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Well the day has finally come. After 5 Motability cars, we have handed the last one back (early termination) and left the scheme. There have been a number of challenges in the process of transitioning back from Motability to a private vehicle and, as quite a few people are leaving the scheme (or considering doing so when their current lease ends), I thought that it might be useful to share my experience, and what I’ve learned along the way, in the hope that it might help others.
There would be way too much info for a single post, so I will split the info across a number of posts covering the multitude of different issues that we faced.
In this first post I shall address the subject of Disabled VAT exemption. As you may know, Motability have a block VAT exemption on the basic vehicle cost of all cars purchased for the scheme. The rules for private new car buyers are more complex. If the disabled person is a full time wheelchair user and requires a ‘substantial and permanent’ adaptation to the vehicle then the car can be purchased VAT free. However, both criteria must be met. A scooter user, or someone who uses a wheelchair but only occasionally will not qualify. A permanent and substantial adaptation is something that is bolted into the car and / or the cars electrical system and cannot be easily removed. My wife is a full time wheelchair user and requires a person hoist, so we qualify for VAT exemption on a new car (once every 3 years max).
Initially when I looked into this issue I interpreted the guidance as meaning that the car had to be registered in the name of the disabled person. This is not the case. A nominated driver (myself in this case) can purchase the car with their own money ex VAT and have the car registered in their own name, as I have done. There is a simple 2 page self declaration that you fill in and hand to the supplying dealer. This form has a section which allows you to state the nominated person if it’s not the disabled person.
The next issue is that, as with Motability, the rules suggest that the car can only be used for the specific benefit of the disabled person. This is to deter abuse but, as with Motability, there is some discretion on this. I was very up front with HMRC and had the same conversation with them as I’d had with Motability a few years earlier. I explained that as we are retired and my wife cannot drive, we only need one car. Consequently, there are regular occasions when I use the car for reasons that are not for my wife’s direct benefit, such as visiting family and friends etc. They assured me that this is absolutely fine but, for peace of mind, I got them to put this in writing for me, which they kindly did.
There is a very good helpline for VAT exemption enquiries – HMRC Charities Helpline tel 0300 123 1073 (0900-1800 M-F).
The final issue with VAT exemption is that, for reasons that are beyond me, not all car dealers will allow VAT free purchases. I live between two main BMW dealers. One will process VAT exempt sales and one won’t. Guess which one got my business?
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Next I shall cover the issue of Vehicle Excise Duty (Road Tax) Exemption. If you are eligible for a Motability car then you are eligible for free VED on one private car instead. This exemption applies not only to the base car tax, but also the expensive vehicle (over £40k) premium and, most significantly, also the first year VED (showroom tax).
As with the VAT exemption, the car does not need to be registered in the disabled persons name. It can be applied to a car owned by a nominated driver.
In order to apply the VED exemption you need a ‘Certificate of Exemption’, which is supplied by the DWP. If you have a Motability car this will have been used by Motability, so you won’t have one. This is where the fun starts.
As the car that I have bought privately is a high performance petrol car, the first year VED (showroom tax) is £5,690. Without the exemption certificate, I would have had to pay this in full, in addition to the cost of the car, and then reclaim it from DVLA once the DWP had confirmation that we were no longer in possession of a Motability car. However, this process can take a couple of months and I didn’t want to risk DVLA only refunding me full months remaining when they finally got around to it, given that each month would cost me £475.
In order to avoid this, I called Motability two months before I expected to take delivery of the new car and voluntarily paid 12 months VED on the Motability car, at a cost of £640. When the car is returned DVLA refund on a pro rata basis remaining full months. Each month equates to around £50, so you can see why I’d rather end up paying for 2 months tax on the Motability car than even a month on the private car!
Motability were brilliant with this. They have a tried and tested process, given that many Motability customers have multiple cars in their household and use their VED exemption on the car with the most expensive rate. Within a couple of weeks we received a letter from Motability confirming that the taxation class had changed and we were now liable for the VED on the Motability car. However, DVLA systems take a further 4-6 weeks to update.
