Motability vehicle written off and replaced - what are relevant consumer rules?

born_again

daffodil83 said:

I suppose Motability is making the claim on behalf of my partner? I think I'll have a look into the insurance policy and how it works as it seems that's the main route being suggested. No one has paid out yet and I assume it's Motability's costs that will be covered rather than ours as it's a lease hire. But will definitely ask for our costs to be reimbursed.

What people haven't mentioned though is the decreased discount applied by Motability to the new car - this is what caused the advanced payment to be so much higher. They must have changed their policy, which as other people have said they can just put prices up, but I firmly believe we don't have to just put up with this monopolised market dictating to disabled people, so I will still be complaining once the insurance is settled.

You are free to go elsewhere for a car. But will never get a lease deal as cheap as Motability with all that is provided.
So if anything disabled in this case get better lease deal. Ap on Motability is about the same as upfront payment on any lease.
AP will be related to the discount they get from the manufacture on the car purchase. Given the massive loss they made last year, Motability reported a pre-tax loss of £564.6 million for 2024.  £748m profits it recorded in 2023.
They have to balance the books.

You could source a pre reg or very low milage for under £20K (Autotrader)

Mildly_Miffed

daffodil83 said:

I suppose Motability is making the claim on behalf of my partner?

Well, yes, of course - they're the policyholder.

I assume it's Motability's costs that will be covered rather than ours

Well, yes, of course - it's their car that's been damaged

But will definitely ask for our costs to be reimbursed.

Well, yes, of course - your costs directly incurred by the collision are insurable and due for reimbursement.

What people haven't mentioned though is the decreased discount applied by Motability to the new car - this is what caused the advanced payment to be so much higher.

Costs surrounding a replacement car are NOT costs directly incurred by the collision.

Let's say you'd bought the car and insured it yourself.

If it had been your car, on a policy that included new-for-old cover within the first 12 months, you'd be covered.

If it had been your car, on a policy that included return-to-invoice cover within the first 12 months, you'd not be covered for price increases in the intervening period, but you'd have the full purchase price paid. This is basically where you are now.

If it had been your car, on a policy that just paid the market value even within the first 12 months, you'd be significantly worse off than you are now.

They must have changed their policy

Perhaps they have. Perhaps the manufacturer have reduced the discount they're willing to give.

but I firmly believe we don't have to just put up with this monopolised market dictating to disabled people

It isn't a monopoly in any way, shape, or form.

Think about how motability works. Really works, not the distorted tabloid lies...

Your wife qualifies for the enhanced mobility PIP or DLA.
She can then CHOOSE to keep that as cash, or to lease a fully maintained and insured car via motability with an advance payment.

If she kept the cash, she could obtain a car through any of the other thousands of vehicle financiers.

The fact they would not offer a deal in any way half as advantageous to her does not make motability a monopoly, just a no-brainer.

born_again

Maybe OP needs to revisit the EV's available.
There are many at far less AP.
Including the 2008.

daffodil83

poppy12345 said:

daffodil83 said:

easy said:

Do remember that your partner isn't 'Buying' the car.  It is leased from Motability. 
You need to talk to Motability's insurance about this  -  call them on 0300 037 3737.  
If your partner was not at fault then the insurer should recover the additional advance payment from the other party,  but it may take time.  Are you sure the claim has been finalised,  or is it still in progress?

Thank you this is a very good point. The claim has not been finalised unfortunately, we're just chasing them every week. We have 2 witness statements saying my partner was not at fault so we're hopeful it will come back favourably.

I'll definitely get the new advanced payment added to the claim, I'm not sure it was automatically included. 

Okell said:

I'm no insurance or Motability expert but I'd have thought that if your partner has suffered a financial loss stemming directly from a car accident where somebody else was at fault, then your partner should be claiming from the other party's insurance.  But whether the type of loss you describe is foreseeable and therefore claimable, I have no idea.

What were the facts that led up to the write off?  (ie details of the accident)

Did your partner claim on their insurance or did they go after the third party?

Who paid out?

I suppose Motability is making the claim on behalf of my partner? I think I'll have a look into the insurance policy and how it works as it seems that's the main route being suggested. No one has paid out yet and I assume it's Motability's costs that will be covered rather than ours as it's a lease hire. But will definitely ask for our costs to be reimbursed.

What people haven't mentioned though is the decreased discount applied by Motability to the new car - this is what caused the advanced payment to be so much higher. They must have changed their policy, which as other people have said they can just put prices up, but I firmly believe we don't have to just put up with this monopolised market dictating to disabled people, so I will still be complaining once the insurance is settled.

It sounds like you received the £750 new vehicle payment when you ordered the car that was written off. This payment was a one off and they then ended in January 2025. When this payment was given you had a choice to either take the payment or use it towards the AP, which sounds like what you did. 

The AP changes every 3 months and the most recent one was 1st October. When this happens the AP can decrease or increase. 

There is a good condition payment of £250 that is given at the end of a 3 year lease but you wouldn’t have qualified for that. 

Hi, we haven't had the new vehicle payment as this is not my partner's first car on the scheme, but thanks for your comment. 

poppy12345

daffodil83 said:

poppy12345 said:

daffodil83 said:

easy said:

Do remember that your partner isn't 'Buying' the car.  It is leased from Motability. 
You need to talk to Motability's insurance about this  -  call them on 0300 037 3737.  
If your partner was not at fault then the insurer should recover the additional advance payment from the other party,  but it may take time.  Are you sure the claim has been finalised,  or is it still in progress?

Thank you this is a very good point. The claim has not been finalised unfortunately, we're just chasing them every week. We have 2 witness statements saying my partner was not at fault so we're hopeful it will come back favourably.

I'll definitely get the new advanced payment added to the claim, I'm not sure it was automatically included. 

Okell said:

I'm no insurance or Motability expert but I'd have thought that if your partner has suffered a financial loss stemming directly from a car accident where somebody else was at fault, then your partner should be claiming from the other party's insurance.  But whether the type of loss you describe is foreseeable and therefore claimable, I have no idea.

What were the facts that led up to the write off?  (ie details of the accident)

Did your partner claim on their insurance or did they go after the third party?

Who paid out?

I suppose Motability is making the claim on behalf of my partner? I think I'll have a look into the insurance policy and how it works as it seems that's the main route being suggested. No one has paid out yet and I assume it's Motability's costs that will be covered rather than ours as it's a lease hire. But will definitely ask for our costs to be reimbursed.

What people haven't mentioned though is the decreased discount applied by Motability to the new car - this is what caused the advanced payment to be so much higher. They must have changed their policy, which as other people have said they can just put prices up, but I firmly believe we don't have to just put up with this monopolised market dictating to disabled people, so I will still be complaining once the insurance is settled.

It sounds like you received the £750 new vehicle payment when you ordered the car that was written off. This payment was a one off and they then ended in January 2025. When this payment was given you had a choice to either take the payment or use it towards the AP, which sounds like what you did. 

The AP changes every 3 months and the most recent one was 1st October. When this happens the AP can decrease or increase. 

There is a good condition payment of £250 that is given at the end of a 3 year lease but you wouldn’t have qualified for that. 

Hi, we haven't had the new vehicle payment as this is not my partner's first car on the scheme, but thanks for your comment. 

It didn’t matter if it wasn’t your first vehicle. If you placed an order for a vehicle on or before 3rd January 2025 then you would have still be eligible for the payment. As I advised this could have been used towards the AP and if doing this the payment would not have been paid to you. See link https://www.motability.co.uk/get-support/end-of-lease/cars-wavs/next-vehicle/new-vehicle-payment#eligible