This is something that has always frustrated me. I wouldn’t mind betting that Motability Operations get full VAT exemption on the total price of the car, including options that we have paid the full price (inc VAT) for. I challenged them on this years ago and they didn’t deny it. Plus, of course, the second hand value of the car (or ability to sell it quickly) at the end of lease is improved by any optional extras that we have paid for. Probably only to the tune of around 10% of the price of those options when new, but it’s still a win for them.