The Motability Scheme
If your child is over 3 years of age and entitled to either the higher rate mobility component of Disability Living Allowance (DLA) or the enhanced mobility component of Personal Independence Payment (PIP), you could get help with a leased car via the Motability Scheme.
How’s it work?
Provided that your child meets the above criteria AND has at least 12 months of their allowance remaining then you can apply for a Motability vehicle – either a car or a scooter.
You can then select a vehicle or scooter, visit a Motability dealer, test drive the vehicle and once you are happy, and have received the required paperwork from Motability, take delivery!
Usually, subject to having enough remaining allowance, you will keep the car for 3 years.
Your new car will be taxed and insured (although there will be a fixed price excess in the event of any claim for loss or damage) and covered for breakdown, windscreen replacement, servicing, MOT etc. – in fact all that you have to do is pay for the fuel.
Your car will be insured for a maximum of two named drivers at no extra cost.
How is the vehicle paid for?
Motability Operations receive 4 weekly payments direct from the relevant benefit agency – ie: the payments are deducted from your DLA or PIP entitlement.
Currently (April 2019) the higher rate mobility component of DLA is £59.75 per week.
There are three pricing options:
- Over 250 cars cost less than your mobility allowance. These cars are available at a fixed weekly amount for the whole of your lease agreement. The remainder of your allowance, including any annual increases, will be paid directly to you by the DWP;
- You can increase your choice by a further 150 cars by choosing to exchange all of your weekly mobility allowance. This payment will include any increases in your allowance during your lease;
- To have a wider choice, you can choose to add to your weekly mobility allowance by paying a one-off up-front Advance Payment. This applies to more expensive vehicles.
Some Motability dealers offer the option to trade-in your own privately-owned car to help finance a vehicle which requires an advance payment.
For more information on the Motability Scheme and to search for cars please visit https://www.motability.co.uk/cars-scooters-and-powerchairs/search/