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The new rules (particularly the mileage) seem to me, to precipitate the end of the scheme in the way we know it. There’s a couple of reasons I think this maybe the case:
(1) the beauty of the scheme for us (and I suspect many/most others) is that it was very stress free. Whatever else happened in your life, you knew your car was a constant. You had paid for it, up front and with your allowance and could pretty much use it how you wanted to without worrying. I think that was the very essence of the scheme and that’s now been lost
(2) The key feature of the scheme was, that unless you were doing colossal mileages, ALL costs were covered and you knew exactly where you stood. The only variable was whether or not you got the GCB at the end and given that most people did and that it was a modest amount of money, it was not a major consideration. Now though, things have changed. There will be people incurring costs they hadn’t planned for. Unexpected tyre costs and potentially huge bills at the end of leases for excesses mileage. Someone doing (a fairly reasonable) 12k miles per year will receive a retrospective (the important bit) bill for £1,500. 20,000 miles (the old limit) and their end of lease bill for a whopping £7,500 (at the same time as they’ll have to find the AP for their next lease). What are Motability going to do if the user can’t afford to pay what they owe? Are we going to have the unedifying sight of Motability taking disabled people to court (whilst also leaving them with no onward means of transport because they couldn’t take a new lease whilst they still owe on the old one). How’s that going to look? Have they eveh thought that through? I hope so because the sheer numbers involved in the scheme mean that this isn’t just a possibility, it’s a certainty that it will happen.
It seems to me that the Motability scheme relies on volume. Every time APs go up, if you’re anything like me, you say ‘oh that could be me out of the scheme’ but when you do the maths, it’s still the best way to run your car. These new rules though, change the scheme fundamentally and I feel that could be a tipping point which sees large numbers of people leave the scheme.
I’d be interested to know how important the Motability scheme is to the UK car industry. I hope the government have done that analysis because it is that they have gambled with to gain a small amount of political capital at the hands of disabled people.
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“I’d be interested to know how important the Motability scheme is to the UK car industry”
According to the interwebs, Motability accounted for for 20% of new car sales in the UK in 2024.
“Every time APs go up, if you’re anything like me, you say ‘oh that could be me out of the scheme’ but when you do the maths, it’s still the best way to run your car. These new rules though, change the scheme fundamentally and I feel that could be a tipping point which sees large numbers of people leave the scheme.”
I couldn’t agree more. Our lease ends this autumn and we are now very unlikely to get another car through Motability.
It was an act of mindless vandalism by the government. Legislation out of spite. It won’t affect the government’s welfare bill by a penny, but will harm the economy. And of course disenfranchise thousands of disabled people.
Both my PIP renewal and Motability ordering window are this year and after checking the catalogue of vehicles, I was genuinely gobsmacked to see how much cars had risen in AP.
Couple that with the email I got today outlining what you said on mileage and tyre allowance it’s really making it difficult to even stay on the scheme.
I currently drive a Cupra Born which was £1250 AP when I ordered it – now the base V1 is £2995! Granted there will be 2/3 catalog refreshes before December (that is if my PIP is renewed) but it’s genuinely limiting now of what cars people can get.
It seems to me that the Motability scheme relies on volume. Every time APs go up, if you’re anything like me, you say ‘oh that could be me out of the scheme’ but when you do the maths, it’s still the best way to run your car.
I agree with this to a point.
Yes it’s still the cheapest way but there needs to be a line drawn with how much AP you put down.
I’ve always been of the opinion of not spending more than ~£1500 because it’s simply wasted for a 3 year lease (if you intend to change), for the sake of £250 back in Good Condition Bonus.
Appreciate if you’re loaded or if they offered a percentage based on the value of your AP you put down in the first place but it really isn’t worth it.
Even when Motab offered high-end cars, it was a no-brainer to take it because it always worked out cheaper. Now, this is the first year I’m considering parting with the scheme, taking my allowance and getting a car of my own volition – especially with what’s on offer.
