@martinod This is covered on other threads. Here’s a full summary that I posted on that thread;
I’ve just done a word search on the 150 page Budget Red Book for every mention of Motability, and the results are that the changes (which will ‘save’ the exchequer £1bn over 5 years) are;
1) Removal of luxury brands (Note – as we know, they are premium brands, not luxury, and this won’t save the exchequer any money whatsoever).
2) VAT relief to be excluded from Advance Payments from July, unless the car has substantial and permanent modifications for wheelchair or stretcher users (the same rule that applies to VAT exemption on private new car purchases)
3) Annual mileage limit to be reduced to match personal leases
4) Overseas breakdown cover to be removed.
5) The cost of Insurance Premium Tax at 12% to be added to leases
So, in summary, points 2 and 5 will increase APs, point 1 reduces choice and points 3 and 4 remove some of the things that help to make Motability very attractive.
Then, of course, there’s the new tax of 3p per mile for EVs and 1.5p per mile for PHEVs, although that affects everyone, not just Motability customers.
I can’t get terribly exercised over all of this, as yesterday’s removal of premium brands was the final decider that our current Motability car will be our last. It’s not a scheme for us any more.