Forum Replies Created
- AuthorReplies
- December 4, 2020 at 4:59 pm in reply to: Why do car dealers not compete with each other for motability leases #131217
If the dealers only make £90, it makes you wonder, why do they bother with mobility cars?
Because they don’t only make £90! In the example 72dudes gave I suspect that’s what the sales person would make personally. The dealer would make a lot more. Dealers often spout this hard luck story that they don’t make much money out of Motability, but it’s to deter customers from asking for any discount on the AP or options. As ChrisK rightly says, dealers have sales targets set by both their owners (e.g. Marshall’s) and the brand. Motability sales still count towards these and, as ChrisK says, if you time it right, your ‘lowly’ Motability sale could tip them over the line for a big bonus. Also, if dealers didn’t have big margins to play with, how come some can offer £250 or £500 off AP’s? Rest assured that they still make money on those sales.
So, to answer Martinods original question, there are some dealers that offer deals that their competitors don’t, but as dealerships generally control the brand in an area there is often little incentive to do so, especially as the vast majority of Motability customers won’t even consider asking for a discount as they won’t realise that deals can be done (or wouldn’t have the nerve to ask). We fell into that trap with our first Motability car, but have haggled a deal every time since, even when not advertised. The bigger issue, IMO, is the fact that Motability Operations seem to be pretty hopeless at driving good deals. Savvy private buyers can easily get 10-20% off a new car, yet the AP’s that Motability sometimes quote for mainstream cars makes me wonder how hard they actually try. I suppose when it’s not your own money the incentive isn’t as strong. Then again, given the profit that Motability Operations makes on each car leased through Motability, perhaps they do get better deals than we think, but just don’t pass them on through AP’s.
I’m trying to get full spec of basic sport at £1449 auto has it got auto fold mirrors ?
Yes it does Mike. I’ve got the full spec off the Audi website and the Sport is pretty well equipped. Highlights;
LED Headlights
Power tailgate
Audis excellent MMI Navigaton Plus
Audis equally excellent Virtual Cockpit
Lane Departure Warning
Negatives are cloth seats, standard cruise (not adaptive), ugly wheels (but nicer ones for £150 more) and only black seats, so interior rather drab.
S-Line mostly adds styling details, but the wheels are better and it has privacy glass and ambient lighting. I wouldn’t like the sport suspension though (Sport model has standard suspension).
Yes, Audi! I’ve only sat inside the Q3 and liked its seat position height and loved how the cabin felt cosy. I still recall the amount of people asking on the homepage when this vehicle will come back on the scheme. But I have a feeling it may be withdrawn next quarter.
What makes you think that it might be withdrawn next quarter? Whilst there appears to be no rhyme nor reason as to why cars come and go from the scheme, it would be very odd to add a new car and then withdraw it a few weeks later, especially as those few weeks contain the Christmas break when very few people will be ordering cars. It would be a lot of work for nothing. The BMW X1 is a very popular car on the scheme, so it’s no surprise that, in an increasingly competitive market, Audi would want its direct competitor on the scheme.
Had hoped this would come on the list as had one privately years ago and adored it but I do quite like the BMW X1…..ah decisions!
Yes, it’s certainly nice to have the choice. A few years ago Motability really slashed the choice of decent cars available on the scheme and it’s encouraging to see that a number of them, such as the Q3 and BMW 3 Series, are returning. Whilst I don’t agree with price caps (as ALL additional costs of more expensive cars could simply be covered by bigger AP’s for those prepared to pay them), I am hoping that they raise them in January, as they’ve been stuck at the same prices for a few years now.
Hmmm. Now that’s interesting. Another car to add to our list to look at when we change in Q1. The Q3 was on the list when we last ordered, but we discounted it as it felt very small and cramped compared to the Tiguan that we went for. No doubting that it’s a better quality car though. Shame that it’s only available with fairly low capacity engines, but it’s a small car so should probably be adequate. Shame also that to get the 4WD auto you can’t have the S-Line and have to have a Sport instead. Maybe the choice may widen in Q1 (unless Motability’s illogical price caps rule them out)?
