Motability versus buy a car?

don9999

Thanks to everyone for their varying advice.

I'd heard the concerns about use of car, so I asked the specific question to the local motibility specialist. He advised me that the car should be for the 'benefit of the disabled person', but doid NOT mean that the disabled person had to be in the car. Hence, since it is my daughter that is disabled, I could (though I don't) use the car for travelling to/from work - since working and earning money for the household WAS for the benefit of the child. Likewise, shopping, or practically any journey made my members of the household family would be regarded as for the benefit of the child.

I'm still not sure I've heard of any persuading argument for/against a motability car. I 'could' put down an Advance Payment of £3,000 and lose the DLA monthly payments, losing a total of about £10,000 over three years. Or, I could put the £3,000 deposit on a private purchase, finance the remainder (at 0% for the first year on credit card, and then 3.9% for another year or two) and sell the car at the end of the three years. Net cost, again, close to £10,000.

Advantage of private purchase is flexibility - I could sell before/after the three years with no constraints. I would also not have any concerns about 'using vehicle for diables person'.

I don't 'think' the motability financing deal is a viable option. The deal is based on MRP, or close to it. But an individual can buy a car with 'at least' 10% discount for starters. For example, I've been offered an almost £6k discount on a brand new Ford Galaxy - which is a 23% discount!

Unfortunately I test drove the cars and much prefer the S-Max. However the price of the Galaxy is very tempting. Putting the motability option to the side, I am sorely tempted to buy the Galaxy and sell it after a year. I'm seeing second-hand Galaxies currently on sale for MORE than what I can buy a brand new one! Hence I reckon I could sell a one-year old for minimal (if any) loss.

Decisions, decisions.....

Cheers,
Don

Nilrem

We had a similar decision to make a few years ago (we'd been using motorbility for about 12 years), and whilst the motobility deal is pretty good it's fairly expensive in the end.

Our decision was finally made by a combination of factors.
1: Total cost over the predicted lifespan of the car - i don't think it's unrealistic to expect a modern car to be relatively trouble free for 5 years (at least the first 3 years are probably going to be fully covered by warrantee, bar brake pads etc which are fairly cheap).
2: Long term security - with DLA as it is at the moment it's a lottery as to whether you are going to get it renewed trouble free. We had to return one 4 month old motorbility car when my mothers "indefinite" DLA got reviewed and some chimp* decided she could walk fine.
3: How much mileage it's going to do - we only do about 4-5k miles a year.

We did some maths and worked out, like you that 3 years motorbility was going to be about 6.5k + any deposit, after which we wouldn't have anything to show.
We then worked out we could get a new car suitable for us, from a local dealer (our previous dealer had moved out of town), for about £7k on the road.
It would then cost about £1k insurance for the first year (youngish main driver with 0 no claims), dropping in years 2, and 3 and about £200 a year maintenance, and from that that it would break even in about year 4.

As it is we're now in year 4 with the car and it's pretty much paid for itself compared to a motorbility one (technically it's paid for itself now - it's still worth around 2.5k;) ).

Obviously in your case as you're looking at a bigger/more expensive car the sums are going to be different, but if you can keep the car running for about 5-6 years (what warrantee does it have?), it could work out better for you.

Remember, if you are disabled you can get the car tax free regardless of if it's motorbility or not (which saves £150+ a year)




*I would use stronger language, but chimp is the politest term to describe someone who believes a woman with multiple failed hip replacements can walk fine (and ignores evidence from GP, consultant, and physio etc).

Morglin

I always use the Motability scheme - it takes all the worry out of having a car.

If you don't make any claim on the insurance during the term of the lease, there is a £200 "bonus" payable at the end - which helps towards the deposit for the next one (assuming a deposit is payable).

I'd never purchase a car in the normal way now.

Lin

christabell

I too get DLA Motobility Higher Rate, however I only get it awarded to me for two years at a time and this does not allow me to get the car deal as you need to be awarded it for three years for that.

