Motability Scheme: Your Guide to Car Leasing

Leasing a Car Through the Motability Scheme

For individuals facing mobility challenges, the Motability Scheme offers a vital pathway to greater independence and accessibility. This comprehensive programme allows eligible people with disabilities to lease a new car, wheelchair-accessible vehicle (WAV), powered wheelchair, or scooter by using their government mobility allowance. It's a well-established system that not only provides access to a vehicle but also bundles in essential running costs, making it a financially attractive option for many. This article delves into the intricacies of the Motability Scheme, exploring who qualifies, how the leasing process works, and the various benefits it offers.

Understanding the Motability Scheme

The Motability Scheme is a national not-for-profit organisation that has been instrumental in helping disabled people in the UK get mobile for over 40 years. The scheme is overseen by the Motability Foundation, a registered charity, while Motability Operations Ltd., an independent company owned by four major UK banks (Barclays, HSBC, Lloyds, and NatWest), handles the day-to-day finance, administration, and maintenance. Crucially, these banks have waived their right to shareholder dividends, meaning any profits generated are reinvested back into the scheme to benefit disabled customers.

Motability Operations is a significant player in the UK automotive market, operating one of the country's largest car fleets and being the biggest single-source supplier of used cars. The scheme's substantial buying power allows it to negotiate favourable terms, making the vehicles offered significantly cheaper than standard contract hire agreements. In fact, Motability states that their vehicles are at least 45% cheaper, especially when considering the inclusion of insurance and servicing.

Who is Eligible for the Motability Scheme?

Eligibility for the Motability Scheme hinges on receiving a qualifying mobility allowance. If you have a disability or illness that significantly impacts your ability to get around, you may be entitled to lease a vehicle. This also extends to parents and carers who can lease a vehicle on behalf of a child, provided the child's mobility is limited.

To be eligible, you must be in receipt of one of the following benefits and have at least 12 months remaining on your award:

It's important to note that you cannot apply for the Motability Scheme if you receive the lower rate or component of a mobility allowance, or if you receive Attendance Allowance, Carer’s Allowance, or Employment and Support Allowance (ESA).

Furthermore, if you are currently receiving DLA and have been informed by the Department for Work and Pensions (DWP) that you need to apply for PIP, you will not be able to apply for a new Motability vehicle until your PIP claim has been assessed. However, if you already have a Motability vehicle, this change will not affect your current agreement.

How Does the Scheme Work?

The core principle of the Motability Scheme is that your mobility allowance is used to pay for the lease of a vehicle. This means the vehicle does not belong to you; it is a long-term rental. If you stop receiving your qualifying benefit, you will need to return the vehicle.

Once your application is approved, your chosen mobility allowance is paid directly to Motability Operations each month to cover the lease costs. The amount of your allowance that is used depends on the vehicle you select. Some vehicles, particularly those with higher values or specialised features, may require an upfront payment known as an 'Advance Payment'.

The Role of Advance Payments

Advance Payments are similar to an initial rental in traditional contract hire but are specific to the Motability Scheme. They are non-refundable and contribute towards the cost of a vehicle that exceeds the value of the standard mobility allowance. While some smaller, more affordable cars have no Advance Payment required, many vehicles will necessitate one. The amount varies significantly based on the car's make, model, and specifications.

For example, higher-value electric cars or larger SUVs can have Advance Payments ranging from a few thousand pounds up to nearly £8,000. Wheelchair Accessible Vehicles (WAVs), due to their specialised conversion costs, almost always require a substantial Advance Payment, often starting in the thousands. The Motability Foundation may offer grants to help with these costs for those who cannot afford the Advance Payment.

The prices for these vehicles, including their Advance Payments, are updated quarterly, ensuring consistency across dealerships of the same brand. Individual dealerships may, however, offer additional incentives or deals.

What's Included in a Motability Lease?

One of the most significant advantages of the Motability Scheme is the comprehensive package of services included in the lease agreement. Unlike standard car leases, Motability covers:

• Insurance: Fully comprehensive insurance for up to two drivers is provided. This includes features like foreign use cover, and business use cover can be added if needed.
• Servicing and Maintenance: Regular servicing and all necessary maintenance and repairs are carried out by the dealer's qualified technicians.
• Breakdown Cover: RAC breakdown cover is included, offering assistance across the UK and Europe.
• Tyre and Windscreen Replacement: Costs for replacing tyres and windscreens are covered, provided they are due to normal wear and tear.

This all-inclusive approach significantly simplifies car ownership and removes many of the unpredictable costs associated with running a vehicle.

Choosing Your Vehicle and Drivers

Motability offers a vast selection of vehicles, from compact city cars to larger SUVs and MPVs. The scheme also specialises in Wheelchair Accessible Vehicles (WAVs), which are converted to provide easy access for wheelchair users. You can choose whether you want to drive the vehicle yourself, be a passenger, or have the option of both.

