I can’t see how a dealer can get a black mark if a scheme customer cancels the order prior to taking delivery or if the car is returned early for one of numerous reasons beyond the dealers control. Motability have always locked in the AP at time of order, I can’t see this ever changing.
They don’t get a black mark if a customer cancels, but they can when they alter the AP, not that most seem to worry about it. Motability have a ‘fines’ system which reduces dealerships commission, and altering APs is one of the ‘offences’, although given that most do it they don’t seem to be too worried about it (or they perhaps do it in a way that doesn’t raise a flag)
Indeed mate!
On a t’other Motability page:
In the Autumn Budget, the Government announced tax changes which will increase the cost of running the Motability Scheme.
From 1 July 2026, VAT and Insurance Premium Tax (IPT) will apply to certain leases.
This means it will cost more to deliver the Scheme unless we make some changes.
What’s changing?
We’re currently looking at what we include in the Scheme and how we manage costs. This will help us keep the Scheme affordable and sustainable.
Our priority is protecting our core package, including insurance, servicing, maintenance and breakdown cover, while keeping prices fair.
Together with the Motability we’re looking closely at how any change could affect customers.
And right now, we’re speaking to customers to understand what’s important and essential.
When is the Scheme changing?
Nothing is changing right now. If a customer orders a new vehicle before 1 July 2026, they’ll get the current lease terms and conditions and our ‘price freeze’. This means the price at the time they apply is locked, even if it changes before they receive their vehicle.
We may make a few updates before July to help us reduce costs or work more efficiently.
These updates will not change:
The customer’s existing lease terms; or
Our all-inclusive package
How are we updating customers?
We’ve launched a new Scheme change page on the Scheme website. This will help to guide customers through the upcoming changes and answer common questions.
What’s your role in the changes?
You’re the face of the Motability Scheme. The way you talk about change shapes how customers feel about it.
Naturally, customers will have questions. And they may reach out to you to find out more.
We’re committed to giving you the tools you need to manage these conversations.
In the coming weeks we’ll:
Continue to share key updates; and
Provide dedicated training to help you effectively manage customer interactions
In the meantime, please:
Signpost customers to the Scheme change page
Avoid speculating on what might change
Let them know we’ll be in touch with more details soon
Keep on top of renewals. Reach out to customers when they’re due to renew
Keep reading our emails and check the DRC regularly
Let us know what you’re hearing
We’re listening. We’re engaging with customers about these changes and value any feedback they provide.
Please use the web form below to pass on any questions or feedback. This will help to shape the guidance we give you. We want to support you to:
Handle conversations with confidence
Avoid mixed messages
Keep applications moving
Please do not include any customer details or personal data in this form.
Your name
Dealership name
Dealer code
Your email address
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Summary of feedback
When did you hear about this feedback?