When I called the PIP Helpline (tel 0800 121 4433 open 0900-1700 Mon-Fri) to request the DLA404 Certificate of Entitlement of PIP for VED exemption, they refused to issue one “because we had a Motability car”. I explained that we were now paying the VED on the Motability car, so were entitled to one, but it was a case of “computer says no”. I tried again a few weeks later and had the same response. Finally, I left it until the date that the DVLA system should have updated and called again. This time I wasn’t taking no for an answer, so when I was refused yet again I asked for it to be escalated. After 90 minutes on the phone, speaking to (and on hold with) various people, they agreed to send us the form and it arrived the next day.
Obviously it wasn’t helped by the fact that the first year VED on our new car is enormous, but this was the most stressful aspect of the whole process of moving away from Motability. Thankfully, for each car that we purchase in the future we won’t have the same issue and it should be a very straightforward process.
The next issue that I’d like to cover is the subject of negotiating a discount with the dealer. Even though we were getting a huge reduction with both VAT and VED being exempted, I knew that there was absolutely no reason why we shouldn’t also be able to negotiate a big discount on top of that. It’s worth noting that the discounts quoted by the likes of Car Wow and What Car? are not the full picture, as they take a cut. You can do significantly better yourself. A site that I use is Drivethedeal. This is a brokerage site that allows you to spec a factory order to your exact specification and it tells you the best deal that a main franchised dealer will offer. They only use certain manufacturers (Audi, BMW, Cupra, Kia, Renault, Seat, Skoda and Volkswagen) but discounts are usually in the 10-25% range.
Having priced up my chosen car to my exact specification, I went to my local BMW dealer armed with the discount. I asked if they could beat it (no harm in asking), which they couldn’t, but they matched it. As a result of the discount that I negotiated, plus the VAT and VED exemptions, the total discount that we secured on the new private car was very nearly 40%. Two year old examples are selling for more than we are paying for a brand new car to our exact specification.
Adaptations – For those who need adaptations, and are perhaps nervous about leaving Motability because of them being subsidised, our experience here may also be of interest. We have a ‘Person Hoist’ to lift my wife in and out of the car from her wheelchair. Retail price is, from memory, around £3k, which Motability subsidise down to £795. Other than the mounting bracket and electrical connection to the car, all the kit (hoist arm, extension bar, sling & storage bag) is removable, so as we had paid £795 for it and Motability don’t supply used equipment, rather than let them bin it I decided to retain the kit and just pay for a new bracket to be installed in the new private car. This cost me a total of £620. I didn’t intend to inform Motability but interestingly when I called them about the early termination they only mentioned the need to return the car with two keys and the charging cable. The lady said “I see that you have an adaptation, but you paid quite a bit for that so I guess you will be keeping it?”, so there is no requirement to return the adaptation anyway.
Insurance, finance and extras.
As a Motability customer, you do not accumulate No Claims Bonus. However, Motability’s insurers will provide a ‘driver claims record’ which many insurers these days will treat in the same way. Be warned that you can only request one of these records per policy year, so don’t request one until you need it or it may be out of date. I was pleasantly surprised at how affordable the insurance was, especially for a very high value car in the highest insurance group. One advantage of getting older I guess!
I have bought our new car outright, but as this isn’t possible for many people it’s worth keeping an eye on manufacturers finance offers. In a little known loophole (that I have exploited 2 or 3 times), you can take out finance (PCP etc) to gain an additional discount, but you can pay off the finance in full after a month or so and still retain the finance discount. For a cost of around £20 interest I have saved many thousands of pounds each time I’ve done this.
There are also deals to be had on servicing packages, but do the maths. I negotiated a discount on a 5 year servicing package which is transferable to the next owner if I sell it sooner, so increases the residual value. In addition, servicing costs on cars purchased ex VAT are also VAT exempt. As a result of both discounts I got almost 40% off.
All new cars are covered by at least a 3 year manufacturer warranty, so no worries there, and the warranty cover almost always includes breakdown cover as well. By paying at the time of new vehicle purchase I have got a good deal on an extended warranty (taking it from 3 to 5 years) and as the car has 22” wheels and the tyres cost around £350 each, a 4 year policy covering tyres and alloy wheel damage for £510 seemed good value for peace of mind.
