- This topic has 32 replies, 6 voices, and was last updated 3 years ago by Nerhipperton.
December 22, 2017 at 9:42 am #36739crispy
Price cap raised and other changes from Q1
December 26, 2017 at 5:03 pm #37133Glos Guy
At last. Some common sense prevails. Whilst there are still restrictions, the slight flexing of the price cap but, more importantly, the additional ‘discretionary’ vehicles, means that those of us looking for a reasonable size SUV (needed for wheelchair) with a decent engine, paired with auto transmission (essential for hand controls) now have some vehicles to chose from once more – and not just the poverty spec versions.
I have never been convinced that a price cap was ever warranted. With all due respect, those who say that Motability should just provide cars that get disabled people from A to B and that the ‘tax payer’ shouldn’t be subsidising ‘luxury cars’ simply don’t understand how the scheme or vehicle leasing works. Be clear that, whatever Motability car you chose, you are paying the full leasing cost. The tax payer doesn’t subsidise a single penny. First of all, you sacrifice your PIP which, over 3 years, costs YOU over £9,000 in lost benefits. Add to that any ‘Advance Payment’ plus the cost of any optional extras and you suddenly realise that you are paying a heck of a lot of money for a car that you never own. Then understand that Motability are one of the biggest fleet buyers in the UK and get their cars at massive discounts (probably in the range of 20-35% below retail price) and they are VAT exempt due to their intended recipients being disabled. Motability customers therefore pay the FULL cost of leasing the vehicle. On that basis, price caps make no sense. If the customer is prepared to pay more for a better car and, through a higher Advanced Purchase price, covers ALL the additional leasing costs, then that costs nobody a penny extra, other than the customer.
Many of us who fully understand the maths and how it all works were being tempted away from Motability due to the illogical restrictions and the fact that PCP deals (where you have no restrictions on what you can choose) can often get you a better car for less overall cost than through Motability. The justifications quoted by Motability for the slight relaxing of the scheme rules clearly acknowledge this, plus the fact that manufacturers have obviously been pushing back on the illogical restrictions, as they have been having to slash the lists of vehicles available through the scheme and have been suffering as a result – all of which means that Motability has less bargaining power and has been getting less attractive deals. Furthermore, the less desireable models now offered have poorer residual values, all of which makes them less attractive to Motability at end of lease resale time.
Our current car comes up for renewal in Q1. The choices of potentially suitable vehicles through Motability was down to 4 cars and some of those were probably going to be eliminated due to small boot size or underpowered engines. None was available in 4 wheel drive, which is our preference as we live in a rural area (snow due again tomorrow), and most required a number of expensive optional extras to bring them up to a decent spec. As a result, we were probably going to be forced to go our own way and do a PCP direct with a dealer in order to get a vehicle that fully meets our needs and preferences.
If the increased range availability of the Ford Kuga (shown on the price list above) is anything to go by, Motability is now back in the game. Titanium X and ST Line X models with a 2.0 litre turbo diesel in auto with 4 wheel drive could well tick our boxes. Our first choice on the Q4 list was the BMW X1 18dSE Auto, but we really wanted the 4 wheel drive version and the X-Line trim (with leather etc). Here’s hoping that the X-Line variant is one of the vehicles that makes the ‘discretionary’ list due to the fact it includes leather and nobody wants a used BMW with cloth seats, which makes the Motability restriction of SE models only counter productive for them when they come to sell it in 3 years time.
Perhaps Motability has recently employed someone who properly understands how all of this works – because you have to wonder at times.December 26, 2017 at 5:36 pm #37134Pudsey
Great post Glos guy – best explanation of the scheme (and why we have no need to feel grateful for what we are offered) that I have read in a long time!December 26, 2017 at 8:48 pm #37135John
“Lets be fair – unless you buy a heavy car 200 bhp should be more than enough to progress reasonably quickly
If you want a racing car then perhaps moyability ( which is mainly there to get you from A to B) is not where you should be looking for your car”
Why would anyone want a racing car on Motability thats just silly? What we want is goood road cars on the scheme. The Skoda VRS is far from a racing car but it’s a quickish car and one of the fastest on Motability possibly the fastest and it’s a great all rounder for family’s for those of us who dont want to just get to A to B but want to get to A to B with a smile on our faces. Now come a few days this car is no longer available due to this crazy cap. 300-400bhp bhp i could see the point on restricting it but 200 bhp is too low imo.December 26, 2017 at 9:01 pm #37138Kam
What a great post glos guy.
The way the used car market is, Motability can turn a great profit if run effectively. (That’s if they aren’t already)December 26, 2017 at 9:05 pm #37139Kam
John, I agree. I think there should be a 0-62 cap rather than pointing out at bhp.
I had a 200+ bhp Volvo xc60, was it fast off the lights? Not really, but never struggled on hills or overtaking..December 28, 2017 at 6:35 pm #37216Nerhipperton
I feel, Sir, 200 horsepower and insurance group restrictions are fair. For those in “need of” more horsepower, other options are available. Motability is balancing everything.December 29, 2017 at 4:44 pm #37252Nerhipperton
A very fine post. The many losers on Motability are those who cannot afford any advance payment who I fear will be left with very little choice outside the “small car” segment.