Elliot, you will absolutely love it! Only problem you may have is the side mirrors (you’ll get used to it) and getting out of the vehicle as the door sill/pillar tends to get in the way. Kind of like getting in and out of a BMW i8
. The mpg is great for me also! The boot is gigantic in my Touring and marvellous if you have a wheelchair! File28, it’s common mate, I know for a fact I would never treat my customers like this and thank you very much!
Hi Dave G. Love the exterior photo of your new 3 Series Touring. That car is top of our current shortlist (due to order end of Q1, so hoping it will still be available) and I would probably choose the same exterior colour as you, with the Oyster & Black interior (which I had on my privately owned 5 series and loved). Your point about the boot being large for a wheelchair is well made, but the issue for us (which could sadly rule the car out) will be how my wife (who is a full time wheelchair user) finds getting in and out of the car compared to the SUV (Tiguan) that we currently have. If not, the X1 could be an option but it’s very much a budget BMW compared to the higher series models and last time we discounted it for that reason, along with the fact that the seats were too small and the car felt cramped compared to the Tiguan. We’ve had four Tiguans over the years and I really fancy getting another BMW, but if the 3 Series doesn’t work for my wife I can see us getting a fifth, most likely the 2.0i 190PS 4WD Auto in Elegance trim (the R-Line no longer making sense due to the large amount of kit it now lacks versus the Elegance).
I ordered it 20th August. She told me that they dont give out order numbers because its a motability car. Dave G when did you order yours?
That’s a new one! The dealer is fobbing you off I’m afraid. I have always had the order number for every car I have ordered. The usual reason that a dealer won’t give an order number (not just BMW dealers) is because they haven’t actually ordered the car. VW dealers are particularly notorious for this. When you think you have placed your order with a dealer, it’s effectively just a note of what you want, not the actual order. Dealers of all brands have set allocations of each car type per ‘period’, which is either a month or a quarter. If they have used up their allocation they won’t tell you, as they don’t want you to go to another dealer that still has availability for that period. They will therefore accept your order but not let you know that they will sit on it for a month or longer until their next order slots open up. That’s why I always insist on an order tracking number, as they are only issued when the order has actually been placed with the manufacturer. Once you have one you know that the car has actually been ordered. 3 months would be extreme though, so I suspect your dealer is just being stupid (fingers crossed).
@RICHARD WAITES, yes I do understand the situation but what I don’t understand is why does the dealer give me a different story every time I call them and why have people who ordered their car after me received theirs a month ago. I am tolerant but what I won’t accept are lies and BS. As for BMW live chat, they were supposed to get back to me last week but heard nothing from them. I now see why people say Motability customers are bottom of the list with dealers. Never had any problems when I was a private customer.
I would feel exactly the same as you Elliot. I had the same when we ordered our current Tiguan. The VW dealer did nothing and left me to do all the chasing. All I can say is that the 3 Series will be a car well worth waiting for. I’ve had 4 or 5 of them over the years and they are great cars. The new one will be far better than the ones I had. I shall look forward to hearing about how you find it when it arrives. It’s top of my shortlist for when we change in Q1, but it will all depend on whether or not my wife can get in and out of it OK. If not, it’s another SUV and neither of us are convinced by the X1.
I agree with others that the quoted mpg figures are usually a joke – especially with ‘non conventional’ (hybrid etc) vehicles. Manufacturers quote ludicrous economy figures like 134mpg and yet if you read an independent review the real world figure might be something like 40mpg. Some difference! Not sure that I agree with the comment that it doesn’t matter about the mpg if the car is right for you though. I am fortunate that I have a very good income, so technically 10 or even 20 mpg either way shouldn’t make a big difference to my choice – but it does. Not so much for the running costs, but for the frequency of having to fill up – a job that I detest. Due to the combination of 10mpg worse fuel economy and a smaller fuel tank, our Motability Tiguan has a range of around 200 miles less than the BMW I had before. That means I have to fill up the VW 3 times for every 2 that I filled up the BMW. Two and a half years in to the car and that still irritates me ?
