Remember if you go for a second hand cheap car, you will need to put aside money for repairs, which can be significant, no car to tied you over, plus if the engine goes, you are looking at £5,000 for replacement and fitting for example.
Not if you are running a car that cost a couple of grand or less. Faced with a bill of £5k you would scrap the car and buy another. Even in that unlikely worst case scenario, your total outlay of buying two very cheap cars would still be significantly less than the outlay with a Motability car. I know loads of people who run old and cheap cars. Yes, they are often having to get repairs done, but most aren’t expensive and their total outlay is but a fraction of what we pay to run our cars (which we hand back). Keep in mind that the biggest cost with a car is depreciation, something that doesn’t worry those running older cars. Those who wish to avoid the risk of any unexpected bills whatsoever, or who are insistent on a brand new car every 3 years, are obviously always best placed to have a Motability car. But this comes at a cost.