How Does The Scheme Work?
Motability means a single monthly payment (contract hire) that includes insurance, roadside recovery and maintenance costs...
There are two ways in which Motability can turn your mobility allowance into the car for your needs:
- Motability Contract Hire - A new car on a three-year contract hire lease
- Motability Hire Purchase - A new or used car on hire purchase, over a term of two to five years
Most drivers choose contract hire as they find it's the best option to obtain and pay for a brand new car, they like the convenience of a single, regular payment that includes comprehensive insurance, maintenance and breakdown cover.
Motability Contract Hire
Once Motability accepts your application, the advance payment and weekly rental are price protected. This lasts for three months from the date your agreement is printed - provided that the car description on the agreement is not altered later.
Your contract hire lease price, which will vary according to the make and model you choose, includes:
- Comprehensive insurance cover
- Full breakdown assistance provided by the RAC
- Servicing, maintenance, and repairs
- An allowance of 60,000 miles over the three years of your agreement*
* Additional miles in excess of 60,000 are charged at 5p per mile at the end of the three-year lease period, if you believe this is possible then you may be better off opting for Hire Purchase.
Motability Hire Purchase
Although it has many advantages, contract hire isn't right for everyone. You might prefer hire purchase if you:
- Want to buy a second-hand car
- Need adaptations and would prefer not to have to re-install them after three years*
- Regularly cover over 15,000 miles each year
If you choose hire purchase, it's important to remember that you are also responsible for comprehensive insurance, breakdown recovery and less predictable costs such as repairs and servicing, which are all included in the contract hire lease.
*5 year extensions available
