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Our operating model is designed to ensure the Motability Scheme is here for the long term and to protect all customers from unexpected costs during their lease.
Our capital reserves provide this protection, shielding customers from volatility and protecting the Motability Scheme from the risks it faces.
We do not hold any reserves as cash. Any profits we generate are reinvested back into our customers’ mobility or by providing discretionary donations to the Motability Foundation. There is no expectation of future donations in the near future.
By reinvesting our profits we’re able to reduce the amount of additional funding we need to run the Motability Scheme.
As our customer number has increased, so has our capital requirement. As at the end of September 2024, our fleet of customer vehicles was valued at around £14bn, of which £4bn was funded using our reserves. The remaining amount is financed through the bank and bond markets.