UK Brands could opt out of Motability?

  • Creator
    Topic
  • #189358 Reply
    se

    Here is a thought, why don’t the UK dealers opt out of Motability and develop their own schemes?

    I am guessing the numbers whom get a form of allowance for mobility far outweighs the number of Motability customers. So there must be a significant market potential for the brands to develop their own offering for non general public customers. Each brand could offer slightly different benefits or tweaks to be more competitive with the other brands

    It isn’t as though they would have to do much extra:

    a) All the UK brands have associated finance companies which have leases in various forms. All that would be needed is to assign the mobility benefit direct to the finance company or have the individual pay the finance like regular retail customers

    b) All the UK cars come already with 3 year warranties and break down assistance.  So nothing to change there.

    c) Servicing and repairs, tyres could be built into the lease as it is now for commercial leasing.

    d) More profit/less costs to the dealer / brand.  As a minimum the dealer / brand may have less paperwork and not have to work within the constraints of the Motability scheme

    e) More choice to the customers. Currently, there are many vehicles not on Motability’s scheme for one reason or another.  Plus limited editions, special deals,  end of production offers never get passed through to us.  E.g when a model is being revamped, quite often you see limited editions or massive price reductions to clear old stock. I have never found these on the scheme listings.

    f) Simpler for us.  When there is an issue with the vehicle like I have now, the responsibilities to get it fixed are split between Motability and the dealer.

    The more I look at the scheme, the less advantage I can see of Motability Operations being there ….

Viewing 11 replies - 1 through 11 (of 11 total)
  • Author
    Replies
  • #189365 Reply
    wmcforum
    Which Mobility Car

    When JLR (Jaguar Land Rover) were all set to join the Scheme a few years ago, then at the very last minute did not, they vowed to make a parallel Scheme to take on Motability. The best they have come up with is Pivotal (https://www.drivepivotal.com). The elephant in the room is VAT.

     

    #189371 Reply
    rox
    Participant

    Each manufacturer would have to setup some charity to run that scheme and it’s just not viable. Plus how else will MBO have a monopoly, so they can raise slush funds to donate to other causes outside the scheme, from the profit they make from the scheme and us..

    Meinwhile the ceo of mbo said they sorry but ap’s will have to rise going forward..

    I left the scheme a few weeks ago and bought a new car as i don’t see leasing being as good an option as it was for me in the past. All things considered, alot is to do with the high ap’s, lack of choice, huge waits for cars and the profits they are making from us that are not really being handed back down. It is a shame there is no other alternative to vat free disabled motoring.

    #189374 Reply
    WardyGTC
    Participant

    Three major hurdles;

    VAT

    Charitable status

    Credit scoring

     

     

     

     

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

    Mercedes Benz B180 Premium Plus.

    #189378 Reply
    Jojoe
    Participant

    WardyGTCParticipant
    Three major hurdles;

    VAT

    Charitable status

    Credit scoring

    All of which could easily be overcome.

    VAT – Government already offers VAT free purchases on items for disabled people, extend it to cars.

    Charitable Status – Let Motability stay but only handle the finance, transfer of PIP to manufacturers, they could also handle insurance and breakdown recovery. Allow them to make a little profit and raise charitable funds elsewhere.

    Credit Scoring – See above

    Motability have gotten too big and unruly, too many people taking a piece of the the PIP pie.

     

    #189380 Reply
    Rene
    Participant

    VAT – Government already offers VAT free purchases on items for disabled people, extend it to cars.

    It already extends to cars.

    Current: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19
    On Order: VW Golf GTE PHEV DSG MY23

    #189381 Reply
    capuchin
    Participant

    It doesn’t extend to cars. Motability have a special legislative exemption.

    The only time you can purchase a car vat free outside of motability is if BOTH the following conditions are met:

    a. You are a wheelchair user. (somebody who uses one all the time)

    b. The car will be permanently and substantially adapted.

    This is also why there can be no challengers to Motability. It would require specific legislation to exempt them from vat. (being a charity would not be enough) If the vat hurdle was so easy to overcome, there would be multiple challengers to motability already. It’d be a hugely profitable sector.

