Q1 2019 Pricing & News (1st Jan – 31st March)

This topic contains 107 replies, has 15 voices, and was last updated by  Mike 1 week, 1 day ago.

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    Topic
  • #67719 Reply

    Trev
    Moderator

    Early kick-off for the New Honda CR-V, available to order on the scheme from Jan –

    HONDA CR-V 1.5 VTEC TURBO S 2WD 5DR £1,899
    HONDA CR-V 1.5 VTEC TURBO SE 2WD 5DR £2,099
    HONDA CR-V 1.5 VTEC TURBO SE AWD 5DR 5 SEAT £2,299
    HONDA CR-V 1.5 VTEC TURBO SE AWD CVT 5DR 5 SEAT £3,099
    HONDA CR-V 1.5 VTEC TURBO SR AWD 5DR 5 SEAT £2,999
    HONDA CR-V 1.5 VTEC TURBO SR AWD CVT 5DR 5 SEAT £3,749

     


    Mota History - Nissan Qashqai Ford Focus Seat Leon ST Mazda CX-5

Viewing 7 replies - 101 through 107 (of 107 total)
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  • #68430 Reply

    Stewart

    If everyone lobbied their own MP then something would be done.

    If we stay silent then things will carry on getting worse.

    #68434 Reply

    DellBoy
    Participant

    Maybe someone could do up a draft letter that we can all share and get others to send in too

    #68436 Reply

    paulhelliwell

    i don’t see how motability can justify there ap when they only pay 50% for the car in the first place

    #68603 Reply

    solent60
    Participant

    i don’t see how motability can justify there ap when they only pay 50% for the car in the first place

     

    50% ??? I’m not sure that’s true. I was under the impression that Motability do not have to pay any VAT on new cars. VAT makes up a fifth of the price of a new car. The £18,000 cost of a mid-range Vauxhall Astra (for example) includes £3,000 of VAT which would normally go to the government. Obviously Motability do not have to pay this. Not sure where you get 50% from… but I’m happy to stand corrected!

    #68611 Reply

    Ad1

    Morning,

    I’m not sure where 50% comes from either, but I used get look after a companies small fleet (60 vehicles) and we got nearly 30% discount on two of the major volume brands under the assumption of placing orders for 3 vehicles per year so I expect with the volumes motability do 50% is a realistic figure.  Under your example the £15k car (ex VAT) costs motability £7.5 to buy, obviusuly other costs such as insurance maintenance etc that they pay for which need to be covered from the payments we make.

    #68617 Reply

    Mike
    Participant

    i don’t see how motability can justify there ap when they only pay 50% for the car in the first place

    50% ??? I’m not sure that’s true. I was under the impression that Motability do not have to pay any VAT on new cars. VAT makes up a fifth of the price of a new car. The £18,000 cost of a mid-range Vauxhall Astra (for example) includes £3,000 of VAT which would normally go to the government. Obviously Motability do not have to pay this. Not sure where you get 50% from… but I’m happy to stand corrected!

     

    If you want to listen to two and a half hours of the latest Treasury Committee and Work and Pensions Committee on Motability held on Wednesday just gone (9th January 2019), it partially addresses this point.

    https://parliamentlive.tv/Event/Index/a75d3364-1ed7-42c0-bff0-78cf0ed5c279

    (It is split into 3 consecutive sessions, firstly the National Audit Office, then Motability Charity, then Motability Operations).

    The National Audit Office state that for a Motability customer, overall Motability is 40% to 44% cheaper than commercial schemes. Also, they operate with a 40% discount on the vehicles.

    This can be partly accounted for due to the very advantageous tax regime Motability operate under.

    However, over 10 years customers have allegedly been over charged by £390m solely in depreciation savings albeit this figure is later disputed and somewhat mitigated.

    A couple of interesting points from the committee hearing are:

    For claims under £25k, Motability now self-insure.

    Only 36% of people eligible to use Motability, actually use Motability.

    Motability lose £3,800 0n every WAV on the scheme.

    There is an interesting mini debate over whether profits generated from disabled people should be ploughed into the Motability charity vice using these generated profits to reduce the scheme costs to the disabled customer. Sadly, this doesn’t really get answered, but is interesting never-the-less.

    Mike

     

    #68618 Reply

    Mike
    Participant

    Sorry, I forgot to add, if you wish to read the full National Audit Office report into Motability which my post above refers to, it is available here:

    https://www.nao.org.uk/wp-content/uploads/2018/12/The-Motability-scheme.pdf

    Mike

Viewing 7 replies - 101 through 107 (of 107 total)
Reply To: Q1 2019 Pricing & News (1st Jan – 31st March)

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