues with the car then I would love to buy. We have two cars at home, if I could buy this one and get another on the scheme after this lease, then I can let go of the older car we have and then have two newer cars.
I also have a plan- if I cant keep it and I want it, I could track the car using its app and I could stick an apple AirTag in the car to see where it ends up and then look to buy it. That would be strange to see it go and come back but if thats the way it works then so be it!
Thank you again for the update!
2024 Skoda Enyaq estate- 85x Sportline plus in Race Blue. Extras: Supernova 21 inch wheels, Maxx Pack, Transport Pack, Heat Pump and Pano Sunroof.
Ordered 31/10/23, Delivery 27/3/24Personally cant understand why anyone would want to buy an overpriced unwarranted car but respect those that challenge the right to do so if they so wish
Policies can change, but like other products, customers are usually informed of the changes before they happen and they are not applied retrospectively.
For example, there are many things policy related that are not ‘contractual’, but that the contract is based upon. For example, if you said were were not going to comply with a ‘policy’, chances are Motability would not enter into contract with you. If you argued the policy was not ‘contractual’, therefore they should enter into contract, they will state it is policy – and therefore your disagreement to abide by their policy means they won’t enter into agreement with you.
When this contract was taken out, the policy was that the car could be sold to the driver at the end of its term.
Policies can change, but like other products, customers are usually informed of the changes before they happen and they are not applied retrospectively. For example, there are many things policy related that are not ‘contractual’, but that the contract is based upon. For example, if you said were were not going to comply with a ‘policy’, chances are Motability would not enter into contract with you. If you argued the policy was not ‘contractual’, therefore they should enter into contract, they will state it is policy – and therefore your disagreement to abide by their policy means they won’t enter into agreement with you. When this contract was taken out, the policy was that the car could be sold to the driver at the end of its term.
I wish you luck in your quest, even though I agree with others that prices that have been quoted at lease end in the past have never represented good value for a car sold as seen with no warranty whatsoever (just because it’s been faultless in the past is absolutely no guarantee of what might happen thereafter).
I’m afraid that I don’t follow the logic of your argument though. Whilst it might be nice if organisations communicated policy changes in advance, they are under no obligation to do so if it’s not contractual. However, a legally binding contract (which we enter into when accepting a car) cannot be varied at will by one party, without the other party having the right to terminate the contract. Unfortunately the option to buy a car at lease end was never contractual, always discretionary and therefore can be removed at any time without consultation. I would therefore argue that it is not a retrospective change, as you never had the ‘right’ to buy the car in the first place, and it was never written in to the contract.
As I say, I genuinely wish you well, but I can’t help but feel that you don’t have a strong case. Do let us know if you get a positive resolution with the Financial Ombudsman though, as I will be very interested to know how they come to that conclusion. As far as the law is concerned, every day is a school day!
However, a legally binding contract (which we enter into when accepting a car) cannot be varied at will by one party, without the other party having the right to terminate the contract. Unfortunately the option to buy a car at lease end was never contractual, always discretionary and therefore can be removed at any time without consultation. I would therefore argue that it is not a retrospective change, as you never had the ‘right’ to buy the car in the first place, and it was never written in to the contract.
Agree, also that from what I have read over the last year or so, prices at end of contract have been extremely high.
What I can’t understand is, rather than sell the car to you at the end of the lease for a fair and responsible price. Motability would rather sell it at auction for a much lower price.
where is the logic behind that?
What I can’t understand is, rather than sell the car to you at the end of the lease for a fair and responsible price. Motability would rather sell it at auction for a much lower price. where is the logic behind that?
The logic is that they don’t want people to leave the scheme as they make a lot of profit out of each lease. Whilst some people will buy the car for their spouse / partner etc and order another scheme car, the rocketing APs in the last few years have made many people question whether they want to splash out over £12k in benefits, plus pay an AP of thousands more for a car they will never own. If people are happy with their car and can buy it, they might be tempted to say to themselves that they don’t need a brand new car and leave the scheme. It’s the same reason why the asking prices were always way too high – to deter people from leaving the scheme. I guess that with APs rising so much, less people were being deterred by the steep asking prices, so the option has now been removed altogether to make it harder for people to leave the scheme.
Personally cant understand why anyone would want to buy an overpriced unwarranted car but respect those that challenge the right to do so if they so wish
When we bought our Volvo V60XC off Motability three years ago they charged us a very reasonable price, especially considering used car prices were at their post-covid peak at the time. Furthermore, they went to some effort to make sure the car would be ok for some time to come, including paying for the next service and MOT to be done ahead of schedule, and paying us the good condition bonus. Since then we have waited in vain for a similar model to come back on to the scheme, so the decision to buy for us was definitely the right one.
If we were to come back on to the scheme, the option of being able to buy the car that completely suits our needs at the end of the lease would have been reassuring, bearing in mind the much reduced choice of cars on the list these days.
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