Can you make use of dealers car scrappage schemes when getting a motability car? For example at the moment Citroen are offering up to £5000 for your old car on there scrappage scheme, I’m thinking this would pay for the advance payment thanks
Hi Kirsty. Whilst scrappage schemes only apply to private purchases, if you are set on a Citroen and your private car is worth very little money (say a couple of grand or less) then it might well be worth you comparing the cost of a PCP with the costs of motability. Motability will cost you almost £10k in tax free benefits plus the AP. If you get £5k in part ex (say at least £3k more than the car is worth) then you have a chunky deposit (so no AP needed) and unless it’s a very expensive Citroen your monthly payments could be less than your sacrificed benefits. The car would have a 3 year warranty (so no worries there), road tax is a known figure and, depending on your mileage, you may not even need to replace any tyres during the 3 years. Most manufacturers offer servicing plans so your only variable is insurance. Running some checks on a comparison website will reveal all. Motability is obviously great for ‘peace of mind’ motoring but isn’t always the financial no brainer that many think it is – especially with cheaper cars.
Hi Glos Guy We have just ordered the KIA soul EV. I need something quite high up due to my back and her indoors the same so picking an EV was always going to be a challenge with most of them been lower cars so when that appeared it was a no brainer to us. We both like the quirky looks and the range is fantastic for the mileage we do every year we can probably get away with one or two charges a month which means we should recoup most of the AP back in the 3 years. The KIA dealer was really adamant it would not stay on the scheme for long as demand starts to gather pace very quickly and like its sister the E-Nero they are expecting really long delays for orders which is why the E-Nero will never appear on the scheme.
Sounds ideal for you Stuart. I hope that it all works out as planned. I would love to have an electric vehicle one day. We garage our car overnight, so charging at home isn’t an issue, but we occasionally do long trips and I couldn’t cope with ‘range anxiety’! Last year we did an epic 3,500 mile touring holiday all around Scotland, which we thoroughly enjoyed, and I don’t recall seeing a single charging point anywhere that we stayed. In fact, we even had ‘range anxiety’ one day worrying if we would even find a conventional petrol station in time. We were running on fumes for a nerve wracking period of time! When the infrastructure eventually catches up and charging technology means that you can recharge in the time it currently takes to refuel a petrol or diesel car (which, I am sure will happen eventually) then I’m in! For those who only do local driving and can charge at home then I can definitely see the attraction now.
Just speak to as many dealers as you can thats what i did. I eventually took the plunge and ordered but told the dealer as my collection date is Feb 8th if the AP drops in Jan i will be cancelling and re ordering and they were OK with that. Having said that a few dealers i spoke to were adamant the car would be coming off in Jan so i may have played a blinder if that happens. Either way until you enter your PIN nothing is written in stone anyway.
A very sensible approach Stuart. I see that you currently have the same car that we do. What are you replacing it with? Ours is due for renewal next quarter.
Four weeks ago the Society of Motor Manufacturers and Traders (SMMT) stated that if there were No Deal with the EU and the UK has to trade under WTO rules then the cost of imported cars from anywhere in the World, not just the EU – would rise by 10% (average price for ICE car currently £19k = extra £1,900; average price for e-cars £30,000 = extra £2,800). Tariffs of up to 22% would be placed on vans and lorries.
If we have to Trade under WTO rules then tariffs will be applied to vehicles not only imported from the EU but from anywhere in the World: “WTO rules state that the same trading terms must be applied to all WTO members, unless, for example, there is a trade agreement between 2 or more countries. This is known as Most Favoured Nation (MFN) treatment. MFN means that the UK cannot offer better trading terms to one country and not to WTO members, unless, for example, it has a trade agreement.” (Gov.UK website ‘Trading under WTO rules’) If they do come up with some kind of Deal then, obviously, we will apply those rules instead.
