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Spotlight on: Pricing

If you receive a qualifying mobility allowance, you can choose to exchange it to lease a brand-new vehicle on the Motability Scheme. The Scheme offers a worry-free car leasing package, which includes insurance for up to three drivers with Direct Line Motability (DLM), full RAC breakdown cover, service maintenance, and repairs plus a 60,000-mileage allowance over three years.

This article explains the different pricing options available on the Scheme, and how the cost of a lease is calculated. Please note that all prices are correct at the time of publishing and are updated on 1 January, 1 April, 1 July, and 1 October. Remember, prices can go up as well as down.

You can check the price of any car on the Scheme at any time using our Car Search tool.


Every three months, we renegotiate our prices so we can offer you the best deals from each manufacturer. This enables us to offer you leases that are great value-for-money. You can choose from a wide range of makes and models, as well as lots of different vehicle types to suit your individual needs.

How you pay for your lease

To make paying a simple process, we receive payments straight from your allowance provider.

There are three payment options you can choose from: cars that cost less than your mobility allowance, cars that cost your full mobility allowance, and cars that cost more than your full mobility allowance with an additional Advance Payment.

1. Cars that cost less than your mobility allowance

You can choose to use some of your allowance towards your Motability Scheme vehicle. This means you can spend the rest of your allowance as you want.

This is known as a fixed or ‘constant’ lease.

Examples of these vehicles available on the Scheme include: 

Kia Picanto 1.0 X-Line S 5dr Auto

  • If you’re on the higher rate PIP allowance, you’re currently receiving £71 per week* 
  • You will pay £58.50 per week for this vehicle 
  • Your allowance provider will pay the remaining £12.50 per week straight to you

Toyota Aygo X 1.0 VVT-i Pure 5dr

  • You’ll pay £62.50 per week from your mobility allowance of £71 
  • Your allowance provider will pay the remaining £8.50 per week straight to you

If your allowance increases during your lease, you’ll receive the extra money from your allowance provider.

Discover cars that cost less than your mobility allowance

2. Cars that cost your full mobility allowance

You can choose to use all of your mobility allowance to lease a vehicle through the Scheme. The Scheme will receive your total mobility allowance, even if it goes up during your lease.

This is known as a ‘variable’ lease.

Examples of these vehicles available on the Scheme include:

Vauxhall Corsa 1.2 Turbo Ultimate 5dr

PEUGEOT 208 1.2 PureTech 100 Active 5dr

  • If you’re on the higher rate PIP allowance, then your total allowance of £71 and any additional increases in your mobility allowance will be paid directly to the Motability Scheme.

Allowance rates can change each year, usually in line with inflation. As inflation rises, the expenses associated with the Scheme rise too, so we allocate this amount to cover the costs.

Discover cars that cost your full mobility allowance

3. Cars that cost your full mobility allowance and have an Advance Payment

You can choose to expand your choice of cars by choosing one that is priced higher than your mobility allowance by making a single upfront payment. This covers the difference between your allowance payments and the overall cost of the car during your 3-year leasing period.

This is known as an ‘Advance Payment’. It’s not a deposit and it’s non-refundable.

Examples of these vehicles available on the Scheme include:

Toyota Bz4x 150kW Motion 71.4kWh 5dr Auto [11kW]

  • You’ll pay your total allowance of £71 per week and any increases to us 
  • You’ll also pay us a one-off Advance Payment of £495 

Nissan Qashqai 1.3 DiG-T MH Acenta Premium 5dr

  • You’ll pay your total allowance of £71 per week and any increases to us 
  • You’ll also pay us a one-off Advance Payment of £399 

Discover cars that are available with an Advance Payment

How do we calculate the cost of a lease?

The total cost of a lease is calculated by working out the difference between the amount the Scheme pays for the new car and the estimate of its value at the end of the lease.

This figure is then added to other costs associated with your lease. Some examples of these costs include:

  • Insurance: Every Motability Scheme lease is all-inclusive, which means you have fully comprehensive cover for up to three drivers on your vehicle. Customers can access the same level of cover, regardless of their age or where they live.
  • Maintenance: The cost of each service, and any maintenance repairs necessary due to general wear, are included as part of your worry-free package.
  • Customer support: Key customer support elements include 24/7 breakdown cover, tyre repair and replacement, and windscreen repairs. It also includes a dedicated UK call centre and the provision of continuous mobility (such as hire cars or alternatives for customers whose cars are off the road for a period of time).

Why do some cars have an Advance Payment but not others?

Advance Payments cover the difference between your weekly rental amount and the money it takes us to lease the vehicle. If a vehicle is more expensive to buy, it will cost more to lease and therefore is more likely to come with an Advance Payment.

Automatics and electric vehicles (EVs) tend to have a higher price in the retail market compared to their manual equivalent, as they are more complex, and often more expensive to manufacture. However, we do work hard to make sure there is a large range of affordable automatic models available.

Why do prices change?

Our car prices tend to reflect the general retail market, so wider economic pressures can have an effect. There have been global supply issues affecting the motoring industry over the past few years, and that has made it more expensive to manufacture new vehicles.

The Motability Scheme offers a price guarantee which means the price confirmed when your application is accepted is the amount you will need to pay to lease your car.

The price guarantee stands, no matter how long it takes for your new car to be delivered. 

Why do some cars have an Advance Payment but not others?

Advance Payments cover the difference between your weekly rental amount and the money it takes us to lease the vehicle. If a vehicle is more expensive to buy, it will cost more to lease – and therefore is more likely to come with an Advance Payment.

Automatics tend to have a higher price in the retail market compared to their manual equivalent, as they are more complex, and often more expensive to manufacture. However, we do work hard to make sure there is a large range of affordable automatic models available.

How does the Scheme work?

The Motability Scheme provides a worry-free package:

  • First, make sure you’re eligible to join the Scheme.
  • You can pick the brand-new car of your choice, at a price that works for you.
  • If you don’t drive, you can add friends and family as named drivers instead.
  • A typical lease lasts for three years, and we take care of running costs like insurance and breakdown cover as part of our all-inclusive package. All you need to do is add fuel and go.
  • Then, at the end of your lease, you hand your vehicle back and you can collect your next one.

You can find out more by requesting a free information pack

It isn’t just cars on the Motability Scheme

As well as a great choice of cars, we also provide a wide range of Wheelchair Accessible Vehicles (WAVs), scooters and powered wheelchairs with the same worry-free leasing package.

Find out what else is available on the Scheme

 

*This amount is based on the weekly allowance rate of £71 (as of 12 March 2024)..

 

Join the Scheme

Check out our latest Motability Scheme price list and explore our wide range of affordable cars available on the Scheme.

Discover which cars are available on the Scheme with no Advance Payment from the latest pricing quarter.

The prices shown are valid for applications placed before 31st March 2024.

 


Related articles

Latest prices for the Motability Scheme

8 things you can get with Personal Independence Payment (PIP)

If you care for someone with a disability, the Motability Scheme could help

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