Ford Mondeo Titanium X - Ford Focus Zetec - Ford Fiesta Titanium X - KIA ProCeed GT Line S - VW Golf 8 R-Line - Cupra Born V2 2023/2024
The UK car industry will struggle. The garages have had a steady stream of low mileage 3 year old cars to sell on to the general public. If people leave the scheme, the supply will rise and then dry up.
The public looking for a 3 year old low mileage car will have to pay a lot more.
Not good for the UK Economy.
The mileage limits will be the thing that hit some people most and the excess mileage fee seems on the high side. It’s really not that hard to need more than 10k miles a year if you’re needing regular attendance at regional hospital this isn’t close to you. It would seem sensible to me for the scheme user to choose their mileage needs at the beginning of the lease and use those who need lower mileage to offset the costs of the higher mileage users.
I feel sorry for anyone who goes over the mileage allowance and legitimately has no means to pay the additional mileage fee (even if a withheld GCB covers 1000 miles)
The UK car industry will struggle. The garages have had a steady stream of low mileage 3 year old cars to sell on to the general public. If people leave the scheme, the supply will rise and then dry up. The public looking for a 3 year old low mileage car will have to pay a lot more. Not good for the UK Economy.
Agree
Now add this to the mix
Sep/so called Timms review ( imo already determined before it even started ) is due to conclude and its well known that he does not have any final say
( lol we could argue well that was a few million quid wasted then )
The final say we were told will be down to DWP head Pat McFadden ( lets not forget what he has said in the past and that he was cough cough phone loosing McSweeney right hand man.
My point is this PIP Qualifying criteria is one thing under the microscope and some can expect many as yet undermined changes imo
Everything else to one side as we are talking about the scheme
The outcome of the Timms review will imo have a bigger impact on the scheme/motor industry than all of the latest changes put together
We will see
Every time Motability place a new barrier to the scheme, lower milage, higher advance payment, higher cost per mile if you go over 10,000 miles a year! Less tyre allowance. Insurance excess up.
400% in excess milage!
50% less milage allowance.
Not exactly saying welcome to new members or keeping old ones on the scheme!
Basically offering less for more money. All negatives not one single positive.
PIP is not an out of work benefit, so many will need their Motability vehicle to travel to and from work.
Work 5 days a week, 20 miles each way = 200 miles a week x 50 that’s the 10,000 miles used up!
Every time Motability place a new barrier to the scheme, lower milage, higher advance payment, higher cost per mile if you go over 10,000 miles a year! Less tyre allowance. Insurance excess up. 400% in excess milage! 50% less milage allowance. Not exactly saying welcome to new members or keeping old ones on the scheme! Basically offering less for more money. All negatives not one single positive. PIP is not an out of work benefit, so many will need their Motability vehicle to travel to and from work. Work 5 days a week, 20 miles each way = 200 miles a week x 50 that’s the 10,000 miles used up!
I know crazy isn’t it and not thought out
The full implications and fall out from all of this is yet to be determined
My guess is it will be seismic and extend much further than just the scheme
I can see more phones going missing/lost lol when this all hits the fan
Me thinks the think tanks that came up with this sticky plaster idea needed to think a lot harder and for a lot longer
I know it’s hardly likely to land on his desk but I am writing to the CEO after having a web chat with motability this morning and the chap on there saying they are hearing a lot of customers who are less than amused by the mileage allowance and excess charge and that this feedback is being passed on.
I know it sounds all a bit Grange Hill uniform protest (yes I’m that old) but surely the more of us shout about it, bombard Motability with letters, emails etc, lobby our MP’s and generally shout about it maybe, just maybe some sense will prevail. A long shot I know but as I see it we have nothing to lose
I would be interested to see how many customers leave the scheme when these new rules kick in, and probably higher advance payments. From the limited research I have done, many PCP’s now offer better value than motability, provided applicants have a good credit score.
What @fwippers is saying is perfectly true. Under these new proposals, Motability will no longer be the cheapest option. Unfortunately for a lot of people, it’s the only option.
It’s almost like they’re using the enforced changes as a profit grab at the expense of the disabled.
They’ve got to pay for their gravy train somehow.
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