Motability Scheme prices are set to change this Thursday, October 1, potentially affecting hundreds of thousands of disabled drivers and people with health conditions. The scheme, run by Motability Operations, lets people claiming certain disability benefits use part of their award to lease a new car, wheelchair-accessible vehicle, or scooter.
Quarterly price review
Prices are reviewed every three months "so we can offer you the best deals from each manufacturer." Once changes are applied, prices are frozen at that point, locking in the cost even if the price changes before the vehicle arrives. Updates take place on January 1, April 1, July 1, and October 1.
This week's change could mean the cost of certain vehicles rises, owing to supply chain pressures and fluctuating insurance costs. The scheme works closely with vehicle manufacturers to decide which models are included and at what price, aiming to "get the best possible prices for our customers, so you can keep doing the things you need to do."
Factors affecting prices
Prices are agreed with manufacturers based on the Manufacturer Recommended Retail Price (RRP), the estimated value of the vehicle at the end of its lease, the ongoing costs of running the scheme and providing an all-inclusive package, and the cost to refurbish a vehicle when it is returned after a lease ends.
The scheme also considers which vehicles are most popular and best suited to customers' needs, as well as insurance, servicing, and maintenance costs, all bundled into the lease. "Reviewing prices regularly helps us make sure we can offer a steady supply of vehicles, so you'll always have plenty of choice."
Eligibility for the scheme
People can apply to join the Motability Scheme if they receive the enhanced rate mobility part of Personal Independence Payment (PIP), higher rate mobility part of Disability Living Allowance (DLA), enhanced rate mobility part of Adult Disability Payment (Scotland), higher rate mobility component of Child Disability Payment (Scotland), War Pensioners' Mobility Supplement (WPMS), or Armed Forces Independence Payment (AFIP). Applicants must have a minimum of 12 months remaining on their allowance when applying.
