[fwippers]

With  much talk of this in many threads and VAT on AP’s coming in Q3, thought I would spend a bit of time looking at private leasing deals to see if they offer a better alternative. In April the higher rate of PIP will go up to almost £80 and in the final year of a 3 year lease, depending upon inflation will be around £86, an average of £83 overall, roughly £360 a month. There are numerous leasing options available, many offering, on paper, better value than Motability, but depending on individual circumstances. For those who have a good credit record,  live in a “low risk” insurance postcode  and cover under 10k miles annually, a private lease can work out cheaper in many instances. One word of caution, few leasing companies are as generous as Motability in their interpretation of “fair wear and tear”, something to consider, but many offer fully inclusive leases including both maintenance and tyres.

In fairness, this quarters  Motability offerings have been surprising and in a good way.

Topic

[Glos Guy]

Even when VAT is added to the AP from July, and IPT is also added, Motability should still be the cheapest leasing option, as the core lease is (and will remain) VAT free. There’s something very wrong if a commercial lease, which will include VAT on the whole lease, works out cheaper (or even the same).

We are looking to leave the scheme but won’t be leasing. We will buy outright, so won’t be worrying about being tied to any conditions (not that we would be overly worried, as we only do about 10k miles a year). It’s also a lot cheaper than leasing if you have the means to do it, which thankfully we do.

Our main motivation for looking to leave is that the scheme no longer offers a single car that even remotely appeals to us. Every single one would be a compromise in one way or another. EV’s don’t appeal (even though we could charge at home) and the choice of ICE SUVs is woeful and, with the removal of the few premium brands, won’t get any better. Any car that we buy will be something that isn’t on the scheme and never will be.

Also, if I’m being completely honest, all the negativity about Motability and Motability customers in recent months has created a stigma about being a scheme customer which has left a bit of a nasty taste in the mouth. With Labour, the Conservatives and Reform all being very critical of the scheme and the ‘benefits culture’ comments directed at customers, I don’t see this getting any better – and it could get a whole lot worse.

[Author]

Replies