Overview
- BMW, Mercedes-Benz, Audi, Lexus and Alfa Romeo will be removed from the scheme for new orders from December, with existing booked appointments allowed to place orders until 5pm on 30 November.
- From July 2026, VAT will be applied to advance or top-up payments on higher-spec vehicles and scheme insurance will incur the standard 12% Insurance Premium Tax, with vehicles specifically designed or substantially adapted for wheelchair or stretcher users remaining exempt.
- Motability is creating a special investigations unit with around 80 staff, expanding telematics and data‑sharing with authorities to curb misuse, after removing vehicles from 11,000 users over three years.
- Motability warns the tax changes could increase the average upfront cost of a three‑year lease by about £400, prompting a review of included services such as overseas breakdown cover.
- The scheme has pledged that at least half of vehicles will be UK‑built by 2035, as government and Motability emphasise a shift toward practical, affordable models for the programme’s roughly 860,000 users, with luxury models accounting for about 5% of the fleet.