How does the Motability Scheme work?
It’s really important to clarify how the Scheme actually works and how money is used — because it’s often misunderstood.
Buying the vehicle
When we lease a car to a customer, we have to buy that vehicle upfront.
But that money doesn’t come from the customer’s allowance or from taxpayers directly — it comes from borrowing, and we raise that through issuing bonds. In fact, the Scheme has borrowed billions to fund these vehicle purchases.
Using the vehicle
The customer’s mobility allowance then covers the cost of the lease – including depreciation – over the term of the agreement.
Selling the vehicle
And when the vehicle is sold at the end of the lease, the proceeds go straight back into the Scheme to repay a proportion of the debt used to buy it in the first place.
And if there’s any surplus left over, it’s reinvested to support disabled people.
In summary
So yes, customers use their benefits to access a car and that covers the cost of the lease and the other services that disabled individuals receive like insurance and roadside recovery – but the vehicle itself isn’t bought using taxpayer money.
Any surplus left at the end of the process is reinvested and not returned to shareholders.
