Car pricing options with the Motability Scheme

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, services and routine repairs. Plus, a 60,000-mileage allowance over three years. 

This article explains the different car 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.

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Every three months, we renegotiate our prices so we can offer you the best deals from each manufacturer. This allows 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.

The shift towards electric vehicles (EVs) in response to the Zero Emissions Vehicle (ZEV) Mandate is impacting the new car market. As manufacturers focus on EV production, the availability of petrol and diesel cars is expected to decrease, which will drive up prices. 

The Motability Scheme offers a worry-free lease package to make sure you get the best value for money when getting a new car through the Scheme.  

• How you pay for your lease
• Cars that cost less than your mobility allowance
• Cars that cost your full mobility allowance
• Cars that cost your full mobility allowance and have an Advance Payment
• How we calculate the cost of your lease  
• Why some cars have an Advance Payment and others do not
• Why prices change

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: 

Hyundai i10 1.0 [63] Advance 5dr [Nav]

• If you’re on the higher rate PIP allowance, you’re currently receiving £75.50 per week*
• You will pay £66.25 per week for this vehicle
• Your allowance provider will pay the remaining £9.25 per week straight to you

Toyota Aygo X 1.0 VVT-i Pure 5dr

• You’ll pay £71.50 per week from your mobility allowance of £75.50
• Your allowance provider will pay the remaining £4 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:

Peugeot 2008 100kW Allure 50kWh 5dr Auto

MG MG3 1.5 VTi-TECH Exclusive 5dr [Navigation]

If you’re on the higher rate PIP allowance, then your total allowance of £75.50 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

If you would like to expand your choice of cars, you can choose one that is priced higher than your mobility allowance. To do this, you will need to make 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:

Renault Scenic e-Tech 160kW Techno 87kWh Long Range 5dr Auto

• You’ll pay your total allowance of £75.50 per week and any increases to us
• You’ll also pay us a one-off Advance Payment of £495

Fiat 600 115kW Red 54kWh 5dr Auto

• You’ll pay your total allowance of £75.50 per week and any increases to us
• You’ll also pay us a one-off Advance Payment of £499

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.
• Services and routine repairs: The cost of each service, and any maintenance repairs necessary due to general wear, are included as part of your worry-free package.
• EV charging support: All Scheme customers with an EV get access to Motability Go Charge, which gives access to over 50,000 chargepoints in one app and card. We’ll arrange and cover the cost of a home chargepoint and a standard installation, if you’re leasing your first electric car on the Scheme. If you cannot get a home chargepoint, you’ll be given access to the bp pulse network for easy public charging.
• 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 online support, 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 payment 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.

All electric vehicles (EVs) are automatic and will likely have the latest car technology. Electric cars can often have a higher price in the retail market compared to petrol or diesel cars, 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 models available on the Scheme. And with the changes in the UK car market, we can expect to see the prices of electric cars decrease as the prices of petrol and diesel models increase due to the ZEV Mandate.

Why do prices change?

Our car prices tend to reflect the general retail market, so wider economic pressures can impact what the changing car market means for you. There have been global car market changes in the last few years 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. 

 

*This amount is based on the weekly allowance rate of £75.50 (as of 8 April 2024).