Hi Georgie. I don’t dispute the technicalities of the WTO rules but my point, which I may not have made clearly enough, was that even in that scenario I just don’t see a 10% rise being automatically applied to retail prices – for the reasons I stated. The car industry would be shooting itself in the foot when it is already walking with a severe limp! They have a hell of a lot of margin (several times more than any potential tariff) to play with and will be forced to do so to remain competitive. I think that ‘project fear’ is in full swing again, this time being peddled by the motor industry as they are desperate for a deal given that imports and exports are their life blood. I understand that, but I think we have to keep in mind that even if we trade on WTO terms from January (which is still an ‘if’), it doesn’t mean that we will be doing so for ever. Negotiations will continue and deals will be found – sooner rather then later, I predict. The U.K. is often painted by the media as the ‘victim’ who will be made to ‘suffer’ as a result of Brexit, but we export almost as many cars as we import, so it’s just as much in the E.U.’s interest as it is ours to have productive trade deals.
As I said in my last post, in so far as Motability is concerned, the impact on AP’s is less clear cut. I fear that all the evidence points to the fact that they are very poor negotiators when it comes to prices paid for cars. If we believe what we are told, they pay more for thousands of cars than a private individual can easily negotiate when buying one! If they are seen as a ‘soft touch’ (which I suspect they are) then there is a danger that manufacturers may choose to recoup some of the discounts that they have to throw at private customers in our direction. However, the same rules of supply and demand apply. They have cars to shift and Motability operations are a major customer. If AP’s on some cars become uncompetitive people will either shun them and choose cars where AP’s are more competitive or will leave the scheme and source a car privately. Running a Motability car isn’t always the ‘no brainer’ that so many people think it is. In fact, more people who are in receipt of higher rate mobility PIP don’t use the scheme than do. Almost £10k of sacrificed tax free benefits plus an AP payment is quite a price to pay for ‘peace of mind’. Hopefully, if there is a short term hit to prices, Motability Operations may throw a tiny bit of their obscene levels of reserves (which, let’s face it, have come about by charging more for AP’s than they needed to) to help soften the blow to disabled customers – but then again…..!
I think that Covid and Brexit are red herrings in so far as AP’s are concerned. I just don’t buy the suggestions that if we have a no deal Brexit cars will go up by 10% from January. It’s scaremongering. As always, supply and demand will prevail. With the whole world in turmoil, countries need to maintain their export levels and a way will be found to shore up their car industries. Even if tariffs do apply, car manufacturers have such huge margins they will find a way to absorb some or all of them. Once one does, the others will follow. All this bunkum that Motability and dealers shout about margins and how small they are is just that – bunkum. Motability only sell mainstream cars, not exotica. Just because they are rubbish negotiators doesn’t mean that there isn’t around 20-30% margin in almost every car they supply. I have bought (directly or indirectly for family) a number of new cars in recent years (various manufacturers) and the lowest discount I negotiated was 17%. Most were over 20%. And I am one person, not a major lease supplier buying thousands of cars. AP’s are a law to themselves though and don’t necessarily follow market trends. They go up and down massively quarter to quarter for no logical reason and always have done, including well before Covid and Brexit. I suspect that will continue! So, to answer the OP, I agree with the advice of others. If you are keen on a car and happy with the AP, I would order but under the condition that you can re-order in Q1. If the 2008 needs no options, there should be no need for a deposit, so if the dealer plays silly buggers you could just cancel the order, which you might want to do anyway if Q1 produces a better car from a different manufacturer.
Thanks for reply, Yes it was a mobility car and I was charged £60, live and learn.
I think the problem sometimes is that dealers & others are either unaware of the rules or can’t be bothered to seek the required authorisation from Motability, as there’s a short wait whilst they authorise it. Some of us have had this issue with AdBlue top ups. Motability pay for those, as they make it clear that the scheme covers ALL costs other than fuel and cleaning. Even a main VW dealer tried to charge me for an AdBlue top up once and got a bit funny with me when I insisted that I didn’t have to pay. I told them to speak to Motability and they came back 5 minutes later looking very shame faced!
