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Who’s to blame for the AP increase?
1 Is it the manufacturers? Are the manufacturers giving motability less discount? Are the manufacturers trying to suppress motability customers?
2 Is it motability. Are motability increasing the AP to offset new leases or extended leasrs? Are motability trying to make more profits?
What are your thoughts?
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£2000 increase on the Tourneo Custom Titanium….. Wow.
Motability are owned by banks who are known for their greed. I also think that they are not the best of negotiators and also don’t make the most of their power in the market. They make far too much profit and should cut AP’s rather than put them up like they do.
The scheme is now becoming too expensive for a lot of people.
i think mostly its manufacturers. they are either suppressing or gaining more money if people still go for the car. they have a limited amount of cars and if they have no issues selling them then they either charge motability customers more or just remove them completely.
at moment at least, motability will have little say.
Current Car: Hyundai Kona Premium EV...2 way 40kg hoist
Last Car: Toyota C-HR Excel Hybrid...4 way 80kg hoistThe cost of producing a car has greatly increased.
the current social distancing rules has reduced the amount of cars per hour that can be built, whilst fixed costs have increased at all factories worldwide.
Also, all manufacturers now build to order, not stock holding.
add to that the chip shortage and the demand for new cars (people not going on holiday means more disposable income to buy new cars)
add all those together means less cars available at reduced discounted prices.
No idea who’s to blame but that is a shocker. Can’t believe how much the AP on the cars I’ve had recently have rocketed.
At this rate as @Elliot said,
The scheme is now becoming too expensive for a lot of people.
Joss
Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.It is not without note that private, off-scheme lease deals direct with dealers/lease specialists can be had for much less than Motability. That said, I must admit I have not gone into finer details, just looked at the “Buy here” click-throughs on mags like What Car? Monthly payment about the same (in places) but the deposit/AP often much less than AP for same vehicle on the scheme. Personally, at the moment, I would not dream of going private – the all-inclusive nature of Motability is its USP for me. Gladly pay extra to avoid having to deal with a whole host of exploitative box-tickers selling insurance, windscreens, tyres etc.
If it was the case of increasing car prices being the case, the private leasing companies would be putting up their prices and they aren’t.
At present there are a number of complex matters at play, i is difficult to pinpoint one single matter.
@fwippers that said, motability operations are sitting on a huge cash account surplus which could easily be used to subsidise the scheme for a few quarters. Their accounts are obscene given the monopoly they have benen given.
If I didn’t live in a high insurance area, private would be a no brainer.
It is not without note that private, off-scheme lease deals direct with dealers/lease specialists can be had for much less than Motability. That said, I must admit I have not gone into finer details, just looked at the “Buy here” click-throughs on mags like What Car? Monthly payment about the same (in places) but the deposit/AP often much less than AP for same vehicle on the scheme. Personally, at the moment, I would not dream of going private – the all-inclusive nature of Motability is its USP for me. Gladly pay extra to avoid having to deal with a whole host of exploitative box-tickers selling insurance, windscreens, tyres etc.
You can get an all-inclusive deal with most private leasing companies.
Motability are by far the largest leasing company in the UK, I believe.
Therefore they should be able to negotiate the best discounts in the market. This must be passed on to lower APs.
Plus have a big say as to what a Motability vehicle should have fitted as standard. Such as rear camera, front rear parking sensors, tyres that work in the winter as well as the summer. Michelin cross climate for example. Full size spare wheel/tyre. SOS button so driver can summon help.
If not fitted as standard then have them listed as a no cost option, like metallic paint is now.
“Motability” is a charity and should not make a profit, yet it has £2.4 billion cash stockpile and pays its boss £1.7 million a year.
I have a daughter who is 20 when needed she drives for me. Shopping getting medicine even picking up my other daughter from school when I am not to well. She has been driving for 3 years the full term of my lease. In the beginning was just curious and got a quote from a insurance company. She would have had to pay £4000 insurance and the car was only group 15 so in some regards it’s a no brainier for me. My other daughter will be turning 17 and if she passes her test I will put her on it to when the first daughter turns 21. So it’s the whole package you need to look at
“Motability” is a charity and should not make a profit, yet it has £2.4 billion cash stockpile and pays its boss £1.7 million a year.
Motability Operations, is actually a stand alone organisation, owned by four banks, and funded by a variety of sources such as the resale of vehicles on the scheme, issuing of bonds etc .etc ., and to be clear, ‘it does not receive any funding from the Government / tax payer’, and btw., any profits made are reinvested in Motability ,and not distributed ( to perhaps be wasted by some Government Dept or another ) so in effect, Motability profits are already working for us, by being used to keep costs down!
As an example, It’s bulk buying power allows Motability to negotiate far better deals with car manufacturers than individuals can get , and the same applies to insurance, servicing,repairs Etc and this alone makes it a fantastic scheme for the disabled, allowing them to contract hire a reliable vehicle ( or mobility scooter) very often at a low or even no advanced payment, in order for the ‘disabled person’ to become/ remain mobile.The National Audit Office report on Motability says-
“The Motability scheme delivers an excellent service to its customers, earning remarkable satisfaction levels. Motability Operations’ management deserves credit for having turned the business around and inves ting in features that have enhanced benefits for customers.