One thing that I declined at the dealers was ceramic coating. The dealer wanted £1,295 whereas I have found a local detailer who has his own premises and has great reviews who is going to do it for £550, and that’s with a 3 year warranty.
I feel some really good advice will be appearing in these posts. Thank you for taking the time.
I hope that one post will include pics of the new car? Oh and congrats on the new car.
I suspect the individual dealerships will have a concern about the additional paperwork and non standard financial treatment of such transactions. In short, they’re too lazy to do what’s needed for a small number of sales. From memory and solely from the accountant’s viewpoint, there will need to be additional evidence stored and provided for each exemption that will need recording as an exempt vehicle and the servicing will need linking to that exemption. All this requires 7 years of record keeping. Then there’s a more complex return on quarterly and annual VAT returns, listing sales exempt and the total value of these sales (vehicles, parts and labour) these transactions and purchases of items related are treated differently. If the accounting are limited in either time or knowledge, the view could simply be that it’s best to simply not bother. Especially as suitably trained staff could prove more expensive and that’s in non-contributing areas of the business.
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.Mark
Final Thoughts
For those who are happy with an EV, can live with the restrictions in choice of vehicles and manufacturers and don’t do high mileages, I still think that Motability remains an attractive option, even after the July changes (BTW, my personal view is that APs won’t all go up by 20% on 1st July – I think that Motability have offset some of the VAT hit by the already announced other restrictions – mileage cap, excess mileage rate etc). We may return to the scheme in the future as we get older and if we get to the stage where cars just become a means of getting from A to B but, for now, we are off to enjoy a car that we ‘want’ rather than something that we are ‘allowed’.
I think that’s most things covered. It’s been hard work at times, but well worth it to be in a car that I love and won’t have to hand back with nothing to show for it after 3 years. Subsequent purchases will be much easier than this time. It’s also nice to be free of all the restrictions that Motability have now imposed and to drive what we really want, not a compromise car that we are ‘allowed’. In truth, it will also be good to be free of the stigma that sadly goes with having a Motability car these days. I shall still retain an active interest in the Motability scheme and will continue to defend it when I hear people spouting nonsense about it. I’m happy to answer any questions.
I feel some really good advice will be appearing in these posts. Thank you for taking the time. I hope that one post will include pics of the new car? Oh and congrats on the new car. I suspect the individual dealerships will have a concern about the additional paperwork and non standard financial treatment of such transactions. In short, they’re too lazy to do what’s needed for a small number of sales. From memory and solely from the accountant’s viewpoint, there will need to be additional evidence stored and provided for each exemption that will need recording as an exempt vehicle and the servicing will need linking to that exemption. All this requires 7 years of record keeping. Then there’s a more complex return on quarterly and annual VAT returns, listing sales exempt and the total value of these sales (vehicles, parts and labour) these transactions and purchases of items related are treated differently. If the accounting are limited in either time or knowledge, the view could simply be that it’s best to simply not bother. Especially as suitably trained staff could prove more expensive and that’s in non-contributing areas of the business.
That’s a useful insight Mark and helps me understand why some dealers refuse to do VAT free sales. Thankfully the BMW dealer that I have now used 3 times (2 private purchases and 1 Motability car) didn’t bat an eyelid. Much to my surprise (given the amount of VAT that I was saving) this was one of the easiest aspects of the purchase. The VAT declaration was dead simple and took me all of around 3 minutes to complete!
Excellent information @Glos Guy
Just to add re: Waiting times for DVLA to issue new V5 when you change taxation class to disabled tax. I received my new V5 last week and it took exactly 3 weeks to receive mine so maybe the time wait has improved slightly. I was also told by the post office there was 4-6 week wait when i submitted my disabled tax application.
Some very useful information
We are awaiting delivery for a Tesla model 3 PCH deal as in the Tesla deal post, the mobility vehicle we have is in my wife’s name as the recipient of pip with me as the named driver .
