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Thread: Motability Contract Hire agreement

  1. #1
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    Motability Contract Hire agreement

    Just received my PIN and other data for my first Motability car.

    Can someone have a look at their "Pre contract information Hire Agreement regulated by the Consumer credit Act 1974"
    Document please?

    the reason I ask is under Key financial information section the following paragraph is there:-

    "If the hirer (Or disabled person) ceases to recieve the Allowance because they no longer qualify for it, the Rental instalments must still be paid."

    Is this new and does this therefore give a pointer to what Motability may be lookingb to do? i.e. if under pIP you los ethe higher rate, you can continue to the end of the agreement, pay the equivalent to the HRMC and keep the car? or has this always been there?

    my logical thinking is that you sign a three year contrcat hire agreement with Motability and you may be able to keep the car until the end, as the T & c's say they MAY cancel the agreeement if you lose your HRMC, but if you have signed a legal document, can you say "no, noy until the end of the agreement" and keep the car? Would this also stop Motability having thousands of cars returned in a short time and depress the second hand market?

    Secondly, the contract Hire T & C's booklet dated 01/12, also make note of if the car is returned before then end of the agreement, Motabvility are entitled to sell the car and any shortfall between the money received and the ourtsanding monthly payments may be taken from the hirer and if so required, any outstanding sum may be required to be paid at 2% over barclays base rate.

    Is this also a standard statement to the T & C's or new to the 01/12 T & C's?

  2. #2
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    Quote Originally Posted by warkman View Post
    Just received my PIN and other data for my first Motability car.

    Can someone have a look at their "Pre contract information Hire Agreement regulated by the Consumer credit Act 1974"
    Document please?

    the reason I ask is under Key financial information section the following paragraph is there:-

    "If the hirer (Or disabled person) ceases to recieve the Allowance because they no longer qualify for it, the Rental instalments must still be paid."

    Is this new and does this therefore give a pointer to what Motability may be lookingb to do? i.e. if under pIP you los ethe higher rate, you can continue to the end of the agreement, pay the equivalent to the HRMC and keep the car? or has this always been there?

    my logical thinking is that you sign a three year contrcat hire agreement with Motability and you may be able to keep the car until the end, as the T & c's say they MAY cancel the agreeement if you lose your HRMC, but if you have signed a legal document, can you say "no, noy until the end of the agreement" and keep the car? Would this also stop Motability having thousands of cars returned in a short time and depress the second hand market?

    Secondly, the contract Hire T & C's booklet dated 01/12, also make note of if the car is returned before then end of the agreement, Motabvility are entitled to sell the car and any shortfall between the money received and the ourtsanding monthly payments may be taken from the hirer and if so required, any outstanding sum may be required to be paid at 2% over barclays base rate.

    Is this also a standard statement to the T & C's or new to the 01/12 T & C's?
    Interesting. I cannot see why if you no longer qualify for the high rate bit still get low rate, why you cannot just pay the remaining amount and keep the car till end of the lease. Not sure if this is a new thing, maybe it has always been there but no one has noticed it before. If it is new, then maybe that is the way Motability want to go, to still enable people to honour their three year lease. I think Motability are going to be confirming later on in the year, what is going to happen to the lease when PIP starts in 2013.

  3. #3
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    I'm off to the FA Cup Final but whenI get back I will compare my old and new agreements to see what the differences are.

  4. #4
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    Thanks all. as I said, this is my first one so I don't know if that is and has always been the standard conditions. It just seems an interesting line...

  5. #5
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    I have to admit I never noticed it 3 years ago, I'm off to check my paperwork and I'll be back shortly...
    Motability Car History
    05/09-05/12; Nissan Qashqai 1.5 Diesel Tekna; 36,500 miles; avg 41.1mpg
    06/12-07/15; Ford C-Max 2.0 Diesel Titanium Powershift; 35,400 miles; avg 37.8mpg
    07/15-09/17; Skoda Octavia 1.6 Diesel SE-L DSG; 28,200miles; avg 43.9mpg
    09/17-Present; VW Touran 1.4 Petrol SEL DSG; 11,600miles; avg 35.9mpg (28.6 - 43.9mpg)

    Click here to send me an email with any private Motoring questions you may have. Replies usually within 48hrs

  6. #6
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    Quote Originally Posted by warkman View Post
    Just received my PIN and other data for my first Motability car.

