I’m curious about the discount on offer too. It’s been mentioned a few times that 20% VAT is removed, is this true? If that’s the case can a disabled buyer have VAT removed when purchasing at a dealer too?
Tim – Motability has a block VAT exemption on all cars so, yes, they get 20% VAT off as well as sizeable manufacturer discounts (which I would guess are at least 20% and could be significantly more with some manufacturers). VAT exemption only applies at the point of a new car purchase, which is why Motability won’t allow customers to select pre-registered or used cars. Private buyers can only get the 20% VAT exemption on a new car of it has ‘significant adaptations’ for a disabled person. This includes things like hand controls, but doesn’t apply if the car is at a specification that an able bodied person could specify. In other words, when people say that they need things like electric seats or leather to ease access, these don’t constitute ‘significant adaptations’ as many able bodied people will select those. Hand controls, on the other hand, would only ever be selected by a disabled driver.