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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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Congratulations and many happy miles and memories to be made. I have been enjoying having my own car and being able to have dash cameras properly hard wired and vehicle ceramic coated. As currently i do not require any adaptations, i was not elegible for the VAT exempt on purchgase price. But i do have my VED exemption which means i avoid the large tax applicable to new cars above a certain amount. Also registered for Tyne tunnel exemption etc. Ignore the infantile comments and stick around, as advice you can give is invaluable. Now 9 months out and 13k miles done here.
Cars On Motability
2009 Citroen C4 Grand Picasso
2012 Vauxhall Antara
2013 Skoda Superb Estate
2016 Seat Alhambra
2020 Seat Tarraco
2021 Ford Kuga
2024 Nissan X-Trail left in Sep 25Having worked in the Corporate Leasing Industry for almost 30 years I can very clearly see that the Government is pricing the scheme such that the majority of users will seek to obtain transportation elsewhere.
It is obvious to me that the scheme will be scrapped within a few years at best. If I worked for Motability I would be updating my CV as a priority.
We rang 3 Mercedes dealerships today. One wouldn’t discuss. The other didn’t know what it was and said we probably wouldn’t qualify and kept saying they’ve left Motability. Added they wouldn’t do it and no other Mercedes dealership would. Also said a certain model, that we hadn’t mentioned, can’t have a boot hoist. The adaptions company already said they’ve fitted one to that model before incidentally as an example of models they know they can do in case they couldn’t do my no1 choice. When we said we’d cancel our test drives then she suddenly became more agreeable and said she’d try to find out more (my partner is also looking at a non adapted car on pcp).
Rang another after as luckily we live within 40 minutes of 5 Mercedes dealerships. Absolutely no problem. They had not done it but knew someone who had and they’d speak to them. They also said theyd worked with the adaptions company already.
Without reading your thread we would’ve given up and gone for a non ideal used car so thank you again.@bluewheels I am delighted to hear that this thread has resulted in you getting your desired outcome, as that was always my intention.
HMRC had told me that BMW and Mercedes dealers were playing awkward with VAT exemptions. Between us, we have at least found one local dealership each that is willing to play ball. I would have happily bought a used car, but being able to buy a new one at a used price is definitely preferable! Good luck with your Merc.
I wonder if anyone can speak on getting the vat reduction on the AP and how easy it is with dealers I might call in tomorrow to a dealership and enquire and see what they say
I wonder if anyone can speak on getting the vat reduction on the AP and how easy it is with dealers I might call in tomorrow to a dealership and enquire and see what they say
Knowing how slow Motability have been with announcing the changes, I wouldn’t be at all surprised if they haven’t briefed dealers on this yet. However, you would hope that they will come up with a very straightforward process, as there will be many thousands of people needing to have the VAT deducted.
Considering the two dealerships i went to seems confused on how to add adaptations and my general process i have no hope. I am lucky I got my car sorted back in Q1 but I want to call to make sure theres actual training, though mind you they’ll likely be people that are fully entitled to vat reductions but because the dealers haven’t been trained or maybe cant be bothered to do paper work will not ask for teh vat to be reduced.
Not sure if it’s a lack of training when it comes to adaptions and MB dealership reps as in my case it was a story of the dealership / Motability online systems saying “The computer says no”?
Last November I ordered a Ford Kuga and a Lodgesons R207 remote control and was told the R207 was not showing on the system so may not be compatible, I said I’ve already check with the adaption installers and its fine says I but sorry the computer says no. It was fine and just a computer glitch, well that’s their excuse anyway.
@kezo @MFillingham @NosherN @BigDave @Winston A number of you have been asking me to post some photos of the new car (apologies if I missed anyone). I haven’t had it ceramic coated yet (it’s being done Tuesday) and it’s a bit difficult getting decent angles at home as it’s a building site at present, but I’ve done my best, including some close ups as requested by @kezo
Lovely car mate 🙂
Admittedly, was a bit unsure of the colour when youn first said, but absolutely looks fab on my 4k screen at showing the tones in different lighting scenario’s. Will look better still when coating done.
Although limeted tyre choices at 22″, I think it was the right move over 20’s with rideheight up.
That is a thing of beauty my friend 😍
im liking the interior colour too, goes great with the outside colour
I know it’s early and you might just be easing it in a little but what are your first impressions of it then? Have you sat at the traffic lights accross from another “quick” car and thought 💭 “I’m having you mate” 😬🤣🤣
How’s Mrs Gloss finding it? Have the kids insisted on being on the insurance and took it for a spin?