    Can someone have a look at their "Pre contract information Hire Agreement regulated by the Consumer credit Act 1974"
    Document please?

    the reason I ask is under Key financial information section the following paragraph is there:-

    "If the hirer (Or disabled person) ceases to recieve the Allowance because they no longer qualify for it, the Rental instalments must still be paid."

    Is this new and does this therefore give a pointer to what Motability may be lookingb to do? i.e. if under pIP you los ethe higher rate, you can continue to the end of the agreement, pay the equivalent to the HRMC and keep the car? or has this always been there?

    my logical thinking is that you sign a three year contrcat hire agreement with Motability and you may be able to keep the car until the end, as the T & c's say they MAY cancel the agreeement if you lose your HRMC, but if you have signed a legal document, can you say "no, noy until the end of the agreement" and keep the car? Would this also stop Motability having thousands of cars returned in a short time and depress the second hand market?

    Secondly, the contract Hire T & C's booklet dated 01/12, also make note of if the car is returned before then end of the agreement, Motabvility are entitled to sell the car and any shortfall between the money received and the ourtsanding monthly payments may be taken from the hirer and if so required, any outstanding sum may be required to be paid at 2% over barclays base rate.

    Is this also a standard statement to the T & C's or new to the 01/12 T & C's?
    I have had a good look through my 2009 paperwork and cannot see any refererence to it. What is the clause number so I can make sure I have not missed it.

  7. #7
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    Quote Originally Posted by paul1234 View Post
    I have had a good look through my 2009 paperwork and cannot see any refererence to it. What is the clause number so I can make sure I have not missed it.
    Ihave looked at my pre-contract information paperwork that I got in March. It is on the first page of the Pre-contract information, under the Rental instalments paragraph, just before the box of where it states what vehicle you have ordered. There is no clause no.

  8. #8
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    Quote Originally Posted by CTCELT88 View Post
    Ihave looked at my pre-contract information paperwork that I got in March. It is on the first page of the Pre-contract information, under the Rental instalments paragraph, just before the box of where it states what vehicle you have ordered. There is no clause no.
    Mystery solved. I have looked back at my 2009 agreement and it has exactly the same clause, word for word. I believe this clause is to cover motability in certain circumstances. If a hirer loses their DLA, motability will normally allow then to keep the car for 1 month. There are also circumstances where DLA is stopped but motability do not find out straight away. What the clause is saying is that as the hirer you are responsible to cover these payments. I believe the other clauses and terms would not allow the hirer to continue the contract after they have lost DLA, although with PIP migration it will be interesting to see what is proposed.
    If motability get cars back early, in many cases they could make a profit as they have benefited from a manufacturers discount and VAT free purchase. so a £20k car with a 10% discount (like a Golf) and VAT free is £15000 and a £20k Astra with a 30% discount £11666. Motability would recoup in excess of that if a hirer lost his DLA within a matter of weeks.

  9. #9
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    Interesting. Thanks for all your replies.
    I still wonder if it can be used to our advantage however if or when we lose the PIP.
    I think the problem would be for Motability if the large amount of PIP applicants are denied, there is the possibility of flooding the market with second hand cars and the prices will drop because of that.
    Though we do not know how many or the exact timeline thes ones who lose their PIP will be over, in terms of quantity of people vs dates.

  10. #10
    Morning peeps,

    Im interested in your post and would appreciate any of your help.

    I have lost my HRC of DLA, i have been on DLA for over 10 years, I am appealing but am getting varying answers to my problem. I am 18+ months into contract and don't want to lose car is there anyone out t
    here who knows the T&C that I could fight to keep it or pay or pay until the lease is over. I am terrified to ring them, apparently in the past you could keep until appeal heard but now they take too long so the are removing vehicles. Does anyone know any loopholes I could use.

    Regards Little miss

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