Out of interest is the price cap set at retail price inclusive of VAT or exclusive. Motability are not invoiced the VAT so is it fixed at what they pay or how much the average Joe would pay including the VAT.
It’s the on the road price including VAT even though, as you say, they don’t pay either the full retail price or the VAT!
FastBike1000 is correct that the rules (which aren’t really adhered to) state that for cars to appear that are above the price cap there has to be a ‘qualifying’ (entry) level model that is below the price cap.
All of this further supports my view that these price caps are daft. They don’t make sense, don’t reflect the actual cost, restrict choice for no logical reason and aren’t adhered to when it suits.