I just had to return Seat Tarraco, following the loss of my wife. Due to logistical red tape they couldn’t swap the car from her PIP to my war pension. So i have had to go through the selection of cars for the second time this year. I decided to order the Kuga ST Line X AWD as per your list. I have added some extras, as I like my technology and gadgets. Hopefully here beginning January. Had a Superb 4×4 estate that was lovely, but just to low for me to get in and out comfortably now.
Hi HoneyMonster. I’m so sorry to hear about your loss. I suspect that you could have done without the aggro of changing cars as well as everything else that you have undoubtedly been dealing with. I shall very much look forward to hearing how you get on with the Kuga once you get it.
Glos Guy. Am from the same bad-joke Skoda generation as you. However, when I needed a car of the Superb type, I test drove everything in sight. Passats, Big Vauxhalls, already dismissed the Mondeo (had one. Useless). The Superb just stood out as miles better than any of them. Smooth as silk on the road. Pretty quick (with dieselgate or 2L petrol.) Comfy as a good living room, Space for everything. Pity Mrs Glos Guy is against them. Although, the models on scheme now seem pretty underpowered. Reckon. given your needs, the 3-series is best way to go. Renewed my Motability car in March this year. If the 3-series had been on list then, I’d have had it; no question. Choice came down to Alfa Giulia and Mini Cooper S. Couldn’t bear to watch the Alfa sitting virtually unused on the drive (don’t drive very far now) and went for Mini – the maddest shopping trolley ever.
Yes, if the car was just for me, of those available on the scheme at present it would be the 3 Series Touring. I’ve had 3 of them over the years (320d’s) and they were only bettered by my beloved 5 Series that I sold at the beginning of this year, as we no longer needed two cars given that we are now retired and my wife no longer drives. The sole issue will be whether or not my wife can get in and out of it OK. That’s why I’m so keen to hear from wheelchair users on how they find transferring to / from a normal car compared to an SUV. We will find out for ourselves when we go and look at the cars early next year, but I’m impatient!
Glos Guy. It may be worth looking at the Superb if space is an issue. I’ve had two; a Dieselgate 4×4 and a 230-ish bhp petrol 2wd. Both amazingly comfy and the petrol one was a fantastic drive. The VAG 2L petrol is a very good engine when putting out around 200bhp. Sadly the decent engines are not available now on the Skodas. So, if other issues allow, I reckon the 2L petrol Tiguan could be a very good choice. (Much as I dislike SUVs and their high-entry problems, I’d be well tempted if renewing now.)
Thanks Tharg. My wife has an absolute block over Skodas. We are of an age where their cars were so bad that they were the butt of jokes (e.g. what do you call a Skoda with a sunroof? Skip). I’ve explained that they are now excellent cars and effectively just slightly budget VW’s, but she doesn’t get it. That being said, she hates all French cars as well, but that’s just on principal ?. The Superb is indeed a great car. It’s cavernous and well equipped, but I’d want the SE-L with a 2.0 engine to even consider it and even then I would much rather have the much smaller BMW 3 Series Touring if something lower than an SUV is an option for us.
Surprised that I‘ve had so few answers to all my questions, given the number of very knowledgeable posters on this site, but many thanks to those who have posted so far. Keep them coming!
Had a new battery for 3 year old Skoda VRS £270, 4 years ago I had the same problem and had to pay, this time there was no charge (thank goodness). Does anyone know if this s the new policy.
Was it a Motability car Alan? If so, you shouldn’t have had to pay 4 years ago or now.
Recovery AA and RAC make commission on every battery they sell a customer so just be sure you actually need one
I‘m sure that you are right Azzy, but to be fair to the AA chap that came to me he said that if it were his car he wouldn’t change it now as it didn’t fail the charge retention test, it scored 50% (the battery is five and a half years old but the cars only done 22,000 miles from new). He also said that I might be able to get one cheaper elsewhere if and when we need one.
