to buy or not to buy?

rubyed

Hi all,newbie here hoping for some help,My father currently has a motability car and it is due to go back at the end of march.
we are trying to work out if he would be better to buy his next car through the motability purchase scheme rather than taking it for the 3 years.His current car vw golf would only cost him 390 insurance a year and free tax.Has anyone purchased their car from a motability dealer rather than hired it for the 3 years and would you recommend it?
Also if anything where to happen my father could my mother take on the rest of the finance obviously not through dla as she has no disabilities,or do they just end the finance deal even though he may have paid most of the car off.
Sorry for long post but all help greatly appreciated and thank you for your time.

Hammyman

On the motability scheme you get a car that has everything paid for. There are no servicing costs, no MOT, no insurance costs, no breakdown cover costs, no repair bills, no cost for replacement tyres, nothing other than putting fuel in - all for £140 a month or whatever it is now. It is the deal of the century . If you buy one you have to pay for tyres, servicing, repairs, breakdown cover, insurance and you take a massive hit on the depreciation which will be more than £140 a month alone.

Flyboy152

rubyed wrote: »

Hi all,newbie here hoping for some help,My father currently has a motability car and it is due to go back at the end of march.
we are trying to work out if he would be better to buy his next car through the motability purchase scheme rather than taking it for the 3 years.His current car vw golf would only cost him 390 insurance a year and free tax.Has anyone purchased their car from a motability dealer rather than hired it for the 3 years and would you recommend it?
Also if anything where to happen my father could my mother take on the rest of the finance obviously not through dla as she has no disabilities,or do they just end the finance deal even though he may have paid most of the car off.
Sorry for long post but all help greatly appreciated and thank you for your time.

The most he can borrow is £10,750 and that is over five and a half years. Then there are the insurance and servicing costs over those five and a half years. If, for any reason, his mobility component, or his DLA, gets cancelled, he will have to stump up the two hundred pounds a month himself.

If something does happen to him, the finance wil have to be settled. There are different rules relating to debts in death, but the finance company will put in a claim to the estate and if there is any money, they will have to be paid. If your mother wants to keep the car, she will have to get a new loan to pay it off and be at the mercy of retail rates. Talking of rates, Motability's rates are not very competitive, I think their current rate is 7.9% APR, worse if you borrow less for shorter periods.