So many questions I know I’m sorry ha
I would be parking that car as far away as I could from all that building work! 🫣 and warning all the workers that anything heavier than a feather lands on that car and its back to medieval times with Impalent as the punishment 🤭
looks mint mate, must put a smile on your face when leave the house and see it sitting there
Congratulations mate 💪🏻😎🚗
wishing you lots of happy and safe travels in it 🙌🏻
and now I’m logging off and going to sleep cos it’s now 2-0 to England 😭😭😭😭🤣
When life hands you melons...,
Make melonade!@kezo I was also unsure about the colour (Manhattan) as I was set on getting Marina Bay Blue, which is unique to the V8 M & M lite models. However, Mrs GG has an irrational and intense dislike of blue cars (unless they are almost Navy) whereas she absolutely loved Manhattan when we first saw it in the flesh. I assumed that it must be a BMW Individual colour, as it looked absolutely nothing like how Manhattan looks on the configurator (frankly nobody would choose it based on the configurator rendition)! The M60i that I had on test was Marina Bay Blue and it was a flatter colour than I’d expected and really showed the dirt badly, so I succumbed!
It’s been interesting that of the 20 or so people who have seen it so far (family, friends, builders – male and female – all ages from my 24 year old nephew to my 86 year old mother), with every single one of them, without exception, the first thing that they have all said is how much they love the colour! What you can’t see from those photos is the intense metallic flake in it, which gives it a real depth and chameleon like quality. In dull light you’d just glance at it and think it’s grey, but in sunlight it’s very different and takes on different colours. After it’s been ceramic coated, I’ll try to get a close up photo of the paintwork in sunlight to show you what I mean.
@Winston As with all BMWs, it’s a joy to drive, but of all the cars I’ve had (including some fairly powerful ones), this one is on another level! It’s the first I’ve had with an M division performance engine, and they have an electronic limitation for the first 320 miles, where only three-quarters of the power is available. I’m through that now, but even during it there was no lack of oomph! However, you are meant to keep revs below 4,500 rpm for the first 1,200 miles and not use kickdown, so I’ve not used the full performance yet. However, with 530 hp and 750nm torque it pulls like a train at all speeds and the performance is insane for a 2.5 tonne SUV. BMW always understate performance figures and this one is no exception. They quote a 0-62 time of 4.3 seconds, but several car reviewers have tested it using launch control (which I’m too cowardly to use) and achieved figures closer to 3.5 seconds. What I have tried is ‘Sprint Mode’ which, thanks to a short boost of an additional 30hp from the mild hybrid setup, gives insane acceleration. I demonstrated this yesterday to my brother in law and Nephew and they both howled with laughter as they just weren’t expecting that sort of acceleration!In truth, what I like most is the Jekyll and Hyde character of the car. In Comfort or Eco Pro mode, it’s dead quiet (lovely V8 rumble aside) and is like the 7 Series that I had, in that it’s a refined luxury car. However, stick it in Sport or Sport Plus mode and it’s a different car altogether. The sports exhaust system activates, the car automatically lowers, the suspension stiffens, the steering weights up and the gears are held longer. The combination of performance, feel and sound leaves you in no doubt that you are driving a car with a BMW M engine. It’s immensely enjoyable but licence threatening and can be a bit scary for more timid passengers (such as Mrs GG) 😂
It’s parked in the garage when not in use, so out the way of the builders! My youngest daughter would be far too nervous driving it. My older daughter would have no issue as she’s a Police officer and was in response for 4 years driving all sorts of cars, but when I checked it added a few hundred quid to the policy so I didn’t add her as, in reality, she’d never really drive it!
Hi Glos guy, thanks for this thread. Was very useful. I’m thinking of doing something similar. I had some questions regarding the adaptions if you had some advice for me. I’m looking for something similar to you, the vehicle person hoist. Does this need to be installed to the car before you collect it? How do you organise this with the dealer? Or can you fit it afterwards?
Thanks!
Hi Glos guy, thanks for this thread. Was very useful. I’m thinking of doing something similar. I had some questions regarding the adaptions if you had some advice for me. I’m looking for something similar to you, the vehicle person hoist. Does this need to be installed to the car before you collect it? How do you organise this with the dealer? Or can you fit it afterwards? Thanks!