LOL. For every 10 people that are happy, theirs always one that just very simply, can’t be pleased. No one, not me, nor Motability is saying you CANNOT order a car. What they have done, however, for the DISABLED people who may indeed have Covid and WHO CAN’T get to a garage etc etc etc, very kindly extended their leases. This gives opportunity for those who may have lost their jobs, and who are struggling with AP’s to have more time. My point is, take advantage if you need too, because right now in my particular circumstances I can’t afford £3k but by next Feb I’ll have it. Please don’t reply with a lecture of a car for purpose or a car suitable for needs or a car shouldn’t be sporty etc Not interested in your negativity. As for your contract, perhaps have a read at the section which explains that they actually can indeed, basically, do what they want. In addition, read the bit that states, “out of our control”. Sometimes I just don’t know why I bother. Way to clicky this forum, way to clicky. So have a smoke of that! Pfft
Oh dear. A bit touchy aren’t we? The first line of your post was factually incorrect. You said that “your lease will be extended by a further 6 months due to lockdown 2”. That is not the case. You have the option to extend. That is very different (although the option to extend a lease has always existed). I’m pleased that the option to do that helps you. You will never find me telling anyone that they shouldn’t have the car that they want, so please don’t label me incorrectly.
Thanks again Keith. Even under the bright fluorescent lights of the showroom it still looks significantly darker than depicted in the marketing material. It looks OK but if the colour was as vibrant as in the VW photos it would look stunning.
Hi Glos Guy, good to see you back. I recently test drove the new Tiquan R-Line, want the Elegance but they didn’t have one available. I did post a short review with some pictures. The boot floor is very deep and I could see many people having trouble getting anything out let alone a wheelchair. If you want a level floor it’ll cost you £215 and comes with a spare wheel which then takes up all that space. Really poor design if you ask me. I was amazed at how much kit the R-Line had lost and would certainly chose the Elegance every time. The 1.5TSi engine had more than enough pull in my opinion and the ride was very comfortable, but I should imagine you’ll be looking towards the 2.0TSi as I remember your 5 series beamer. But definitely petrol if you’re only doing limited mileage now. Good luck in your search.
Thanks Markymate. I’ve read your review and it was excellent. Thanks for posting it. If it wasn’t for the wheelchair, I’d actually like the deeper boot, but having to lift the wheelchair up and out could be a problem. The only option I would have considered adding to an Elegance would have been the Harmon Karden sound system, but I was put off as it’s almost £1k as you have to have the spare wheel as well, but it sounds as though we might need the spare wheel anyway to get a flat load floor. We are probably around 10k miles a year now. I like diesels for the torque, but my wife is keen that we move to petrol next time and I’m hoping it will be a lot quieter than our current diesel Tiguan, which is very noisy compared to the sublime BMW diesels.
Thanks Keith. Yes, I’ve seen that YouTube clip. It’s a bit confusing as it constantly flicks between the R (in a colour not available on ‘normal’ models) and an R-Line in Nightshade Blue. I agree with you that it looks nothing like the colour as depicted in the brochures. Not even close. I’m not saying that it’s unpleasant – it could well be my choice if we go for another Tiguan – but I would much prefer the colour as depicted in the promotional literature, which is a much lighter and significantly more vibrant and metallic looking blue.
Glos guy, That indeed is a very nice colour, and your right the night shade blue looks nothing like it. I think the Elegance is definitely the one to go for, just the grey plastic trim ruins the look. There is a Dolphin Grey which would probably blend in best with that trim. Regards Farid
Hi Farid. Yes, grey looks best with the plastic trim, but we’ve had two grey ones (for that reason), a black one (never again) and a white R-Line, so I fancy a change. VW colour choice is rubbish but the Nightshade Blue looks fantastic in the brochures, but I fear less so in reality (from the photos I’ve seen).
- AuthorReplies