The current Price Cap

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    Topic
  • #221843
    Macca

      So I know the issue of the Price Cap for vehicles is a fragile one, given that it seems to make little or no sense when and where its applied, but does anybody know what the current Price Cap is ?

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    • #221849
      Avatar photoWardyGTC
      Participant

        I don’t think there is one anymore. It’s just a case of MB and the manufacturer agreeing on what can be supplied and at what price while keeping AP’s at a level that they think is “affordable”?

        If I seem a little strange, that's because I am.

        Skoda Karoq SEL.

        #221870
        mitch
        Participant

          i think they have a different definition of affordable to me lol. anything over 2k isnt affordable by me.

          #221876
          Ele
          Participant

            My soon to be £42,000 top spec Megan E Tec Iconic at £1295 with all the toys+ is one to consider imo

            #221879
            Glos Guy
            Participant

              I don’t think there is one anymore. It’s just a case of MB and the manufacturer agreeing on what can be supplied and at what price while keeping AP’s at a level that they think is “affordable”?

              Spot on. If pressed, they will say that there is a price cap, but they ignore it when it suits them, yet will still use it as an excuse for cars that we want not being available!

              #221898
              RogerWilko

                Funnily I asked today at the one big day and was told it’s £8,000 AP, so whatever their formula is to get the AP below that figure

                #221914
                Macca

                  ‘Price cap’ as in the maximum retail value of the car as opposed to a maximum AP.

                  There used to be a figure that beyond which the vehicle could not be considered for the scheme.

                  Things seem so loose now, especially with expensive EV’s appearing, that i’m not sure its even still in play.

                  Maybe its one of the things that motability have relaxed in attempting to recover the scheme

                  #222020
                  Avatar photoAbercol
                  Participant

                    It had to go out the window, just about every EV is over the old cap and lots of ICE cars too, given that even a base model Kuga is over the old cap  & I’d place that as a pretty average vehicle today. Car prices have gone into overdrive since Covid.

                    The cap was a silly idea anyway, surely the scheme should try to squeeze as many cars as cheaply as possible onto the scheme, including cars that may not be the darlings of the showrooms, but many of us need cars like the diesel Berlingo – now back on sale in showrooms but not on the scheme.

                     

                    In life, it's not who you know that's important, it's how your wife found out.

                    #222026
                    MFillingham
                    Participant

                      I think the problem runs back to the Daily Mail event.  We can’t have expensive ‘luxury’ cars for ‘free’ while there’s press willing to brand us all as scrounging.

                       

                      There’s a lot that needs to be understood about how and why certain cars are allowed while others aren’t.  Blame seems to be placed on manufacturers not engaging but who can actually tell what’s going on?

                      I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
                      I'll try to give my honest opinion but am always open to learning.

                      Mark

                      #222023
                      Macca

                        If thats the case i’m not complaining, to me it was just a barrier.

                        Motability should agree the numbers on the range of cars, and a good chouce of specs, and then leave the decisions to us as the leasees. Those that want and can fund will do just that. Ultimately there would be options for every budget, and so it would remain and fully inclusive scheme.

                        #222035
                        MFillingham
                        Participant

                          If thats the case i’m not complaining, to me it was just a barrier. Motability should agree the numbers on the range of cars, and a good chouce of specs, and then leave the decisions to us as the leasees. Those that want and can fund will do just that. Ultimately there would be options for every budget, and so it would remain and fully inclusive scheme.

                           

                          I don’t disagree.  I get the feeling it’s not quite that simple.  Manufacturers seem to want either to only offload unwanted stock or models  or they’re happy to engage properly with us.  However, even those that engage appear to prioritise other retail routes over us, so the likes of the X-Trail e-power became quite popular so the models offered shrunk.

                           

                          The negotiation process seems to put us at a position where we’re the least desirable option for sales, whether that’s from hard negotiated prices or something else, I’m not sure. It’s almost as if we’re taking a sale away from higher profit routes rather than being looked at as a reliable source for additional sales.  Maybe the chip shortage isn’t over yet and manufacturing quantities are limited?

                          I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
                          I'll try to give my honest opinion but am always open to learning.

                          Mark

                          #222044
                          Avatar photoAbercol
                          Participant

                            Or the manufacturers dampen production to keep demand high, full retail at high price  = big profit over the old stack em high, sell em cheap model of yesteryear. Not helped by the EU insistence on all sorts of mandatory “safety” aids like speed limiters & ever crazy emission targets. These push production costs up & mean a lot of base model cars just don’t become viable anymore, Look at the demise of city cars, just too expensive to make with the required kit & they hammer their emission targets, better to sell less for more and meet the emission caps than pay fines/buy in credits from Tesla etc.

                            In life, it's not who you know that's important, it's how your wife found out.

                            #222052
                            Southamman
                            Participant

                              Abercrombie, I’ve worked in the Automotive manufacturing industry for 40 years.

                              Yes, going back to the late eighties,macrame we’re built and stored in fields for stock waiting to be called by the dealership.

                              That all changed with the implementation of Japanese Lean Manufacturing.

                              Now cars are built to order, but are constrained by the requirements of batch painting for example,where you paint a colour when enough orders for tgat are inputted.

                              Manufacturing works with suppliers on a 12 week cycle,m4 weeks actual build, 4 weeks tentative build,4 weeks raw material call.

                              A car has a build cost, which then is better with higher spec cars, you can see that far east manufacturers don’t have large options lists, as this causes money {even down to the wiring harnesses having to be specific today to save weight) now seems to be being followed by VAG.

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