Volvo Cars & Motability

[jsh1988]

Originally Posted by Funky Diver

Set up by Government and pretty much in the main funded by the DWP, from Tax, from the Government.



This will probably offend, so I'll just say it like I see it. Luxury cars - XC60 SE Lux for example, shouldn't even be appearing on the list IMHO.

Why? The DWP funded £18M last year to the charitable income tune of £3M. I'm rounding up.

It cost an additional £9M to adminster this process, of which £1M was stumped up by the DWP. The rest came from manufacturers I presume, the annual reports are a bit wooly on this point.

Now I am not wholly against the concept of Motability, far from it.

I am however, against the extravagance of the system.

Why?

My next door neighbour is currently totling about in a brand new Tiguan. And yes, I do know how DLA works... he's managed to get the higher rate DLA assessment because he has nightmares. All well and good, the walking stick he uses sees day light Monday to Friday 8-5... beyond that... staggering home from the pub late on, he appears to be miraculously cured... and he's not the only one!

I once got moaned at for being unsympathetic on this forum because someone on Motability needed a certain type of car to tow their new caravan and it was no longer available. If you can afford a new caravan, why is the State funding a car?

Now I appreciate that my view point may be skewed slightly due to these "experiences"... however, they are not isolated and the fact remains. Mobility is an abused system with decadence to boot. If a Tiguan was so necessary, why isn't a Ford Ka? (designed from the outset for folks with impaired mobility by Ford) If the higher seat is required, what's wrong with a Peugeot Bipper?

The facts herein are in the Motability annual reports... here

I signed up to the site looking for advice regarding VIDA / DICE and stubbled across this thread.

I'm also a motability customer but would like to clear up some facts / misconceptions about the "charity". from the few posts I've read it seems most members are more accepting of people who do use motability when you compare against other forums..

I can see where people do get annoyed with it, but I would direct the blame at the company for "fiddling" corporation tax between a company and charity.

The cars are bought out right by a COMPANY called motability operations which is owned/backed by a number of banks.

For example, the vehicle I've just took out by Volvo configuration comes in at £46,000 (XC70 D5 SE Lux NAV + Winter Pack)

Rough calculation to show their profits, Motability buy the cars in bulk and get massive discounts, then claim back the VAT. I pay an advance payment (not refundable "deposit" - the same with any PCH purchase) then the monthly payments of ~£230 Which i would get paid personally should i not wish to use the scheme)

Price £32,000.00
VAT £6,400.00
Deposit £3,249.00
DLA £8,962.20

Balance £13,387.80

Resale £17,500.00
Based on an avg car of same specification 3 year old with 60k Mile..

Profit £4,112.20

take off admin costs for sale at auction etc for arguments sake its £2500-£3000 profit per vehicle, I've calculated this over the last 3 vehicles i've leased and its always worked out around the same when i've checked the sale price.

So its not the motability customers who are really benefiting its the banks/people who run motability.

The charity comes into play when they "donate" large amounts of the profit to motability the charity...its a big complicated mess of accounts.

People who opt for zero advance payment cars pay exactly the same over the three years, in some cases their payments cover the cost of the car so technically they could buy it out right over three years..

I think they should be more open about the costs and start operating like a normal leasing company.

</rant>