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Thread: Motability expensive?

  1. #1

    Motability expensive?

    Let me start firstly with this is a discussion, I'm not trying to convince anyone of anything, I'm trying to lay down the numbers in hope someone will point out what I'm missing.
    I am a current customer of Motability, it is my second car with them. At the time I took the first one my DLA mobility component was about £54 (if I remember correctly). I though well, its about £200 per month, right? it includes insurance, warranty, services, so it makes sense to go with them. Now after 2 cars with them I notice DLA has increased to £61, which multiplied by 54 weeks is almost £3,300 per year. (Yes, notice how I round up or down, depending on how I felt at the time...). So in effect I pay almost £10,000 over 3 years, not including the hefty advanced payment I need for my disability related needs - big car, automatic gearbox.
    That's one thing (and I am trying hard to ignore that huuuge amount of reserve Motability has at the moment, let's keep the discussion to our needs and cost and not someone else's greed. Another point I'm trying to ignore is that thought that Motability is payed by taxpayer's money... - yes, I am a tax payer, and I also pay £10,000 to motability).
    Back to the point. I used all the miles I was allowed on both cars (I expect to use all of them on my second car). That's 60.000 miles, at a reasonable (?) average of 40 miles per gallon that means another £9,200. Ouch ! I just never run the numbers like that and I suspect it will be a surprise for more people in similar situations.
    £19,000 for transport needs over 3 years? Yes, 60,000 miles is more than the regular Motability customer needs. But that only comes to showcase that the user who doesn't use all the 60,000 miles is paying the same £10,000 + AP as me, leaving even more value to Motability to sell at the end of the 3 year lease.
    So... electric next time? Or at least hybrid? It will greatly reduce the £9,000 in fuel costs, but it will still be over £14,000 in total I think. I'm not even considering any Brexit effect on these numbers.
    Second hand? only if you know a good mechanic I think...
    Was this amount significantly smaller in the past? 10 years ago the numbers would have been £8,900+£6,800 = £15,700. Anybody wants to give it a go for the 20 years ago case (I cant find the rates for DLA for 1999)?

  2. #2
    Senior Member nukecad's Avatar
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    Yes motoring is expensive.

    With Motability you are leasing the vehicle, from Motability Operations Ltd.
    Everybody pays the same maximum monthly lease fee. (Higher spec. vehicles have an advance payment rather than costing more per month).
    Some do pay less, there are about 150 vehicles at less than the mobility component of DLA/PIP.

    There are also 'charitable' grants, from Motability Tenth Aniversary Trust, to pay for any special adaptations needed (or possibly to pay the AP).
    https://www.motability.org.uk/grants...ritable-grant/

    So for a direct comparison the closest would be a dealers standard lease agreement for the same vehicle, which wouldn't have any adaptations.

    You could also look at the cost of purchasing the vehicle outright (again without adaptations, you'll have to buy those seperately and pay for fitting them).
    Add the annual running costs, insurance, fuel, etc. https://www.rias.co.uk/news-and-guid...running-a-car/
    Of course you would have to have the money for that, or factor the interest on any loan that you could get (if you could get one).
    Remember that you'll get some of the initial cost back if/when you come to sell it.

    No one is forcing you to get a vehicle from Motability, it's your choice. If you can make the numbers add up for you get one elsewhere.
    Some do go the private lease or ownership route rather than use the Motability scheme.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

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  3. #3
    I was just surprised by the numbers, I am not saying I am forced to go with Motability, as a matter of fact there are extremely small chances I'll go with them at the end of this contract. Also I wanted to point out something that not everybody is doing, I didn't do it properly before. My options didn't include the buying a new car, although when running the numbers on that option we should remember the 0% VAT for an adapted car. Yes, the adaptations are expensive, that's another thing to consider...
    I wasn't looking for a direct comparison, I am looking into reasonable price for transport...
    Motoring is expensive. Should it be? Or better: should it be for us disabled drivers? I am not cruising thru Europe, I am trying to make a living, commuting to work, going shopping, taking my kids to school, having an active life. I would be more than happy to do most of those activities by walking if I had the choice...

  4. #4
    Senior Member Lighttouch's Avatar
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    I've only recently changed from running my own car to leasing a Motability lease hire car.

    I had to get a 7 seater vehicle as it was the only type that could accommodate my wheelchair. I had to pay £2,000 for rhe deposit but saved the same amount by getting Motability to install adaptations to suit my needs. Many adaptations are a fraction of the real price if ordered at the same time as your car.

    So why choose Motability
    - worry free motoring
    - insurance paid
    - road tax paid
    - free breakdown cover
    - subsidised adaptations
    - after three years they give you money back
    - you max out the mileage per annum
    - it's about one third cheaper to hire through motability
    - you could get your advance payment paid for by Access to Work

    What's not to like about the offer!

  5. #5
    Senior Member nukecad's Avatar
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    I thought I'd try a quick comparison.

    The OP said large car, automatic.
    So let's look at a Skoda Octavia 1.0 TSI SE Estate 5dr. (Petrol, automatic).

