Buy or motability

sheeps68

Help has anyone done any sums as to buying a car or motability or even HP via motablity.

I'm looking at changing my car in relatively near future and want some figures to help me decide if to go motability or private purchase. I'm looking in the ideal world at Nissan Juke. I may have adjust my wish list but we are looking at the Polo, Juke, Jazz, yaris etc size range. The Juke has my attention as being a bit higher than the others.

Now I do qualify for motability and like the idea of everything being sorted for you. However I want some figures to make financial comparisions.

If I buy myself I'd be most likely looking for a nearly new or pre-registered car. I have full no claims insurance etc.

Of course at end of motability 3 years you have nothing but if you buy you do have a car but there are depreciation, servicing costs etc to take into consideration.

oldhand

you will already know of the cost to insure a car you bought yourself,add to that tax, servicing and repairs and it does seem to be a win win to take a car via motability.You get a new car insured for two drivers taxed and fully maintained and replaced after three years.It will cost you your HRM payment each month £200 I believe but you can get a very nice car suitable for your particular disability needs.Granted you never own the car outright but you also never have the hassle of laying out thousands of pounds up front to buy a car with the added expense of insurance(increasing each year) depreciation and repairs.

sheeps68

Tax is not an issue either way as get exemption. About to get a small inheritance so would either use it to pay towards car or put it in an account to ensure never left without car just in case they pull my DLA on me.And of course my current car has a small value. I know I have indeffinate award but we are heading towards PIP and there is always an uncertainty there.

My recent costs of servicing and repairs have high at 7 year old car so dont feel that is something I can use as comparision. also have no clue n how to work out depreciation.

oldhand

sheeps68 wrote: »

Tax is not an issue either way as get exemption. About to get a small inheritance so would either use it to pay towards car or put it in an account to ensure never left without car just in case they pull my DLA on me.And of course my current car has a small value. I know I have indeffinate award but we are heading towards PIP and there is always an uncertainty there.

My recent costs of servicing and repairs have high at 7 year old car so dont feel that is something I can use as comparision. also have no clue n how to work out depreciation.

People in the motoring section would know best but I do know if you buy a brand new car it depreciates at least 20% soon as you leave the showroom.Some cars obviously depreciate much faster than others,whatcar have a good section online about different makes and their values between new and 5 years old.(it makes depressing reading)

rogerblack

sheeps68 wrote: »

never left without car just in case they pull my DLA on me.

Speaking personally, I'd tend towards a small second hand reliable car, rather than motability, for this reason.
Something like a nissan micra in the ~2K bracket. While maintenance is expensive and insurance may be for some, I'd have to be extremely unlucky to get close to 8K in motoring costs in 3 years.
Depending on your circumstances - cost of insurance - ..., this may vary for you.


http://www.rightsnet.org.uk/forums/viewthread/2061/ contains a worrying report about the ending of the concessionary period that you could keep the car during an appeal against DLA.
The time taken to appeal has gone _way_ up - due to the extra caseload from ESA transistions.
https://forums.moneysavingexpert.com/discussion/3519855

It was 16 weeks in 2008, it's now 31 weeks. (this includes the time from when the decision is made to the time the DWP send it off to the tribunals service).

This doubling of time, with over half of appeals rejected means that motability is having to fund well over 500 pounds per appeal on average, so you can see why they might be unable to do this with their current funding.

robus

You will get just over £8000 HRM over the next 3 years.
Insurance for a car for a driver with no points is around £1500 over 3 years.
Servicing of a modern car is around £2400 over 3 years.

That leaves approx £4100.

I have a 5 year old BMW, owned from new having done 29,000 careful miles that is currently losing no more than £1000 a year in depreciation.

That will still leave me with just over £1000 in my pocket and I still own and drive my own car after 3 years.

Why pick a BMW over a Ford Mondeo?

Reasonable running costs
Reasonable insurance
Very low depreciation
If looked after, the quality of the vehicle will mean that it still looks and drives as new even if it is 15 years old.

sunnyone

robus wrote: »

You will get just over £8000 HRM over the next 3 years.
Insurance for a car for a driver with no points is around £1500 over 3 years.
Servicing of a modern car is around £2400 over 3 years.

That leaves approx £4100.

I have a 5 year old BMW, owned from new having done 29,000 careful miles that is currently losing no more than £1000 a year in depreciation.

That will still leave me with just over £1000 in my pocket and I still own and drive my own car after 3 years.

Why pick a BMW over a Ford Mondeo?

Reasonable running costs
Reasonable insurance
Very low depreciation
If looked after, the quality of the vehicle will mean that it still looks and drives as new even if it is 15 years old.

same old, same old andy, can trolls not learn and improve their game?

No old dogs, same tricks.

[Deleted User]

sunnyone wrote: »

same old, same old andy, can trolls not learn and improve their game?

No old dogs, same tricks.

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Chorlie

First car I ever had I bought (took a loan out) and had it nearly 3yrs, the next 3 cars were on Motability only real way I could afford a new car and insurance (being young) but after working for a few years being 10yrs older etc I did the maths and bought my last Motability car and run it for another 3yrs and it worked cheaper.

If you don't have to pay VAT on a new car (you're a wheelchair user & the car is adapted), have the funds to buy the car outright and the insurance isn't a stupid price for you, then if you select a low depreciating car it will be cheaper by a long way to buy it. However if you have to pay VAT, High Insurance, Need to have a loan (therefore interest to pay) and you select a car with higher depreciation than it might not be.

The only way is to decide on the car, workout the cost via Motability (The Allowance plus any advance payments / extras), then workout the cost of buying the same car (whether Ex Demo / Pre Reg or New) and include Insurance, Servicing, AA Membership, a set of Tyres etc and subtract what's it should be worth after 3 yrs and see if it's cheaper or not, if it is cheaper is it cheaper enough to really make a difference (After all Insurance my go up, you may get less after 3yrs etc)

There is no simple answer, it depends on several things....it's cheaper for me to buy a car, but if I was to buy an Astra or Focus I'd suspect Motability my be cheaper.

rogerblack

Chorlie wrote: »

and subtract what's it should be worth after 3 yrs and see if it's cheaper or not, if it is cheaper is it cheaper enough to really make a difference (After all Insurance my go up, you may get less after 3yrs etc)

Factoring in the percentage chance of losing the car, if you can't afford it during an appeal, or indeed if your appeal is unsuccessful.

It also depends on how willing you are to have a car without a warranty, if you actually require a new car, and your other income.

If you're on 30K/year, then the mobility component may be a help, but it's not really an essential.

If you're on IR ESA WRAG with a dependant partner, your choice is likely to be either go for motability as you have no savings, and could not consider a car, or save up the DLA for a few weeks, and get a second hand one. Of course, for some drivers, HRM is almost the same as what they'd pay for their insurance, which simplifies the sums somewhat!

robus

sunnyone wrote: »

same old, same old andy, can trolls not learn and improve their game?

No old dogs, same tricks.

That is the second time in two different threads that you have made the same or similar comment.

Please refrain from making comments on threads if all they are are wierd comments that have absolutely nothing to do with me.