Motability versus buy a car?

don9999

I receive DLA for my daughter at the higher rate, which entitles me to a Motability car.

But...should I take it up, or buy a car privately and use the DLA payments towards that?

The motability is probably the 'easiest' route - they take the DLA, I get a car. They deal with all insurance, maintenance issues etc.

But, I'm starting to think that the private purchase option is actually cheaper in the long run.

I'd be looking at an MPV type vehicle, and hence the Advance Payment is around £2,000 - £3,000. Add in the £45 per week over three years, adds about another £7,000. Which means a total of about £10,000.

Now the new car price would be about £22k (Ford Galaxy or S-Max), but being a great moneysaver, I could purchase the same brand new car for approx. £19k. I could put a deposit of £3,000 (same as the Advance Payment on Motability) and finance the rest on credit card at 0% or 3.9%. I suspect that the car will be worth about £9k-£10k at the end.

So the options work out very similar, except that the purchase option does not tie me in to a 3 year deal. If I want to change after 1 or 2 years, then I could if I bought privately. Indeed, I've seend second hand cars on offer for more that I can buy a brand new car! Hence I 'might' be able to sell the car after say 1 year, with only a minimal loss!

Car Tax doesn't come into the equation, since this is provided through DLA whichever option I choose.

Breakdown is only a minor issue. Is free with Motability, but is only £39 per year via Autoaid (and since I already pay this for my second car, will effectively be free for this new car).

Insurance IS an issue. Is free with Motability, but will cost around £1,200 over the three years.

Have I missed anything else out?

As I see it, Motability is the hassle-free option, but the private purchase is the more flexible.

Has anyone else had a similar decision to make?

Cheers,
Don

Hapless_2

We got a mobility car, be aware that you can only use it for your daughter, you cannot use it to get to work etc. We can't wait until the 3 yrs is up. I would never do it again!

Hippychick

I have a motability car as I receive the higher rate of DLA and it has been a godsend, the worry is completely taken away as even replacement tyres windscreens etc are covered.

However as mentioned above it can only be used for the benefit of the DLA recipient which may limit you. Also 3k as an advance payment is a lot and I tend to view the advance payment as money lost so chose a vehicle with a very small advance payment.

If you bought your own car you would get some money back on resale this won't happen if you have a motability car. But with a private car you would have to pay for all repairs.

It all depends on what you value more either the stressfree experience motability provides or the freedom to sell or use the car for other purposes with a privately owned vehicle.

fryster2006

We also have a mobility car, for us it was the best option due to our credit history. It is certainly hassle free, but you are paying a lot for it in the long run

minimadtrix

Motability offer you the choice of buying or leasing.

My husband used to have a lease car, but that was very basic and with spinal injuries, he needed something more comfortable, so we decided to chop in my car as well and went a bit more 'executive' for the comfort.

We went to a car dealer, told them that we wanted to buy a car from them and that some of the payments made would be from Motability.

They were very helpful and sorted out all the paperwork with us. They valued my car and then got in contact with Motability to tell them what the outstanding balance was.

Now this is the best bit - Motability then organise an interest free loan for you. They pay the balance and then take your Motability money off you each month until it's paid off - because ours was quite an expensive car, it's over 4 years and at the end of that its ours, however, it could be anywhere between 2 and 5 years to pay it back, depending on the amount you want to spend on a car.

But this is the best bit, if you do happen to have some spare money and want to pay off the loan - you don't pay any interest. So, if the car's worth £4000 - that's all you'll pay, no interest. It's great.

The problem with leasing a car is that even the minutest scratch has to be repaired before you give it back and when you want to insure yourself in another car, you effectively have a zero no claims bonus, as Motability do not give you any bonuses, due to the fact that you normally have to claim on the insurance to get the car back in an 'as new' condition.

Hope this helps

donnalove

Hapless wrote: »

We got a mobility car, be aware that you can only use it for your daughter, you cannot use it to get to work etc. We can't wait until the 3 yrs is up. I would never do it again!

sorry this is wrong you can use the car, especially if it is a family car. I know 3 people that do.

TOBRUK

donnalove wrote: »

sorry this is wrong you can use the car, especially if it is a family car. I know 3 people that do.

Actually I have read this recently and there has been a lot of confusion over it that it has to be used just for the recepient. I'm sure that there was a thread ablout it not long ago, and someone who took the child (who was the recipient) to school was stating that it was ridiculous - it is written somewhere in rules but it is absolutely non workable!

People do use them but are unaware of the rule, or what has been said is the rule.

tiff

How does that rule actually work. My father in law is disabled and they have a motability car. My MIL works 2 nights a week at a nursing home, so drives there and returns in the morning.