Hi. I’m pleased to hear that the thread has been useful for you. If you, or the disabled person that you care for, are a full time (or near full time) wheelchair user and you need a person hoist to be installed, then you should be able to buy a new car VAT free. In order to qualify, the adaptation must be fitted before the car is registered. You cannot claim back the VAT once it has been paid, so if you have the adaptation fitted after you take delivery, or on a second hand car, you will only get VAT exemption on the adaptation itself and not the vehicle.
Most dealers will have a relationship with an adaptation company that you can use, or you can arrange it yourself (as I did). Hope that helps?
Nice car, I like the interior color, the exterior is similar color to mine, which doesn’t excite me much in mine.
@kezo Just collected the car from the detailers. I see what you mean about the difference it makes having it done professionally. I must confess this is the first time that I’ve ever gone down this route. The finish is like glass and the metallic flake really pops. The wheels look fabulous as well, although even in just the 3 miles back home they picked up some dust 🙄. I can see that they are going to be very high maintenance!
Makes it pop alot more however, on the rear quarter and far less so n/s front wing, is that dust/reflection or polishing marks?
Thanks for your reply. How did you arrange it yourself prior to the sale of the car? Does the dealer have to put the adaption on the same invoice for it to work?
Thanks for your reply. How did you arrange it yourself prior to the sale of the car? Does the dealer have to put the adaption on the same invoice for it to work?
It’s distorted reflections off the mirror finish. There’s not a mark on it 👍
It’s distorted reflections off the mirror finish. There’s not a mark on it
Thats good after spending that money😂
You said you got wheels done, glass as well?
Does look smart though profesionally applied than dealer applied stuff over uncrrected paint, with bits missed here and there..
It’s distorted reflections off the mirror finish. There’s not a mark on it
Thats good after spending that money
You said you got wheels done, glass as well? Does look smart though profesionally applied than dealer applied stuff over uncrrected paint, with bits missed here and there..Yep the whole car, inc wheels, glass, plastics etc. The only thing he could find was a tiny stone chip which, thankfully, is on the underside of a side sill. The fact that he spotted it made me appreciate how thorough he was!
Thanks for your reply. How did you arrange it yourself prior to the sale of the car? Does the dealer have to put the adaption on the same invoice for it to work?
Apologies. I inadvertently replied to a different post quoting this one 🙄
Yes, the adaptation work has to show on the vehicle invoice for the VAT exemption to apply to the whole car.
I contacted the chap who fitted the adaptation to our Motability car and arranged it directly with him. In our case, he just needed to fit a new bracket and wire it all in (turned out to be a big job due to the battery being at the back of the car). We retained the actual hoist, extension arm, sling and bag from the Motability car (adaptations, or parts thereof, don’t have to be returned with the car). He didn’t do anything to the Motability car. We returned it with just the bracket and internal wiring left in it. Pro rata Advance Payment received with no deductions 👍
A very interesting & thought provoking thread GG, and I don’t blame you, in your particular situation, for going down this road, and had I been younger, and looking for another change/renewal in the not too distant future, i may very well have taken the same journey , as there are clear advantages outlined in your posts and others too.
However, this journey is not for everyone, and as a former banker and banking director, I would advise caution for many who may now be thinking of joining you, and i know that I have mentioned this on more than one occasion previously – I.e. the ability to raise credit?
Motability leases are not ‘credit checked/searched/income assessed, as there is , ostensibly, a certainty of payment via a Government Department, and there is no doubt that a high number of Motability customers, through no fault of their own, would not get through the checking procedure if following your journey?
Motability is and has been a godsend for very many people, and long may it continue to be, but as you have proven, for others there may indeed be a better path to follow.
@Mike700 Wise words. In my case I bought the car outright with no finance. Although I’m fortunate that my pension income is such that I’d have no issue raising finance, and my credit score is high, I didn’t need to go down that route.
The sole reason that we left Motability was because the car that we wanted is not (and would never be) available through Motability, and we no longer wanted to compromise. As previously stated, the only reason that we bought new was because we could get the VAT & VED deducted, plus I negotiated a massive discount on top of that, meaning that we ended up paying the price of a 2-3 year old model for a brand new car. Had we not qualified for all of these discounts I would have bought second hand, as the first year depreciation is not something that I’d want to suffer!
@Glos_Guy the detailed car looks fantastic. I used to work with a guy who had his car done every 6 months, he has an Alfa which is a lovely deep red and that positively glowed after a thorough going over.
Did the detailer give you advice for ongoing maintenance?
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
You said you got wheels done, glass as well? Does look smart though profesionally applied than dealer applied stuff over uncrrected paint, with bits missed here and there..
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