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I have posted before about our friend and neighbour switching to a ev, well this isnt a ev question just a ordering question.
They are due to swap 1st Sept, if i understand right they can order 12 weeks before that date, so thats june, before the new price list and the new changes.
if i am right again they can choose a car and place their order say 15th june (just for a random date) ,at that moment the AP is fix at that of the current price list. but if the new rules add tax after July 1st will they have to pay it in Sept when they collect the car? after all thats the contract date.either way if the car they choose as a Ap of say £1000 on the day they order but in july goes up they still only have to pay the lower price? i did when we had ours. but to be honest ours came down in price on the next price list and the dealer automatically dropped the Ap to the new figure.
its just the VAT that is concerning them , are they likely to see a extra 20% added to the AP when they come to collect the car??
Anyone know how it will work??
ThanksPaul
Aaso its been a while and i cant remember , do they have to wait till they get a letter from mobility before they place a new order? if so when does that come?
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Motability have been clear, if you order before July 1st, current Terms and Conditions apply. The AP at the point of ordering will stick. There won’t be an option to ask the retailer to cancel and reorder if it goes down after July 1st. If they are happy with the AP, then ordering before July is a bit of a no brainer.
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
Your friends can order from the date that their order window opens, which is shown on their online account. Motability are very good at sending out the letters confirming this, but they don’t have to have received the letter to order, as long as their order window has opened.
If there is a car that they like and they are happy with the AP then they’d be daft not to order in June. Their AP will be locked at that level, regardless of when the car arrives, and they will be exempt from most of the adverse changes kicking in from July.
Personally, I don’t think that all APs will go up by 20% in July. Two reasons. Firstly, a number of the adverse changes being implemented are to help absorb the impact of the government imposed taxation of Motability, in order to soften the blow to APs. Secondly, with the AP hikes we have seen in recent months, especially this quarter, it looks as though they have already started to cost in some of the increases (on the basis that Motability will have to cover the tax liability themselves for cars ordered now but delivered after July).
Whilst it is unlikely that many APs will drop in July, some still might. APs can vary by large amounts quarter to quarter and changes in excess of 20% (i.e bigger than the VAT hit) are common. @MFillingham what changes from 1st July to stop dealers who are prepared to alter the AP from doing so? Motability have never liked them doing it, but many do.
I am due to change 10th August my window opens 9th May, if you cancel your order, you will classed as a new customer, Mobility will fit a Smart Drive, so make sure you make the right decision.
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
I am due to change 10th August my window opens 9th May, if you cancel your order, you will classed as a new customer, Mobility will fit a Smart Drive, so make sure you make the right decision.
Since when does cancelling an order make you a new customer?
The terms say ending your lease early can make you a new customer. Never seen anything to say cancelling your order does that.
I am due to change 10th August my window opens 9th May, if you cancel your order, you will classed as a new customer, Mobility will fit a Smart Drive, so make sure you make the right decision.
Since when does cancelling an order make you a new customer? The terms say ending your lease early can make you a new customer. Never seen anything to say cancelling your order does that.
You now need to read the small print thing have really changed.
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
I am due to change 10th August my window opens 9th May, if you cancel your order, you will classed as a new customer, Mobility will fit a Smart Drive, so make sure you make the right decision.
I don’t believe that’s correct for two reasons. Lowering an AP doesn’t stop you from being a Motability customer, as you already have your existing car, so there is no break in being a customer. It’s just a 5 minute admin job and affects nothing else
Secondly, and I appreciate that this might change in the future, but Motability are saying that a ‘new customer’ is someone who has no previous history of being a Motability customer. Under the conditions that they have recently announced about SmartDrive, someone who has left Motability and rejoins at a later date will not count as a ‘new customer’.
Further to my last post, this is from the FAQ on the Motability website DriveSmart page;
You’re considered a first-time customer if:
You’ve never leased through the Motability Scheme before
Your last lease ended more than seven years ago
This is because we delete your personal data after seven years, in line with our privacy policy.As with everything, this may obviously change in the future but as per the new rules, anyone who leaves Motability but rejoins within 7 years will not be required to have a DriveSmart box (unless a driver is under 30).