Ted_Hutchinson

donnalove wrote: »

sorry this is wrong you can use the car, especially if it is a family car. I know 3 people that do.

Reference
No. No CRN/LCCA1

Date:
28 November 2006
Dear Mr Hutchinson
Thank you for your email concerning Conditions of Use for a Motability scheme vehicle and following on from our conversation please find below details concerning conditions of use and a PDF for the Terms and Conditions.
I would advise that one of the basic provisions of the C ontract- H ire Scheme is that a car should only be used for the benefit of the disabled person whose entitlement to H igher R ate Mobility Component of Disability Living Allowance (HRMC of DLA), makes them eligible for the Motability Scheme. This is because the C ontract- Hire Scheme receives additional Government help-exemption from VAT and Insurance Premium Tax - that is intended for the personal benefit of the disabled person.
In addition, permitted drivers who are spouses of the disabled person or parents/guardians of a disabled child may use the car for all purposes to benefit the disabled person and for the direct benefit of the disabled person's immediate household whether or not the disabled person is in the car.
If the disabled person is not in the car, other permitted drivers may only use the car for the direct benefit of the disabled person, for example to collect shopping or for taking an immediate member of the disabled person's family to school and so on.
They may not use the car for their own social, domestic or pleasure purposes. The car must not be lent or hired out to third parties or uninsured drivers and must only be driven by permitted drivers of the vehicle insurance policy.
In further clarifying the permitted use by spouses, parents/guardians and immediate family,Motability would define such relationships as spouses, children, foster children and only family members living within, or contributing to, the disabled person's household. The use of the car whilst the disabled person is not present does not extend for example to paying guests, lodgers, friends and close acquaintances.
I hope that this is of assistance. Please feel free to contact me on 020 7654 4159
or our Customer Services on 0845 456 4566 if you have any questions.
Yours sincerely
Kevin Radford Customer Contact Services

I have not heard of any change in policy since November.

saving-mad

We chose the option to keep the mobility money and buy our own car because as for many people DLA is not guarenteed long term so at least we have a car in the future if the DLA is turned down next time we apply also am i right in thinking you can only do so many miles before you pay milage when you give the car back - this may want adding into your sums.

good luck whatever you decide.

Ted_Hutchinson

I've left the text from the previous post stand on it's own. I am aware, like others here are, that the scheme is administered with a bit of a blind eye being turned to occassional abuse of the "use for disabled person's benefit only" rule. In the conversation I had with Kevin Radford the tone was far more lenient/flexible than it appears in the text he provided for online consumption. He also made it clear that should my partner have an accident while using the car for her own purpose (holiday abroad with daughter was the scenario offered, I hate long journeys so refuse to go) she would still be covered.

As the time I was reconsidering Motability (needed larger car to tow caravan) but with the Deposit (I have to have auto capable of towing 1.5ton) for a large family auto plus towbar it was going to be quite pricey and whilst I'm sure many people are happy to bend the rules I'd only do it if there was no other way. As it happens I found a good secondhand towcar and am glad I didn't go ahead. I think where you have to capital to negotiate a good deal with the supplier (and get VAT relief on an adapted vehicle and it's servicing and maybe a disability discount Vauxhall are quite generous) I think you can get a better deal on a new car yourself.

The last car I bought secondhand at a Motability Auction and over the life of the car with my dla being paid into ING I ended up, taking into account tires services, insurance, towbar interest lost on capital, in pocket. But it would be a different calculation if you didn't have the capital to hand for an outright purchase and were paying for a car loan.

At one time I compared Motability lease with a Macro lease and I wasn't convinced Motability was best but some benefit people again without a credit rating wouldnot have this option.

In my time posting on disability websites there have been reports of jealousy from other estate occupants. People who resent a disabled person having a free car for life, who key the new car, and each insurance claim apart from costing you £75 is added to your record and may disqualify you at renewal.

If you've nasty neighbours it may not be wise to advertise the fact you are on DLA MOBILITY and flaunt the new car under their noses. There are a lot of people here(on this site) apart from near you who think all benefit claimants are frauds and disability is often mainly in the mind. This is apart from the fact that cars are now much more reliable and a 3yr old car is likely still to be worth something after your kept it for 3yrs and saved all your dla for the next one, apart from the cost of the next deposit, new adaptions/towbar etc. I'm not sure everyone needs a new car and certainly looking at the mileages some people have done when their Motability Cars are sold at auction it seems some people spend 3yrs mobility DLA for less than 5000mls motoring. (and remember it's only the worst that end up at auction, the biggest bargains are snapped up by trade buyers from the Motability Trade Website (access to dealers only) People have to remember that the Charity side of Motability doesn't extend to the lease management, That is run for the benefit of the banks/garages and their best interests take priority over the disabled customers.
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