    On Motability it's all your PIP mobility allowance £265.20 /month in 2019/2020, with a £145 AP.
    https://www.motability.co.uk/cars-sc...Row=1&EndRow=9

    Cheapest I could find with a quick look for a 3 year personal lease with 20,000 mpa and no AP was £243.48 /month.
    (You could try a lower mpa, or a larger upfront payment, to get the monthly fee down. But I used the Motability figures to make it as fair as possible).
    Insurance, servicing, and breakdown cover, would all be extra.
    EDIT - That's a manual gearbox, my mistake, link removed. There's an auto gearbox in this post at £395 /month but it's only 10,000 mpa.

    Or you could buy it for the manufacturers price of £22,070 OTR.
    Last edited by nukecad; 02-14-2019 at 02:28 PM.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  6. #6
    Quote Originally Posted by Lighttouch View Post
    What's not to like about the offer!
    The total price...
    I dont have all the answers to your points, I will try to run thru them...

    So why choose Motability
    1. Worry free motoring
    2. Insurance paid
    3. Road tax paid
    4. Free breakdown cover
    5. Subsidised adaptations
    6. After three years they give you money back
    7. You max out the mileage per annum
    8. It's about one third cheaper to hire through motability
    9. You could get your advance payment paid for by Access to Work
    1. Spot on. Was the main reason to go with them in the first place. There's a price tag to go with that...
    2. You're right. Insurance at the moment would be about £400-£600 per year, just to keep in mind.
    3. Road tax. Are we paying road tax as disabled drivers?
    4. Is that about £50 per year? I think you can get it as included with the comprehensive insurance or some banks offer some kind of options for that.
    5. Subsides adaptations - spot on, nothing to add here. The adaptations are crazy priced and Motability are able to pay for them at much lower prices than we could possibly get as independent customers.
    6. What money back? Its just the good condition bonus I think, dont leave it like that, some might understand they get the whole AP back... GCB was £250 last time I checked, somebody on this forum said it is £500 now?
    7. Not sure what to add here. Maybe that you dont really have a limit with your own car?
    8. I get a feeling you are right, it is cheaper to go with motability when compared with other options, I would like to see the source of that fraction as I am sure there are competitors that come closer that that.
    9. Last time I checked it wasnt that simple. I am not 100% sure of this but I think they would pay the cheapest AP available, limiting your choices I think.

    To be honest, you missed included services, windscreen and tyres for the 3 years...

  7. #7
    Quote Originally Posted by nukecad View Post
    I thought I'd try a quick comparison.

    The OP said large car, automatic.
    So let's look at a Skoda Octavia 1.0 TSI SE Estate 5dr. (Petrol, automatic).

    On Motability it's all your PIP mobility allowance £265.20 /month in 2019/2020, with a £145 AP.
    https://www.motability.co.uk/cars-sc...Row=1&EndRow=9

    Cheapest I could find with a quick look for a 3 year personal lease with 20,000 mpa and no AP was £243.48 /month.
    (You could try a lower mpa, or a larger upfront payment, to get the monthly fee down. But I used the Motability figures to make it as fair as possible).
    Insurance, servicing, and breakdown cover, would all be extra.
    https://www.leasehub.co.uk/skoda/oct...technology-5dr
    You'll need to change the mpa, lease term, etc. to get the comparison figure I did.

    Or you could buy it for the manufacturers price of £22,070 OTR.

    Good example and I'll keep it in mind... just wondering, do you own the car after the 3 years period? From the website you quoted I think not...
    (Just to make your point, the £246 is for the manual version, automatic I reckon would be more...) (Again, that figure of £22,070 OTR probably includes VAT)
    Unfortunately this skoda is still a bit too small for me and my wheelchair. At the moment I will personally go for a second hand car, I might go back on the scheme in the future after I will see the numbers for my second hand option...

  8. #8
    I guess my conclusion is motoring is expensive, as it was stated here. There's no sense in trying comparisons with other new car options, as Motability is still the best choice (I think?). Probably I cant afford the price tag for a new car, and I should have run the numbers more thoroughly - it is a good exercise for all of us to see the whole picture - £10,000 + £9,000 + hefty AP of around £2000 for 3 years of motoring, rather than ooh, its your whole mobility component plus the gas you use...

  9. #9
    Senior Member nukecad's Avatar
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    Quote Originally Posted by colin_21 View Post
    Good example and I'll keep it in mind... just wondering, do you own the car after the 3 years period? From the website you quoted I think not...
    (Just to make your point, the £246 is for the manual version, automatic I reckon would be more...) (Again, that figure of £22,070 OTR probably includes VAT)
    Unfortunately this skoda is still a bit too small for me and my wheelchair. At the moment I will personally go for a second hand car, I might go back on the scheme in the future after I will see the numbers for my second hand option...
    It's a lease agreement so it's their car and you hand it back at the end, same as with Motability.

    Oops, you're right that was the manual gearbox, it must have changed it when I changed the webpage.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

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  10. #10
    Also to be fair, I expect that company to be more difficult in dealing with when it comes to the condition of the car at the end of the contract. They will look for any reason to make you pay more, Motability will be more understanding, especially when it comes to disability related scratches or similar stuff...

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