Im still not sure i understand, Mark you say if you order before 1st july you are on the existing terms. but the contract for them is 1st Sept , they can just order early but the contract is sept isnt it? not the date of ordering?? so does that mean the new CONTRACT in sept is on the new terms anyway?
as regards cancelling the order if the AP’s drop (not likely) or if a more suitable car should appear in Julys price list. I was under the impression that you can cancel the order if you wish and could take a new order out in july if they really wanted to (not likely to be honest), my AP dropped by £500 last time i ordered and like i said the dealership contacted me to say they had re-done the paper work and reduced it for me.
if thats all the same then ordering BEFORE July if they can makes senseIm still not sure i understand, Mark you say if you order before 1st july you are on the existing terms. but the contract for them is 1st Sept , they can just order early but the contract is sept isnt it? not the date of ordering?? so does that mean the new CONTRACT in sept is on the new terms anyway? as regards cancelling the order if the AP’s drop (not likely) or if a more suitable car should appear in Julys price list. I was under the impression that you can cancel the order if you wish and could take a new order out in july if they really wanted to (not likely to be honest), my AP dropped by £500 last time i ordered and like i said the dealership contacted me to say they had re-done the paper work and reduced it for me. if thats all the same then ordering BEFORE July if they can makes sense
It’s more complicated than usual. I’ll try and detail each stage:
Contract end date is September, your window for orders starts 3 months early which would be June. This is to allow for delivery delays.
If you order a car as soon as the window opens, you are always guaranteed the AP and conditions at the time of ordering. That means if the AP goes up or the car leaves the scheme, your order would be honoured exactly as your ordered.
Some dealerships have agreed to cancel an order and reorder if the AP drops. However, if you place an order after July 1st, it will be under the new terms. That means 10,000 miles per year instead of the current 20,000. That needs to be considered before asking the dealership to cancel/reorder.
If you place an order after July 1st, it will be on the new terms.
All considerations are based upon when the order is placed regardless of when your current contract ends or when you take possession of the new car.
For example, you order an Enyaq on the 30th June at an AP of £2,000. That car takes 6 months to be built and delivered and ready for you. You still pay that £2,000. That’s the way Motability has worked for quite a while now. The difference is that the contract terms you agree to in June are 60,000 miles over the 3 years and European cover. In July, the new Advanced Payment is £750 but the new contract is for 30,000 miles and you have to pay for European paperwork. If you really want to pay the smaller amount, you will be required to accept the new contract terms.
Previously all contracts were the same, which meant it made absolutely no difference to you, the end user, as to whether the order was placed in April or yesterday as long as you paid the smallest possible amount. For this quarter only, that isn’t the situation. However, if you were to order in August for a November contract date, and the AP drops, there’s nothing stopping the dealership cancelling and reordering to give you the lowest possible price. It’s just a July thing.
I hope that helps?
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
@MFillingham Thanks for the further clarification. I was confused when you initially said that there won’t be an option after 1st July to ask the dealer to cancel and reorder if the AP drops.
As you have said, any orders placed after 1st July will be on the lower mileage limits and won’t include European cover, but for the majority of customers who do less than 10k a year and don’t drive their car abroad, it will still be worth considering asking the dealer to alter the order on the Motability system if the AP drops, as these two changes won’t affect them. Worth noting (for those who may be unaware) that this doesn’t affect the delivery date, given that the actual vehicle order is completely separate to the Motability system and is unaffected by any AP alteration.
Does anyone know how the VAT imposition on an ap from July will affect dealer special offers and discounts?
The way I see it, a vehicle ordered after 1st July with a notional ap of £2000 (of which VAT of £400 will be added) so in this example total ap will be £2400.
If a dealer wants to knock £1000 off the total ap as a special offer, who actually pays the VAT on the missing £1000. Is it the customer? Or does the dealer or Motability still pay the full VAT as if the full price has been charged or will it be based on the discounted ap?
If it is Motability who ultimately charges and passes on the VAT, would they even allow discounts on ap in future? Will this be the end of dealership special offers?
Or is VAT even payable on the full ap if a discount is offered, or will the VAT payable be on the new discounted rate only?
It all seems a bit of a mess as even my local dealer who almost always offers a discount currently didn’t know how it will pan out.
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