The Tesla will be leased through Lex autolease which covers the excise duty in the deal as for service costs the vehicle has a good warranty and the lease is for 2 years so no MOT due and hopefully no tyre problems
As for insurance i will be asking for the proof of driving records mentioned by the OP and like you say surprisingly reasonable quotes
Hopefully our delivery date of August/September will tie in with our mobility lease hand back date of 3rd October
Happy and safe motoring in your new ultimate driving machine
"the world is full of kings and queens who blind your eyes and steal your dreams-its heaven and hell "(RJD)
Peugeot 2008gt
Selenium greyExcellent write up @Glos-Guy!
Smart move going to a proper qualified detailer – not only are they cheaper, the standard of work & materials will be far superior.
Really happy for you 🙂
Excellent write up @Glos-Guy! Smart move going to a proper qualified detailer – not only are they cheaper, the standard of work & materials will be far superior. Really happy for you
Thanks @kezo The reviews were great for the detailer, but I drove up to his premises to check him out and he was a really nice guy and in good premises (all the kit and detailing lighting etc). He was working on a black Mercedes (the worst possible colour that I’d never get again!) and even though it was quite a few years old he had it looking brilliant.
If you’ve had a full ceramic coating he offers a monthly maintenance wash and clean for £42 which he will do at my house. Given that our nearest hand car wash is a 15 minute drive each way, costs £15 and won’t be to the same standard, I think I’ll go with that as well. It’s an expensive asset that I’d like to look after!
Hopefully n8w, you can start your own forum “Not Mobility Car” and stop regailing oeople who come on here to discuss Motability provided cars.
Seems you used motability for cheap BMW leasing and when that was removed, you threw teddy in the corner.
The fact you can buy a crappy nazi supporting, British jobs killing BMW and are just a sad badge bunny who wants his reps car on his drive, means you shouldn’t have had a motability car in the first place.
FFS southamman wind your neck in.
What can be of benefit to those of us buying used cars and being disabled. Is it only free car tax, any other benefits?
And finally, enjoy the new wagon!
Wow, somebody really had a terrible night trying to sleep in the heat!
Seems like it, maybe he should have a read of the air conditioning thread over on off topic.
Daughters motability car Hyundai Tucson Ultimate self charging hybrid Serenity White Moss Grey interior.
My car SEAT Ibiza SE Tec 1.2 petrol TSI 2017.Excellent write up @Glos-Guy! Smart move going to a proper qualified detailer – not only are they cheaper, the standard of work & materials will be far superior. Really happy for you
Thanks @kezo The reviews were great for the detailer, but I drove up to his premises to check him out and he was a really nice guy and in good premises (all the kit and detailing lighting etc). He was working on a black Mercedes (the worst possible colour that I’d never get again!) and even though it was quite a few years old he had it looking brilliant. If you’ve had a full ceramic coating he offers a monthly maintenance wash and clean for £42 which he will do at my house. Given that our nearest hand car wash is a 15 minute drive each way, costs £15 and won’t be to the same standard, I think I’ll go with that as well. It’s an expensive asset that I’d like to look after!
Those £15 hand was guys are no different to you or me getting a bucket and some gear and washing the cars on your estate – good enough for a Motability car if you can’t be arsed yourself! Though I expect they would want more cash for a large car..
I don’t know how far you want to go with protection, but have you considered a combination of self healing PPF on high impack zones (areas susceptible to stone chips) and ceramic on the rest?
Although I am still awaiting the Ombudsman’s decision, should the outcome ultimately go against me and I decide to leave the scheme once the matter has been resolved, my leading candidate will be a used Lotus Eletre, with a budget of £55,000–£60,000.
Would anyone recommend having the ceramicprotection, and if so, what type of protection would you suggest? I have noticed there are several options available, with prices ranging from reasonable to quite eye-watering (polite way to say it).
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Apologies for briefness and spelling mistakes.Motability Skoda Enyaq SportLine 85x April 2024 (unhappy customer - Ombudsman pending)
Motability Mazda CX-60 PHEV July 2023 (unhappy customer - early termination on mechanical grounds)
Motability VW Touran Family Pack May 2019 (happy customer)@Southamman Yes, I don’t drive German cars for the same reason / feeling: I was very uncomfortable with VW on the scheme and never returned to the German vehicles since despite the car itself was great.
