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Motability Under Review

Posted in General News on Friday, February 9th, 2018

The National Audit Office (NAO) will be conducting a review into the Motability Scheme because of the recent media coverage. The Chairs of the DWP along with the Treasury Select Committees have also confirmed that a joint committee inquiry will be undertaken.  The main concern that was raised in the media coverage was Motability’s financial reserves of £2.4bn. The Motability Charity were keen to make it known that those reserves are not held by the charity and that they belong to Motability Operations Group plc (MOG), a separate company which is under contract from the charity to deliver the Motability Scheme to customers. MOG issued a statement saying: “Motability Operations Group plc (MOG) is a commercial company set up solely to deliver the Motability scheme on the ground, under contract to the Motability charity. MOG has grown over forty years to become one of the largest and most successful car leasing businesses in Europe. It is owned by a group of UK banks, who have supported the scheme since its inception. It does not have charitable status and does not receive government funding. Last year, MOG had revenues of £4.2bn and pre-tax profits of £258m, which was invested back into the business. The company’s reserves of £2.4bn are not held in cash but are entirely invested in its fleet of around 630,000 cars. This provides a capital base that protects the business against risk, notably in relation to price volatility in the used car market. Management is paid for performance, according to targets set by the Board and agreed with shareholders.”

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MR ROBIN SEARLE's Gravatar
MR ROBIN SEARLE

Saturday, February, 10th, 2018

With the sum of money revealed and the exorbitant salary of the CEO the clients could be rewarded for their loyalty. A charitable organisation shoul0d not be a get rich scheme for some when those who sign away their disability allowance often struggle to make good use of the vehicles due to costs of fuel. Clever accountancy may have created a transference of the reserves but this seems to be a question that needs openly investigating.

Mike's Gravatar
Mike

Thursday, February, 15th, 2018

I decided to give up motability after having 2 cars from them, and feeling totally ripped off. I then bought my current car ( Toyota) and 15 yrs later still have it, without the hassle of having to change hand controls every 3 yrs, Also I like to change my car tires before they get to the legal limit. I once had to argue with a garage, because I was about to drive to Europe, and I knew they were low, but the garage wasn’t allowed to change them because they were still just legal. As always it’s a great idea, but unfortunately the people at the top, squees the ones at the bottom.

Barry Smith's Gravatar
Barry Smith

Thursday, February, 15th, 2018

Now that is interesting. During my life I have had many cars some good , some bad, and the best cars I have had has been on the motorbility scheme, I feel very confident when driving my car knowing that if it doesnt start or that other thing like breaking down I know that the motorbility car will be sorted as I would be as well. That is why it is worth paying all your money to be on a scheme such as the motorbility. But I am now very worried as it would appear that th goverment is showing an interest , not in the scheme but in the money that they think it generates , they could be looking at taking it over yum , yum, more to stuff our oversease accounts. They are probably salvating at the near thought of all that money. I hope and trust that all the clever poeple that have anything to do with the Motorbility are going to keep a sharp eye out for any hanky panky.

Anthony Deaves's Gravatar
Anthony Deaves

Thursday, February, 15th, 2018

I lots my car in August 2016 because of PIPs, and regained it after going to court, I ent through Months of hell, and Mobitilty were't the good. the scheme need really sorting for the bettere and not for the banks who are major shreholder in Mobitility, it is suppose to be for the greater good but it is money, money money!

Ian Scoble's Gravatar
Ian Scoble

Thursday, February, 15th, 2018

What is even more shocking is the fact that the people who actually require special adapted drive from wheelchair vehicles are put under extreme scrutiny and are asked to pay ridiculous deposits that they can ill afford while Motatbility carry on paying money out to people (£2000) who have lost there DLA /PIP and have to hand back there vehicles, I'm not saying all the cases are valid, mistakes are made but in my view they should not be given £2000 further investigation should be taking place as if it was a fraud case. So it sit on this cash pile while the drive from wheelchair people are put under this pressure is I'm afraid just wrong its just wheezle accounting that has allowed them to continue with this. The whle organisation need to be investigated and get it back to doing the job it was first intended and not just a leasing company for non adapted cars I just wonder what percentage of cars actually do have any adpatations I'm sure its very low.

 Paul Robert Walker's Gravatar
Paul Robert Walker

Thursday, February, 15th, 2018

Whatever the rights & wrongs as noted in various quarters, since my life-threatening road traffic accident in 1986, & over 100 surgical procedures since then, I'd be totally lost & probably be confined to my home as I could NOT possibly afford the TOTAL running costs I get with Motability : the initial lease, all servicing, all glass & tyre replacements, insurance, tax, depreciation, MOTs - just add up ALL the real running costs of any vehicle and then ask yourself, could I afford a 'decent' car without the scheme - despite whatever it's rights or wrongs may be ? Paul R. Walker ☺️

Jon H's Gravatar
Jon H

Thursday, March, 1st, 2018

Re David Nixon’s comment David the reason that it cost more for a Automatic disabled car is that they do not get there money back at Auction because people do not like automatics hope this clarifies Jon

dawn 's Gravatar
dawn

Friday, March, 9th, 2018

I totally agree with David I need an automatic large SUV to accommodate my hoist for power chair and have to pay a very large deposit every 3 years. Ive been a recipient of motability cars for a number of vehicles now and have found that the deposits have increased greatly, particularly after the PIP reviews and the number of cars that had to be returned. It seems like those left on the scheme are having to pay larger deposits to cover losses of early returned vehicles? I have found that there don't seem to be the really good special offers on lower deposits that used to be published in the motability magazines, these all seem to be for smaller cars which are not suitable for my needs. I would also like to add that the motability customer service centre staff are the most helpful and understanding service, which seems to be rare these days.

Gerald Levy 's Gravatar
Gerald Levy

Thursday, February, 15th, 2018

I read with interest your report on the inquiry into Motorbility and it's reserves funds. I have to say I think this is a bit of a red herring as these reserves are not cash in the bank, but are rather the "book value" of the companies assets, I.e. the fleet of cars,buildings, paper clips etc. It seems to me that the more pressing concerns is the salaries of some senior staff in the company the Motorbility charity has set up to conduct it's business. The Charity Trustees should be very concerned that they have allowed the CEO of their company to get a salary of £1.5 million. It is the Trustees who have delegated not only the operation of the business to a third party, but also remuneration as well. As a customer of Motorbility I recognise they are effective at doing a good job on the ground, but in terms of the efficient use of the income, that is the question that needs investigation and clarification. As to whether I am qualified to make these observations, well I think so, I have a P.hD in management, I was Director of MBA programmes at a University and was a Director of a multi million pound organisation before retiring. I look forward to the outcome of the reviews, maybe? Gerald Levy (Dr)

David Nixon 's Gravatar
David Nixon

Thursday, February, 15th, 2018

My wife drives an automatic Motability car, the initial payment for automatic cars is much higher than manual cars I think that is unfair.

Pat C's Gravatar
Pat C

Thursday, February, 15th, 2018

Of course governance should be looked at, but the vast majority of people would not be able to renew their car every three years and have all the other costs covered, including travel through Europe, if it were not for the scheme. If Motability policies and procedures need amending it should be done , but I for one would be very disappointed if the scheme were to be dropped or significantly amended.