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Thread: Motability Operations Profits

  1. #11
    On the whichmobility forum, someone made the interesting point that, with 600,000, users and 2.4bn reserve, that is only £4,000, per user reserve.

    It was both sides that were wanting to have a good look at Motability, but the company 'Operations', that runs the business side of things. I believe it was J Mann MP, that was saying that operations were saying they had to cover the risks, with the reserve, but he was also saying that, the banks which were providing the loans for cars, were absorbing the risks. Thus, both operations and banks were making a profit, getting reserves from, tax payers. It was also in the debate that it is taxpayers money, that are providing the safety net for both, to cover any risk they faced from the scheme.

    But it also seems that the fear is that it will be used to change the scheme somehow, have PIP looked at again, ie activities and descriptors. But both sides saying they agree that the money and scheme are there for the people that need it. But does that mean as before, those that need it the most, like the change from 50 metre to 20 metre, for distance in moving around.

    But as they have the inflammatory media reports out, their investigation of the scheme. I would not be surprised if there was a consultation, with the public, disabled people and sheme users, as there has been with blue badges, now that a lot of people have seen the pay of the operations directors (much tutting in the houses of parliament, when pay was mentioned). But used for their own ends, not necessarily to help us, by restricting access to the scheme, not as was mentioned months ago, potentially opening to those on Standard Mobility component.

  2. #12
    I don't understand this: where's the taxpayer's money, where's the government help for the Motability scheme, in justifying the bad attitude toward the disabled people who take a Motability car ("the government is paying for your car", you know, most of our neighbors...). I see a very profitable activity financed with our own money... Is it "justified" only by the money we get thru DLA/PIP ? Because if that's the case than we have a problem bigger than Motability...
    Coming back to the profits, yes, the numbers seem a bit big, if we are talking about a charity meant to help with our mobility... they should try to lower the AP as many of them are quite high. And yes, a bit of competition should work wonders on Motability , their profits and wages.

  3. #13
    Quote Originally Posted by colin_21 View Post
    I don't understand this: where's the taxpayer's money, where's the government help for the Motability scheme, in justifying the bad attitude toward the disabled people who take a Motability car ("the government is paying for your car", you know, most of our neighbors...). I see a very profitable activity financed with our own money... Is it "justified" only by the money we get thru DLA/PIP ? Because if that's the case than we have a problem bigger than Motability...
    Coming back to the profits, yes, the numbers seem a bit big, if we are talking about a charity meant to help with our mobility... they should try to lower the AP as many of them are quite high. And yes, a bit of competition should work wonders on Motability , their profits and wages.
    I feel, competition may drive costs higher as several companies vie for the same slice of cake, each having its own departments and associated costs. Has competition in energy markets driven costs lower? Would we have the seamless transfer as we do now if we chose to go from Motability A to Motability B or C etc? I suspect when the final report comes it will vindicate Motability and say they are a well run organisation.

  4. #14
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    https://www.civilsociety.co.uk/news/...y-charity.html

    I found this earlier they said the 2.4bn is invested in the 630k cars on the scheme in that case why are 2.0 mpv still more or less same price they were 10 years ago?

  5. #15
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    Quote Originally Posted by fwipperie View Post
    I feel, competition may drive costs higher as several companies vie for the same slice of cake, each having its own departments and associated costs. Has competition in energy markets driven costs lower? Would we have the seamless transfer as we do now if we chose to go from Motability A to Motability B or C etc? I suspect when the final report comes it will vindicate Motability and say they are a well run organisation.
    I think competition would improve things as they are the biggest fleet operator in Europe and I think there would be seamless transfer I rarely get problems when I change energy suppliers and if they do have that much in reserve why is the prices not goin down and the chairman being paid so much!!

  6. #16
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    Quote Originally Posted by colin_21 View Post
    I don't understand this: where's the taxpayer's money, where's the government help for the Motability scheme, in justifying the bad attitude toward the disabled people who take a Motability car ("the government is paying for your car", you know, most of our neighbors...). I see a very profitable activity financed with our own money... Is it "justified" only by the money we get thru DLA/PIP ? Because if that's the case than we have a problem bigger than Motability...
    Coming back to the profits, yes, the numbers seem a bit big, if we are talking about a charity meant to help with our mobility... they should try to lower the AP as many of them are quite high. And yes, a bit of competition should work wonders on Motability , their profits and wages.
    I know where your coming from with that as I had my neighbour the other months pulled me aside and ask “ I hope you don’t mine me asking, but do you get your car for free” and I put him right that I paid £1,300 including the adaption’s and also pay fifty odd quid a week for it.

    Another thing Labour and Tory MP’s who are so up each other’s what sits trying to score brownie points at disabled persons expense is they don’t take into account the petrol and diesel we put in these cars of which 80% is fuel duty and VAT so the real truth is the tax payer is paying nothing for disabled people cars.

  7. #17
    I cannot understand what the problems is all about, mobility run a very efficient business, we would be complaint if it was run like Carillion or Capita to name a few, who only have their shareholders interest at heart.

    Now the company directors are being chastised for being successful, as far as I am concerned they deserve their bonus. They supply us all with some very nice car, no credit checks and adaptation all at a reasonable price. Were would you get a new car for £58.00 pw will full service and 20,000 miles a year No where.

  8. #18
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    Quote Originally Posted by Oscarmax View Post
    I cannot understand what the problems is all about, mobility run a very efficient business, we would be complaint if it was run like Carillion or Capita to name a few, who only have their shareholders interest at heart.

    Now the company directors are being chastised for being successful, as far as I am concerned they deserve their bonus. They supply us all with some very nice car, no credit checks and adaptation all at a reasonable price. Were would you get a new car for £58.00 pw will full service and 20,000 miles a year No where.
    They aren't though because if you need an automatic and say in my case a large ish mpv etc means a hefty deposit on top of the 58 a week which you have to find.
    Furthermore most cars are only serviced once in the 3 years at around 20k miles and motability get hefty vat free discount on these too as well as the initial purchase of the vehicles
    As for directors bonus earning those quoted saleries for me it's appalling and they should be lowered in my opinion and those savings as well as the hefty reserves fed back into the charity side or to bring the ap down.

  9. #19
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    Motability, Oxfam, .... Looks like it's charity investigation (bashing) time.

    Whenever the gov. start something like this in the press it's usually a sign that they are trying to sneak in something under the smokescreen.
    I'm intelligent enough to know that I don't know everything.
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  10. #20
    Quote Originally Posted by nukecad View Post
    Motability, Oxfam, .... Looks like it's charity investigation (bashing) time.

    Whenever the gov. start something like this in the press it's usually a sign that they are trying to sneak in something under the smokescreen.
    Some charities are very good, others a front for people to make lots of money. I think we should have an energy style rating for charities A-H, which shows how much donated money goes to the "front line". Some charity shops make a very modest donation to a charity and keep the remainder of the profits. As I have said, some are good and some not so. I feel Motability overall is good.

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