You can nominate up to two people to drive the vehicle on your behalf. This is particularly beneficial for those who cannot drive themselves but need access to transport. The scheme provides detailed guides and tools to help you select the right vehicle and identify any necessary adaptations, such as hand controls, steering aids, or wheelchair ramps.

To explore your options and get a feel for different vehicles, you can visit Motability-accredited dealerships across the UK. Driving Mobility, a government-supported charity, also operates 20 centres nationwide, offering expert advice and assessments for disabled drivers and passengers.

Lease Agreements and Flexibility

Motability leases typically last for three or five years, after which you can choose to return the vehicle, part-exchange it for a new one, or potentially extend your lease.

Ending the Agreement Early

If your circumstances change and you need to end your lease agreement early, Motability offers a more flexible approach than many standard contract hire agreements. Instead of facing substantial financial penalties, you will typically incur an administration fee of up to £250. This provides peace of mind should your mobility needs change unexpectedly.

Extending Your Lease

In some cases, you may be able to extend your lease for up to an additional two years. This is often an option if the vehicle has low mileage or has been adapted in a way that perfectly suits your ongoing needs. This extension option typically becomes available in the final three months of your existing lease term.

Mileage and Damage Considerations

Motability leases come with generous mileage allowances: up to 60,000 miles over a three-year lease and 100,000 miles over a five-year lease. This is considerably higher than many standard personal contract hire (PCH) agreements and reflects the fact that for many disabled individuals, their Motability vehicle is their primary, and sometimes only, mode of transport.

At the end of the lease, vehicles are inspected for damage. Motability expects vehicles to show 'fair wear and tear' consistent with their age and usage. Minor scratches, scuffs, or small dents are generally considered acceptable. However, significant damage, such as major bodywork issues, interior damage (rips, burns, or heavy stains), or damage caused by the misuse of mobility aids, may incur charges.

There's also a 'Good Condition Payment' incentive. You can receive money back at the end of your lease if the vehicle is returned in excellent condition, with a valid MOT, both sets of keys, the parcel shelf, and any charging cables (for EVs). Settling any outstanding debts is also a requirement for this payment.

Motability and Electric Vehicles (EVs)

The Motability Scheme is actively embracing the transition to electric vehicles. With over 70,000 EVs currently on the scheme, Motability is increasing its EV offering to meet demand and support the government's environmental targets. This means a growing number of electric models and variants are available.

For those leasing their first EV through the scheme, Motability will arrange and cover the cost of a standard home charge point installation. This includes ensuring adequate space for charging and access. However, non-standard installations, such as those requiring long cable runs or electrical upgrades, may incur additional costs.

Recognising that many users may not have access to off-street parking or driveways, Motability is committed to supporting accessible public charging infrastructure. They have invested £300 million to help make charging more affordable and accessible. All Motability EV drivers receive a 'Go Charge' card and app, which provides access to over 58,000 public chargepoints from numerous operators. While public charging costs are currently paid by the user, the Go Charge service ensures users never pay more than the operator's standard 'pay as you go' tariff.

Frequently Asked Questions

Can I lease a car from the Motability scheme?

Yes, if you receive a qualifying mobility allowance and meet the scheme's criteria, you can lease a car, WAV, powered wheelchair, or scooter through the Motability Scheme.

What benefits qualify for the Motability scheme?

The qualifying benefits are the higher rate mobility component of DLA, the enhanced rate mobility component of PIP, Armed Forces Independence Payment (AFIP), War Pensioners' Mobility Supplement (WPMS), and the Scottish equivalents: Adult Disability Payment (ADP) and Child Disability Payment (CDP), provided you have at least 12 months remaining on your award.

Do I have to drive the car myself?

No, you can nominate up to two other drivers if you are unable to drive yourself. The vehicle can be used to help you get out and about.

What happens if my benefit stops?

If you stop receiving your qualifying mobility allowance, you will need to return the vehicle to Motability. You may be able to keep the car by continuing to pay for the lease yourself, but this would typically involve a substantial upfront payment and a different leasing arrangement.

Is insurance included?

Yes, fully comprehensive insurance for up to two drivers is included in the Motability lease agreement.

What if I need adaptations to the vehicle?

The scheme covers the cost of necessary adaptations to make the vehicle suitable for your needs, such as hand controls, steering aids, or wheelchair access.

Can I get an electric car on Motability?

Yes, there is a wide range of electric vehicles available on the Motability Scheme, and the scheme also covers the cost of a standard home charge point installation for your first electric vehicle.

What is an Advance Payment?

An Advance Payment is an upfront payment required for certain vehicles on the Motability Scheme that have a higher value than the standard mobility allowance covers. It is not a deposit and is non-refundable.

The Motability Scheme provides a valuable and accessible way for disabled people to maintain their independence and mobility. By understanding the eligibility criteria and the comprehensive benefits offered, individuals can make informed decisions about how to best utilise their mobility allowance.

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