If you’re in receipt of a higher rate mobility allowance, such as the Enhanced Rate Mobility Component of Personal Independence Payment or Higher Rate Mobility Component of Disability Living Allowance, you could choose to exchange it to lease a vehicle on the Motability Scheme.
The Scheme offers a unique, worry-free car leasing package, which includes insurance for three named drivers, full RAC breakdown cover, service maintenance and repairs plus a 60,000 mileage allowance over three years.
You will find a large range of cars available to lease, from all the major manufacturers, ranging from small hatchbacks to large multi-purpose vehicles (MPVs). Every three months, the cost of available cars is negotiated with manufacturers – this ensures sustainability and the best value lease agreement possible.
These prices are then added to the other costs associated with your lease, and the price you pay falls into one of three pricing categories:
- Cars that cost less than your mobility allowance
- Cars that cost all of your mobility allowance
- Cars that cost all of your mobility allowance plus 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 some other costs associated with your lease . If the total cost of your lease is more than the total amount of your mobility allowance over the lease period, then a non-refundable upfront payment, which we call an Advance Payment, is needed. If the total cost is less than your allowance, the remainder will be paid direct to you by the Department for Work and Pensions (DWP).
How does the Scheme work?
- You pick the brand new car or scooter 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.
Costs we need to consider
A car loses value as it gets older so this takes into account the cost of the new vehicle and what it is worth at the end of the lease.
Insurance, equivalent to fully comprehensive, for three named drivers is included in every Motability Scheme lease. Customers can access the same level of cover, regardless of their age or where they live.
The cost of each service, and any maintenance repairs necessary due to general wear, are included as part of your worry-free package.
Key customer support elements include 24/7 breakdown cover, tyre repair and replacement, windscreen repairs, the provision of continuous mobility (such as hire cars or taxis for customers whose cars are off the road for a period of time), subsidised pricing for Wheelchair Accessible Vehicles and vehicle adaptations plus a dedicated UK call centre.
Why do prices fluctuate?
Prices tend to reflect the general retail market so wider economic pressures can have an effect. The 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 however long it takes for your new car to be delivered.
Why are automatics more expensive than manual vehicles?
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.
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, scooters and powered wheelchairs with the same worry-free leasing package
Want to find out more about the Scheme?
If you’d like us to send you more information about the Motability Scheme, simply request a free information pack below.