Back to the point made, “There is nothing wrong with profit” – in fact it is essential to keep any business going – and remember, businesses employ people etc. etc.and this particular business provides us with a range of decent vehicles for ‘mostly’ very small deposits, or advance payments!
Even non profit making , or ‘not for profit’ businesses have to make a ‘surplus’ or will go out of business very smartly!
As a volunteer director of a ‘not for profit’ Credit Union , I can confirm that a ‘surplus’ is essential, not just for the business but for the ‘ Customer’!
FDepending on the business of course , some of the profit/surplus will need to be used for growing the business ( potentially employing more people, and in our case providing better choices ) maintaining the business, kept n reserve ( to cover
unforeseen eventualities ) and for covering upcoming increased costs , including staff salary rises etc?Making profits/ surplus is essential , to keep Motability viable !
Motability profits are certainly not being utilised to keep costs down for the end customer. Residual values are at an all time high, AP’s are up, and the choice of vehicles is down.
Motability Operations gave £500,000,000 to Motability the charity before the Government called them out on hoarding £Millions, this is ten times their normal donation to the charity.
Motabilities staff have conditions second to none, private health care , non contributory pensions and high salaries all this for a job that is, for many of their employees, no more than a call centre job (nothing wrong with working in a call centre of course.)
They now have three offices to pay for, in London. Bristol. Edinburgh, two of which must be the most expensive cities in the UK to rent.
The offices in London and Bristol had 10,s of millions spent on them on renovation, decoration and various forms of art work.
Profit is whats left after youve lined the pockets of the fat cats and in this instance the not so fat cats i.e. the workers.
Tell me this money is being spent for our benefit.
The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.Covid is the perfect cover.
Motability could easily streamline its operations and keep costs down, but no it’s us that keep them in their lavish offices and pay then well above average wages.
Brydo, that is one hell of a kick in the teeth for Trades Unions don’t you think?
Ever since day 1 , they have fought for better wages and better working conditions for workers, whether they be blue or white collar, and yet when a company or enterprise provides good salaries, pensions, working conditions some people complain that it is too much?
Wow!!!
Would you work in a dump, and be satisfied with lower wages than those working in the next building, of course not, so why should Motability pay less and provide lesser working conditions.
In 2017, the net result of the cost of providing the scheme, after allowing for the income from PIP / DLA, Advanced Payments etc was a net profit, after tax, of £93.5m. Which, frankly for an organisation of this magnitude is not excessive!
As with all such organisations, Motability Operations also build up ‘reserves’, which in layman’s terms, are accumulated and unspent profits to cover unforeseen eventualities – good business sense as well as potentially a legal requirement ,
The controversy occurred when it was reported that these reserves totalled £2.3bn (which to some is excessive ), which caused sensational headlines and derogatory stories about Motability, but the true message which needs to get ‘out there’, is that these reserves have been built up over many years – the previous audit was in 1996, when the reserves were £61 m.
So,most reasonable people will understand that the annual surplus is not excessive.
That is not to say that some of these reserves could not be spent in improving the scheme, but throwing money at providing flash cars ( in some non disabled people’s and newspaper’s eyes) may not be the best way forward?
At this rate as @Elliot said,
The scheme is now becoming too expensive for a lot of people.
I can’t agree with this.
Currently there are 125 vehicles on the scheme with £0 up front payment – 49 if you remove manual cars.
This also includes quite a few electric cars too.
I understand some may have some very specific requirements, but if I was struggling, then I’d have to just ‘make do’ with something on the scheme – and I’m sure there would be something suitable (even if it doesn’t have a high spec).
Compared with trying to go privately, it still seems a no-brainer to carry on with Motability.
Remember:
- Insurance included
- Adaptions included (not all, but a decent amount)
- 15k miles per annum
- tyres and servicing
- £600 good condition bonus
You won’t get any of those going off the scheme.
And as for prices? I remember paying over £5k for a Mazda 626 20 years ago. That was a fortune back then!
Is it 15k now? I thought it was still 20k/year.
“You can get an all-inclusive deal with most private leasing companies.”
Well, I have not been able to find one that includes insurance together with tyre and routine services, for example. Maybe I was looking in the wrong place. Can you suggest any companies that DO offer all-inclusive?
@Elliot… “You can get an all-inclusive deal with most private leasing companies.” Well, I have not been able to find one that includes insurance together with tyre and routine services, for example. Maybe I was looking in the wrong place. Can you suggest any companies that DO offer all-inclusive?
Exactly. No chance of any ‘all inclusive’ scheme matching Motability.
Even if you could find one that included insurance, servicing, tyres and 20k per annum miles, not only will it be a huge cost, you definitely will not get a good condition bonus. Further, I’ve known people handing back lease cars that have been subject to an hours worth of checking for damage, and tiny scratches being charged for.
Motability is definitely not perfect, but there’s nothing comparable.
Is it 15k now? I thought it was still 20k/year.
You’re right, I was mistaken with 15k.
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