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 three named drivers, 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 – for more up-to-date prices, use our Car Search tool.
Every three months, we renegotiate our prices so we can offer you the best deals from each manufacturer. This lets us offer you sustainable 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 – from small hatchbacks to large multi-purpose vehicles (MPVs).
How you pay for your lease
We’ll receive payments straight from your allowance provider, to make paying simple.
There are three options you can choose from:
1. Cars that cost some of your mobility allowance.
You can choose to use just some of your allowance. This means you can spend the rest of your allowance as you want, including if it goes up in the future.
This is known as a fixed or ‘constant’ lease.
If you lease the Hyundai I10 MPi SE Connect 5dr Hatchback, for example:
- You’ll pay £55.50 per week
- If you’re on the higher rate PIP allowance, you’re currently getting £64.50 per week*
- Your allowance provider will pay the remaining £9 per week straight to you
- If your allowance goes up, you’ll receive the extra money from your allowance provider
If you lease the Vauxhall Corsa 1.2 Turbo Ultimate 5dr Hatchback, for example:
- You’ll pay £64.50 per week
- If you’re on the higher rate PIP allowance, you’re getting this same amount – £64.50
- You would not receive any extra money until your allowance increases
- If your allowance goes up, you’ll receive the difference between your weekly rental amount and your total allowance from your allowance provider
This pricing quarter there are three times as many cars available for less than your total allowance.
2. Cars that cost all of your mobility allowance
You can choose to use all of your allowance. We’ll always receive your total mobility allowance, even if it goes up during your lease.
This is known as a variable lease.
If you lease the Suzuki S-Cross 1.4 Boosterjet 48v Hybrid Motion 5dr Hatchback, for example:
- You’ll pay your total allowance and any increases to us
Allowance rates can change each year, usually in line with inflation. When inflation rises, the cost to bring you the Scheme rises too, so we put this amount into covering those costs.
This pricing quarter we’ve got a wider choice of cars available that cost your total mobility allowance.
3. Cars that cost all of your mobility allowance and have an Advance Payment.
If you choose a more expensive car, you’ll need to pay the difference between your allowance payments and the cost over three years upfront.
This is known as an Advance Payment. It’s not a deposit and it’s non-refundable.
If you lease the Kia Sportage 1.6T GDi ISG 2 5dr, for example:
- You’ll pay your total allowance and any increases to us. Remember that allowance rates can change each year, usually in line with inflation. When inflation rises, the cost to bring you the Scheme rises too, so we put this amount into covering those costs
- You’ll also pay us a one-off Advance Payment of £499
This quarter we’ve got twice as many cars available with an Advance Payment of £500 or less.
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. 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 named drivers. 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 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.
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.
*This amount is based on the weekly allowance rate of £64.50 (as of 13 April 2022).