     

     

    #189384 Reply
    Gordon

    @SE

    just thought I’d mention that I agree, special editions don’t often become available but years ago, I visited my Mercedes dealership to look at a smart car. They had a stunning bright orange special edition car in the showroom. I said that it’s a shame it’s not on the scheme. The salesman phoned Mercedes HQ and they agreed to put in on especially for me and offered an AP. In the end I ordered something else but they were very flexible way back then, I’m not sure it would happen now, even if cars were readily available.

    #189417 Reply
    Rene
    Participant

    It doesn’t extend to cars. Motability have a special legislative exemption. The only time you can purchase a car vat free outside of motability is if BOTH the following conditions are met: a. You are a wheelchair user. (somebody who uses one all the time) b. The car will be permanently and substantially adapted. This is also why there can be no challengers to Motability. It would require specific legislation to exempt them from vat. (being a charity would not be enough) If the vat hurdle was so easy to overcome, there would be multiple challengers to motability already. It’d be a hugely profitable sector.

    It’s funny, you first say that “it doesn’t extend to cars”, to then explain to me that it does extend to cars.

    What you seem to ignore is that the guy said “Government already offers VAT free purchases on items for disabled people, extend it to cars“. This only applies to stuff that’s either designed or adapted specifically to your disability. I said that those VAT free purchases on items for disabled people already extends to cars. I don’t need to point out that they need to be specifically adapted, since that’s the main stipulation with the entire argument (VAT free stuff for disabled needs).

    The point very much was the one you made: it requires (extensive) legislation to be able to implement his “easy solution”. You’re of course correct that if there was an easy solution like it was suggested, the market would be flooded fast. Investors would jump at the opportunity.

    There’s no easy solution here, and more importantly, it’s actually quite hard to come up with any solution that doesn’t have unintended negative side effects. Starting with the obvious: as soon as something becomes “for profit”, the poorer people get shafted. Royally. Just need to look at the US to see what happens if sectors become competitive, be it prisons for profit, schools for profit, healthcare for profit – support for disabled for profit inevitably will lead to exploitation. Even more so than already is happening.

    Current: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19
    On Order: VW Golf GTE PHEV DSG MY23

    #189433 Reply
    se

    There are many things that need to be worked out in detail.

    VAT.  If Motability can get a “special case” (which is a bit suspect in itself as you should not have rules modified for 1 business or charity) then the the UK could make a wider allowance for UK car brands.

    Alternatively,  with the cost savings on administration and discounts required by Motability there would be more savings to absorb the VAT element

    Or  just add the VAT element to the residual value at the end of the lease. Afterall many Motability cars at the end of 3 years have very low mileage and look almost new and very desirable on the used market

    Credit Scoring & Eligibility Similar to what happens now, the mobility payment could be sent direct to a leasing company or if someone wants to pay more, from their personal account.  There could be more flexibility in monthly payments (higher for a better specked car) or lower monthly for a longer lease.

    If customers stop paying the lease or become intelligible then much like now, sadly the car gets returned.

    Leverage Affinity  Many car owners have an affinity to one particular brand and will always select cars with the same badge.  If you have built a relationship with a dealer and have looked after your cars then the dealer is more likely to work with you to pre-order a vehicle knowing that they will get a great preowned car in 6 months time.

     

    Reading a lot of the posts on the forum, there is a lot of frustration with Motability and the service which now offers little in the way of service to customers or dealers and that if a core group of brands (Ford, Nissan, Peugeot/Citroen etc.) got together they could formulate a replacement scheme between them.

     

    #189565 Reply
    tinytim
    Participant

    To be fair to Motability i have had some grievances in the past with them but they are subsidised by the Gov and with banks in tow and i do think looking around for my car i have on order it would be way too expensive to have on any contract hire or lease.With the cost of petrol now at around £10 a gallon we could do with tax free petrol and even electric if that is your car choice.

     

    tim

    #189647 Reply
    Richard

    You’re relying on the government to change laws, its not going to happen. They’ll say if we exempt VAT on cars for disabled people it’ll be open to abuse blah blah.

    Fact is the gov that makes my life as miserable as possible more often than not is not going to do a thing to make life better or easier.

    It’s always going to come back to credit checks as unless they can get direct access to deduct at source you can opt to not pay as per a normal credit agreement.

    I walish someone would take on Motability they’ve gotten greedy, fat & lazy & need a wake up call

Viewing 11 replies - 1 through 11 (of 11 total)
Reply To: UK Brands could opt out of Motability?
Your information: