Large numbers of people on benefits are using a support system to help them get a new car. The Motability Scheme, a program that assists individuals receiving disability benefits, has seen a significant rise in customers, with over 800,000 people now enrolled in the UK. This scheme allows those who receive a disability benefit with a higher or enhanced rate of the mobility component to put some or all of the payment towards leasing a new car, wheelchair-accessible vehicle, scooter, or powered wheelchair. People receiving benefits such as PIP, DLA, WPMS, and AFIP are eligible to join the program.
In addition to providing a new vehicle, the Motability Scheme also includes insurance, breakdown assistance, servicing, maintenance, tires, and windscreen repairs in its package. The most recent price list for leasing packages, which offers a selection of over 950 vehicles, has been released on the scheme’s website. It’s important to note that while some options only require the use of part or all of the mobility award payment, others may ask for an upfront fee ranging from £100 to £2,000.
Andrew Miller, the CEO of Motability Operations, highlighted the increasing costs faced by drivers due to inflation and energy price hikes. He also mentioned the pressure on car manufacturers to meet sales targets as the UK transitions to electric vehicles, which could result in higher advance payments for cars on the scheme. Despite these challenges, Miller emphasized the scheme’s commitment to providing customers with value, with the program being 45% cheaper on average compared to other options.
For individuals who have been receiving higher rates of qualifying benefits or new claimants, there is a lesser-known benefit of a £750 payment available for those leasing a vehicle for the first time. This one-time offer can be put towards a new lease and can either be sent directly to the dealer as part of an advance payment or paid to the customer after they receive their vehicle. Customers cannot receive both the New Vehicle Payment and the New Product Payment, which is a £100 payment for scooters and powered wheelchairs.
The Motability Scheme offers over 950 cars, with more than 45 models requiring no advance payment, allowing the £750 New Vehicle Payment to benefit the claimant directly. As manufacturers focus more on electric vehicles, the scheme now includes 209 electric cars, with 42 models having Advance Payments under £1,000. This shift in focus means that some petrol and diesel models are being phased out, providing more options for customers looking to lease an electric vehicle.
In addition to the new vehicle, customers also receive a comprehensive package that includes a 60,000-mileage allowance over three years, or 100,000 for Wheelchair Accessible Vehicles (WAV), Kwik Fit replacement tires, many adaptations at no extra cost, servicing and maintenance, insurance, yearly tax, windscreen repair or replacement, the option for three drivers, and full RAC breakdown assistance. More details about the Motability Scheme can be found on their website, providing individuals with the information they need to make an informed decision about leasing a vehicle through the program.