The Motability Scheme continues to offer good value for customers with its latest leasing packages, despite drivers across the UK facing rising motoring costs, due to external factors such as continued inflation.
The Scheme’s all-inclusive lease package provides customers with a new vehicle, insurance, servicing, breakdown assistance, tyre and windscreen cover- with fixed pricing guaranteed for the full three-year lease. This protects customers from cost volatility and allows customers to plan their finances over a long period, while selling the vehicles after three years ensures the best value, with sale proceeds put back into the Scheme.
Motability leasing packages remain cheaper than equivalent private lease options. In some cases, Advance Payments have fallen, and 53 vehicle models are now available with no Advance Payment at all.
However, due to increased costs and changes in the market, Advanced Payments have increased for some higher-cost vehicles due to wider market pressures, but the Scheme continues to offer strong value across its range.
Lisa Thomas, chief marketing officer of Motability Operations, which runs the Motability Scheme, said:
“The Motability Scheme gives disabled people the freedom to get to work, school, and medical appointments - helping them live independently and play an active role in society. The Scheme is life-changing for users and delivers strong value to the economy—generating £1.50 for every £1 of disability allowance spent. Scheme customers also work on average two days a week more than disabled non-Scheme customers.
“Our ultimate objective is to ensure that our customers have access to the right mobility solutions for years to come. While we are not immune to the rising motoring costs that drivers across the UK are experiencing, the strong relationships we have with manufacturers and partners mean we’re able to continue offering good value.”
Motability Operations has worked with partners to ensure a good range of choice on the Scheme. Today there is over 882 cars and more than 216 electric vehicles, helping customers make the switch if they want to.
Lynne W, Motability Scheme customer, said: “I first joined the Motability Scheme in 1996. It has been wonderful and had such a positive impact on my life - I’m no longer stuck at home day after day. The buses are hit and miss where I live but my Motability vehicle opened up the world for us. The Motability Scheme really does give freedom to disabled people like myself.”
Used car market and the rising price of insurance
After three years, Motability Operations sell the used cars on the second-hand market. This is the optimal age to ensure the best value, with the sale proceeds then funding new cars entering the Scheme. However, lower resale values seen over the last year mean less money is returning to the Scheme, impacting overall affordability.
The Motability Scheme also includes comprehensive insurance as part of its all-inclusive package. As insurance prices have risen across the UK, this has had an impact on overall Scheme costs.
According to the Association of British Insurers (ABI), the average cost of car insurance in 2024 was £622, which is 15% (£78) higher than in 2023.
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