Zara33

christabell wrote: »

I too get DLA Motobility Higher Rate, however I only get it awarded to me for two years at a time and this does not allow me to get the car deal as you need to be awarded it for three years for that.

Incorrect you now only need a year to qualify for a car.

don9999

I guess it's 'horses for courses'.....

Depends what you want. If you want complete hassle-free motoring, or are young (and hence insurance is expensive), then go for the motability option.

If you drive little, or don't have high-rate DLA for >1 year, or want added flexibility, then go for private purchase.

DLA is approx. £45 per week, so over 3 years = £7,020. Top of the range Galaxy has an Advance Payment of £4,350, means a cost of £11,370 (ignoring insurance) - making it approx. £3,800 per year.

As a committed moneysavingexpert, I'm happy to jump through hoops as necessary for the best financial deal. Hence I'm sorely tempted to buy a new car through private purchase and even consider swapping it for another new car after a single year!

Sounds daft? But if I can get a £5,600 discount on the list price of a Galaxy, I might be able to sell it after a year with minimal loss. Even if I DID lose money, I would have lost £3,800 per year anyway, and I don't think I'll lose that much on a sale.

Even ignoring motability, this buy and sell after a year is an option for anyone!

(Anyone got any ideas how much a top-of-the-range £24k For Galaxy would be worth after one year, two years, or three years? I've seen estimates after 3 years, that it will be worth 42% of original cost...)

Cheers,
Don

Morglin

Motability do offer you the chance to purchase your ex-lease car after the term, at a preferential rate.

Lin

N71

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!

Thats rubbish! We've had a mobility car for 6 years for my son. I was told by mobility that it can be used for anything that benefits my son. That includes me going to work (my wage benefits him), going shopping (the food benefits him) etc etc! Obviously, if he's not with me, then I don't use the blue badge (before anyone suggests it!)

TOBRUK

don9999 wrote: »

I guess it's 'horses for courses'.....

Depends what you want. If you want complete hassle-free motoring, or are young (and hence insurance is expensive), then go for the motability option.

If you drive little, or don't have high-rate DLA for >1 year, or want added flexibility, then go for private purchase.

DLA is approx. £45 per week, so over 3 years = £7,020. Top of the range Galaxy has an Advance Payment of £4,350, means a cost of £11,370 (ignoring insurance) - making it approx. £3,800 per year.

As a committed moneysavingexpert, I'm happy to jump through hoops as necessary for the best financial deal. Hence I'm sorely tempted to buy a new car through private purchase and even consider swapping it for another new car after a single year!

Sounds daft? But if I can get a £5,600 discount on the list price of a Galaxy, I might be able to sell it after a year with minimal loss. Even if I DID lose money, I would have lost £3,800 per year anyway, and I don't think I'll lose that much on a sale.

Even ignoring motability, this buy and sell after a year is an option for anyone!

(Anyone got any ideas how much a top-of-the-range £24k For Galaxy would be worth after one year, two years, or three years? I've seen estimates after 3 years, that it will be worth 42% of original cost...)

Cheers,
Don

Obviously as you are looking at a specific car and you want a new car you have to weigh up what is best in terms of going with mobility or purchasing.

I had bought a car and had it modified a while before I thought of applying for DLA, silly I know but I didn't think I was disabled enough to qualify for any benefit! However, I am glad that I bought a car before I was awarded DLA as perhaps I would have been tempted to go for mobility, for the reason being that I own the car and now even if I wanted to buy another car I would always go for second hand and pay for it - I wouldn't be happy in forking out for a brand new car, I would rather spend the money on petrol etc, but hey, that's me!;)

N71

don9999 wrote: »

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.

I've just ordered my third mobility vehicle - I like the hassle free aspect of it.

We've orderd a new Citreon C4 7 seat grand picasso - and it was only from £795 advance payment. (We've gone for the diesel which was £895).
Its by far the cheapest 7 seater - and was voted the best MPV by Which? recently.