That’s exactly what I said earlier in my post. Lower rate recipients could get the cars that have been handed back. Especially if they’ve got low mileage due to the pandemic. I’d think that it would make better financial sense for Motability too.
I think it would make far better sense to allow existing customers to access returned cars, given the current problems. Opening up any aspect of the scheme to lower rate recipients is a complete non starter IMHO. It would be wrong on many levels and would see the end of the VAT exemption for everyone else. We must remember that we have been through a pandemic and the countries finances are in dire shape and it will take many years to recover. This would be the worst time possible to suddenly exempt millions of additional people in the UK from VAT. That money would have to come from other means. It might sound good idealistically, but it’s just not going to happen as it would ultimately result in the end of the Motability scheme.