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Introduced in the 1970s, the Motability Scheme offers eligible drivers simple, all-inclusive leasing in exchange for their mobility allowance.
It effectively allows drivers to enjoy a high-quality car complete with servicing and insurance, without the usual costs of car ownership. You can also have up to three named drivers as part of the lease so your friends and family can support day-to-day activities.
Following the autumn budget 25/26, some premium brands have been removed from the scheme which has caused concern around what cars are now available. However by choosing a trusted car retailer such as Pulman, you’re still guaranteed to find premium options without the premium price tag.
In this blog we’ll be outlining what the Motability car scheme is, what changes to expect, and the premium choices at Pulman. You can also pop into any Pulman showroom and discuss this in more detail with a member of our team.
The Motability Scheme is a government-backed programme in the UK designed to help people who receive a disability allowance lease a car, scooter, or powered wheelchair.
The aim behind it is that disabled people can afford a good-quality car from a participating manufacturer, complete with the peace of mind that it is fully insured and serviced. The scheme also extends to their friends and family, helping them support their independence.
It was founded in 1977 by Lord Sterling of Plaistow, a British businessman, and Lord Goodman, a prominent lawyer and Labour peer, and serves as a partnership between the UK government, charities, banks, and the motor and insurance industries.
Eligibility Criteria:
The Motability Car Scheme is open to anyone in the UK who receives one of the following disability benefits:
You can find out more information here.
Participants in the scheme exchange their mobility allowance to lease a vehicle. Some more premium vehicles require an additional non-refundable lump sum called an 'Advance Payment'. At Pulman, we’re helping customers make the most of the Motability Scheme by offering premium brands without the premium price tag.
Get the Škoda Enyaq on the Motability Scheme with a low Advance Payment, despite a retail value of around £38,000.
Enquire About the Škoda Enyaq Here
Following the Autumn Budget 25/26, the UK Government announced several tax and cost-related changes that will affect how the Motability Scheme works.
It's important to highlight that most of the changes shared are not happening immediately and the Scheme continues to operate as normal until July 2026.
Tax changes and costs
The main changes involve tax, as from July 2026, VAT will be applied to Advance Payments on Motability car leases, and Insurance Premium Tax (IPT) will also be added to certain leases. As a result, these changes increase the overall cost of running the Scheme.
Vehicle choice and brands that have been removed
One of the biggest updates is the removal of some premium car brands such as Mercedes-Benz and BMW. This decision reflects a renewed focus on practical, affordable mobility.
Despite this, there is still a wide choice of cars available, including hundreds of vehicles across around 30 manufacturers, many with low and zero Advance Payments. This includes cars at Pulman including:
Electric vehicles and future road taxes
Under the scheme, there are no immediate changes to electric vehicle costs. A proposed pay-per-mile tax for electric vehicles will not come into effect until April 2028 at the earliest and no other details have been shared.
Road tax also remains unchanged for Motability Scheme customers following the Budget.
Reviewing the Motability Scheme ahead of 2026
There is a broader review of the Scheme being carried out to ensure it remains sustainable and affordable in the long term. This includes looking at areas such as mileage allowances and operational efficiencies.
In the interim, customers can continue to order or renew vehicles as normal, and existing leases and payments will not change.
While some high-end brands like BMW and Mercedes-Benz have been removed from the Motability Scheme, you can still get high-quality vehicles that offer the same features associated with a premium driving experience.
Furthermore premium extends beyond the brand and logo as it’s about the experience behind the wheel. Features such as advanced technology, comfortable seating, and refined handling can make a car feel premium. Many of the vehicles still available on the Motability Scheme are packed with features that improve both comfort and convenience.
Electric vehicles are increasingly part of the Motability Scheme, offering a quiet, smooth ride with modern technology. For instance cars such as the Škoda Enyaq combine style, performance, and practicality, giving drivers a premium car without the high price tag.
At Pulman, we stock brands such as Volkswagen, CUPRA, and Škoda - all of which are stylish, well-equipped, and refined, giving Motability customers the sense of quality they’re looking for.
Below is some further information on the quality brands we stock at Pulman which are available on the Motability Scheme.
Volkswagen is renowned for its reliability, refined driving experience, and high-quality interiors. Several models are available on the Motability Scheme, including:
CUPRA focuses on sporty design and dynamic performance with a range of vehicles that feel exciting to drive. Despite this, they remain practical for everyday use and are a popular with families.
Motability Scheme options include:
Škoda is known for practicality, spacious interiors, and great value, making it ideal for Motability customers who want style and comfort.
Motability Scheme options include:
Understanding any updates to the Motability Car Scheme allows you to make an informed decision when choosing your next car. If you qualify for this type of benefit, you still want the choice of picking a car that meets your needs but also your style.
Whilst some brands have been removed from the scheme leading to questions from eligible customers, it’s reassuring to know there are still plenty of premium options available. From the Škoda Enyaq to the VW ID.3, by choosing Pulman, you can enjoy a car that satisfies all of your criteria.
You can also test drive any of these models, experiencing what it's like behind the wheel before making up your mind. Enquire about our models here and a member of our team will be happy to help.
