Price Comparison

This following table shows that whereas the Mobility Scheme may be more cost affective in the short term, over a longer period the advantage can swing towards outright purchase.

Example:-

As of June 2011            

MODEL:

   

KIA RED LABEL 3 AUTOMATIC

   
5 year period
 

Motability

     

Outright Purchase

                 

Advance payment

 

£17,351

 

Purchase Value

 

£34,779

Allowance £51.40 x 52 x 5

£13,364

 

 

 

 

 

Insurance

5 x £500

 

Inc

 

Insurance

5 x £500   Estimated

£2,500

Servicing costs 5 x £250

Inc

 

Servicing costs 5 x £250

 

£1,250

Tyres 16 x £128

 

Inc

 

Tyres 16 x £128

   

£2,048

MOTs x 3

   

Inc

 

MOTs x 3

    £150

Windscreen cover

 

Inc

 

Allowance for Estimated
Residual Value

 

-£7,700

 
5 year cost  

£30,715

 

Approximate cost
if vehicle sold after 5 years

 

£33,027

 
     

£6,143 per year

     

£6,605 per year

 

At end of year five customer handbacks vehicle and starts again

     
 

If customer wishes to remain mobile after year 5 then as follows

     
 

NEW CONTRACT

     

KEEP ORIGINAL PURCHASE

 

Advance payment

 

£17,351

 

 

 

 

 

Allowance £51.40 x 52 x 5

£13,364

 

 

 

Insurance

5 x £500

 

Inc

 

Insurance

5 x £500    

£2,500

Servicing costs 5 x £250

Inc

 

Servicing costs 5 x £250

   

£1,250

Tyres 16 x £128

 

Inc

 

Tyres 16 x £128

£2,048

MOTs x 3

   

Inc

 

MOTs x 5

£250

Windscreen cover

 

Inc

     

Wear and tear

 

Inc

 

Additional wear and tear YR 6+7

  £1,600
        Yr 8+9+10 additionals   £3,000
5 year cost  

£30,715

 

Allowance for Estimated
Residual Value

 

-£1,500

 

10 year total cost

 

£61,430

 

Approximate cost
if vehicle sold after 10 years

 

£49,867

 
     

£6,143 per year

     

£4,986.7 per year

Note:  Several of the figures used are illustrative approximations and should not be assumed to be the actual cost e.g. cost of tyres, servicing etc.

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