I do think it would be beneficial to have a separate discussion for life beyond Motability, including deals and offers outside the scheme.
That said, I would strongly recommend using rather different language there – more akin to what one would naturally use in a face-to-face conversation, without the risk of being thrown under the bus within five seconds.
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Apologies for briefness and spelling mistakes.Motability Skoda Enyaq SportLine 85x April 2024 (unhappy customer - Ombudsman pending)
Motability Mazda CX-60 PHEV July 2023 (unhappy customer - early termination on mechanical grounds)
Motability VW Touran Family Pack May 2019 (happy customer)Škoda is a wholly owned subsidiary of the Volkswagen Group.
Indeed. And yet mentally, for someone who’s grandparents fought for their lives and were lucky to survive face to face combats, it seems I still have an issue with the brand. My children don’t, by the way: will readily drive Mercedes-Maybach.
Sent from a mobile device.
Apologies for briefness and spelling mistakes.Motability Skoda Enyaq SportLine 85x April 2024 (unhappy customer - Ombudsman pending)
Motability Mazda CX-60 PHEV July 2023 (unhappy customer - early termination on mechanical grounds)
Motability VW Touran Family Pack May 2019 (happy customer)Hopefully n8w, you can start your own forum “Not Mobility Car” and stop regailing oeople who come on here to discuss Motability provided cars. Seems you used motability for cheap BMW leasing and when that was removed, you threw teddy in the corner. The fact you can buy a crappy nazi supporting, British jobs killing BMW and are just a sad badge bunny who wants his reps car on his drive, means you shouldn’t have had a motability car in the first place.
Firstly, the “off topic “area of the forum, is a place where you can talk about everything and anything, even ingrowing toennails if you want!
BMW alone can’t be responsible for Rover groups collapse, which had already started by mismanagement, underinvestment, and failed corporate strategies by British Aerospace. Then there was Phoenix Venture Holdings, that put the final nail in the coffin, along with succesive governments.
Rolls Royce (a long story) under BMW ownership, who had to remake from the ground up, through a mishmash with VW and of course Bentley was sold to VW as a stratigic move by both Bentley and VW,
But, don’t let that stop you having a Nazi owned Skoda or an Indian Owned Range Rover you talk so gracefully of on the forum!
Perhaps most important and beneficial to all, go and get yourself some lessons in attitude management!
1. Rolls Royce (Chichester) : I remember what huge benefits the British workers had from BMW: not just the car (Series 1 for a wife and the analyst I knew, himself had Series 3), but they also covered BiK payments for them both.
2. McLaren (Woking): the British workers had Mercedes (can’t remember what the guy was driving) and what a food they had on site even for us, suppliers.
Sent from a mobile device.
Apologies for briefness and spelling mistakes.Motability Skoda Enyaq SportLine 85x April 2024 (unhappy customer - Ombudsman pending)
Motability Mazda CX-60 PHEV July 2023 (unhappy customer - early termination on mechanical grounds)
Motability VW Touran Family Pack May 2019 (happy customer)Insurance, finance and extras. As a Motability customer, you do not accumulate No Claims Bonus. However, Motability’s insurers will provide a ‘driver claims record’ which many insurers these days will treat in the same way. Be warned that you can only request one of these records per policy year, so don’t request one until you need it or it may be out of date.
@glos-guy Firstly, that was an incredibly useful and informative thread. With regards the ‘Drivers Claim Record’. I’ve not requested one yet and my 3 years are up end of September. If I requested a Record before my next lease, will it cover all three years of my current lease?Hopefully n8w, you can start your own forum “Not Mobility Car” and stop regailing oeople who come on here to discuss Motability provided cars. Seems you used motability for cheap BMW leasing and when that was removed, you threw teddy in the corner. The fact you can buy a crappy nazi supporting, British jobs killing BMW and are just a sad badge bunny who wants his reps car on his drive, means you shouldn’t have had a motability car in the first place.
Still as nasty as ever I say god luck to floaty I hope he stays on the forum
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
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