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If you're considering joining the Motability Scheme or are already enjoying worry-free motoring through Motability, there are some important changes coming into effect from 1 July 2026.
The updates will affect areas including VAT on certain charges, mileage allowances, excess mileage costs and tyre replacements. The good news is that customers who apply before the changes take effect may still be able to benefit from the current scheme terms.
At Pulman Group, we're here to help you understand what these changes mean and how you can make the most of the Motability Scheme before July 2026.
View our latest Motability offers today and find your next vehicle
From 1 July 2026, several Motability Scheme benefits will be updated for new applications and handovers taking place after this date.
These changes are designed to align the scheme with future operating costs and VAT requirements.
Key Motability Changes from July 2026
| Scheme Feature | Applications Before 1 July 2026 | Applications On/After 1 July 2026 |
| Annual Mileage Allowance | 20,000 miles per year | 10,000 miles per year |
| 3-Year Lease Mileage Allowance | 60,000 miles | 30,000 miles |
| Excess Mileage Charge | 6p per mile (inclusive of VAT)* | 25p per mile (inclusive of VAT) |
| Tyre Replacements | Up to 8 replacements over 3 years | Up to 6 replacements over 3 years |
| EU Breakdown Cover | Included free of charge | Available with an administration fee |
| VAT on Some In-Life Costs | Standard rate applies | Standard rate applies |
*For customers applying before 1 July 2026 with a handover after 1 July 2026.
If you're thinking about joining the Motability Scheme, applying before 1 July 2026 could help you secure some of the current benefits before the new terms take effect.
Depending on when you apply and take delivery of your vehicle, you may benefit from:
For drivers who regularly travel long distances, these differences could make a significant impact over the course of a three-year lease.
If you're already on the Motability Scheme, the changes will mainly affect new applications and future lease agreements.
Your eligibility and vehicle options remain unchanged, but it's worth reviewing your renewal date and discussing your options with your local Motability Specialist.
Our teams across the North East can help you understand how the new rules may affect your next Motability vehicle.
At Pulman, we offer a wide range of vehicles available through the Motability Scheme from leading manufacturers including:
Whether you're looking for a compact hatchback, family SUV or an electric vehicle, our Motability specialists can guide you through the process from start to finish.
View our current Motability offers
Book an appointment with a Motability Specialist
