Curiosity Motability question

jetta_wales

When the 3 year lease is up what sort of price do they offer to sell you the car for? Compared to the actual value of the car and what you could buy one the same for with a dealer.

I've heard some say they offer a really low price and others say they won't even go as low as book price.

One guy we spoke to in a dealership said he used to work with Range Rover and they'd have people putting £20k advanced payments down as they'd get offered the car for about £20k after 3 years so have then spent £40k (plus DLA but just the insurance alone can eat a chunk of that on a brand new range rover) for a £60k car.

So really have no idea what to expect in 3 years time but would like if possible to buy the car for 10 months and then sell it and use the scheme again as my partner would be over 25 and not restricted by insurance group.

Do they maybe give better value prices on more expensive cars because they have paid a very large chunk less on their original purchase of the vehicle by not paying VAT on it?

Any theories or experiences would be welcomed.

sunnyone

jetta_wales wrote: »

When the 3 year lease is up what sort of price do they offer to sell you the car for? Compared to the actual value of the car and what you could buy one the same for with a dealer.

I've heard some say they offer a really low price and others say they won't even go as low as book price.

One guy we spoke to in a dealership said he used to work with Range Rover and they'd have people putting £20k advanced payments down as they'd get offered the car for about £20k after 3 years so have then spent £40k (plus DLA but just the insurance alone can eat a chunk of that on a brand new range rover) for a £60k car.

So really have no idea what to expect in 3 years time but would like if possible to buy the car for 10 months and then sell it and use the scheme again as my partner would be over 25 and not restricted by insurance group.

Do they maybe give better value prices on more expensive cars because they have paid a very large chunk less on their original purchase of the vehicle by not paying VAT on it?

Any theories or experiences would be welcomed.

They quote daft prices to buy the cars which is why so few people take it up but you can try and follow the car to auction and buy it cheaper their.

Motability cars are not VAT free because thats only available to wheelchair users and strecher patients who need perminant adaptions done to the vehicle prior to delivery, thats why you pay VAT on optional extras even if you are a wheelchair/stretcher user, I have had one motability car and I have bought the rest new with 0% rated VAT which lasts for the time I keep the vehicle so that all servicing, tyres etc. are also 0% rated for VAT, if you buy a second hand car from someone entitled to 0% VAT and you are also entitled to it you can still claim it as I have done for my new Paravan.

Your theories about motability are far from what really goes on!

jetta_wales

I can only go on what various dealers have told me though they seem to have been quite contradictory thus far hence trying to get some idea from people here as to what sort of prices they were offered when ending their leases.

jetta_wales

From what I can gather they do not pay VAT on the vehicles they purchase.


Motability is a charity that provides vehicles and powered wheelchairs to disabled people. You don't have to pay VAT when you lease a vehicle or wheelchair under the Motability Scheme.

But it's hard to find much information to further confirm that. But anyway just trying to get an idea of what prices people have been offered in the past. We might just buy privately for that period if it is better value for us to do so without being too much out of pocket.

sunnyone

jetta_wales wrote: »

From what I can gather they do not pay VAT on the vehicles they purchase.


Motability is a charity that provides vehicles and powered wheelchairs to disabled people. You don't have to pay VAT when you lease a vehicle or wheelchair under the Motability Scheme.

But it's hard to find much information to further confirm that. But anyway just trying to get an idea of what prices people have been offered in the past. We might just buy privately for that period if it is better value for us to do so without being too much out of pocket.

Your wrong again, Motability is a company with a charitable arm that offers means tested grants towards deposits and driving lesson for the under 25's who are awarded HRMC etc.

You do pay VAT on Motability cars, I did on £3k for heated leather seats and to get the top of the range car etc. which you dont do when you buy a car as a wheelchair/stretcher user (there are other criteria to fullfil too) no matter what you want to buy, I have bought new Mercs and Chrysler Grand voyagers with every toy you can get on them and every single thing was zero rated for VAT.

jetta_wales

Maybe it was unclear by not highlighting the quote but the centre paragraph was a quote from a disability web site that are also a Motability partner. Motability is both a not for profit company and a registered charity as different bodies.

Do you actually have any information on prices offered at the end of leases to contribute to the query?

sunnyone

jetta_wales wrote: »

Maybe it was unclear by not highlighting the quote but the centre paragraph was a quote from a disability web site that are also a Motability partner. Motability is both a not for profit company and a registered charity as different bodies.

Do you actually have any information on prices offered at the end of leases to contribute to the query?

I already answered that, they are very expensive which is why so few people take up the chance to buy the car they leased, the best stock is taken by dealers and the rest go to auction where you can sometimes get a bargain, the auctions are easy to find and I have known people follow the car to auction to buy it.

jetta_wales

Can anybody else remember what sort of offer they had for their car when the lease was up please?

Trying to get some kind of picture because with Sunnyone that makes about 3 people I've spoken to about it so 2 saying high prices and one saying comparativly low if it's a higher end vehicle.

Richie-from-the-Boro

jetta_wales wrote: »

Can anybody else remember what sort of offer they had for their car when the lease was up please?

Trying to get some kind of picture because with Sunnyone that makes about 3 people I've spoken to about it so 2 saying high prices and one saying comparativly low if it's a higher end vehicle.

- you used to be able to trade in your existing privately-owned car agaist any advance.
- this is the portal that sells ex Motability

The way it works is :

- the dealers you get your motab from gets the first chance to buy
- - and then they get a chance to buy others through the portal on a “buy now” provision
- - if the options are not taken up after a specified time [ below dealer quality standards etc ]
- the unwanted ones are sold elsewhere to big dealers who are not Motability franchised dealers such as Tesco
- if they are still not wanted they go to the block

bribri_2

My 3 year old VW touran has just come to end of its lease and motability wanted the book price for the car - about £10,000.

Parkers show the original price as 18000. a dealer at 11,500 and private good quality at 10,500.

For average mileage of £30000.

The process was ring them with between 4 and 10 weeks (I think) to end of lease - give them exact mileage and they come up with a quote. Not based on condition.

pstuart

mrsmsport wrote: »

I'm considering buying my Dads car at the end of his lease next month. It's a BMW X3, 2.0 SE x-drive with 30k miles. To buy from a BMW forecourt is £19k. Motability want £16k. I get one years warranty aswell. Good price. I know the car. Can't beat it really??

This is a fair price and goes against the current forum thoughts
on buying from the charity which is Motabilty