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If you're a Motability Scheme customer or considering joining the programme, then you'll have no doubt heard about the significant changes announced (December 2025). With premium brands being removed and new tax rules coming into effect in 2026, it's natural to have questions about what this means for your mobility and independence.
Here at Wilsons Epsom, we've created this comprehensive guide to help you navigate the evolving Motability landscape with confidence. We'll break down what's changing, when it's happening, and most importantly, what your options are moving forward. Read on to find out more…
On 25 November 2025, Motability Operations announced a significant overhaul of the vehicles available through the scheme. This decision followed the Government's Autumn Budget and marked one of the most substantial updates to the Motability Scheme in recent years.
Effective immediately from December 2025, new applications for vehicles from the following manufacturers are no longer accepted on the Motability Scheme:
Additionally, all coupé and convertible models from other manufacturers have been withdrawn from the price list. This includes popular models like the MINI Convertible and various two-door sports cars.
Andrew Miller, Chief Executive of Motability Operations, explained the decision by stating that the scheme is refocusing on "vehicles that meet disabled people's needs and represent value and purpose - safe, reliable and affordable to run."
Despite the removal of premium brands, the Motability Scheme continues to offer extensive choice for disabled drivers across the UK, including:
The scheme continues to include popular mainstream brands that Wilsons Epsom proudly stocks, including:
These manufacturers offer a diverse range of vehicles that cater to different mobility needs, from compact city cars to spacious family SUVs and wheelchair-accessible vehicles.
Looking ahead to July 2026, further changes will affect the financial aspects of the Motability Scheme. These changes were announced by Chancellor Rachel Reeves during the Autumn Budget 2025.
From 1 July 2026, the current VAT zero-rating on Advance Payments (the upfront costs for higher-value vehicles) will be removed. This means that the standard VAT rate of 20% will be applied to these payments for new leases.
However, it's important to note that:
Currently, the Motability Scheme is exempt from Insurance Premium Tax (IPT). From July 2026, IPT at the standard rate of 12% will be applied to insurance contracts for scheme vehicles.
This change will affect all vehicles except:
Motability Operations estimates that the average Advance Payment will increase by approximately £400 over a three-year lease package once these tax changes take effect in July 2026.
Despite these changes, several protections remain in place:
You might be wondering why the Government and Motability Operations have made these decisions. Understanding the reasoning can help you see the bigger picture:
Chancellor Rachel Reeves stated during her Budget announcement: "The Motability Scheme was set up to protect the most vulnerable, not to subsidise the lease on a Mercedes-Benz. I am making reforms which will reduce generous taxpayer subsidies."
The Government's stated objectives include:
If you're a current or prospective Motability customer, here's how these changes might affect you:
Good news! Your existing lease is completely unaffected by these changes. You can continue to enjoy your current vehicle until the end of your lease term without any modifications to your agreement or costs.
If your lease is ending and you were planning to order one of the removed premium brands, you'll need to choose an alternative from the manufacturers that remain on the scheme. We recommend:
You should be aware that:
WAVs remain fully protected, so you will continue to benefit from:
At Wilsons Epsom, we're committed to supporting our Motability customers through these changes. Our experienced team understands that choosing the right vehicle is about more than just specifications – it's about maintaining your independence and quality of life.
As a trusted Motability dealer in Surrey, we offer:
With over 840 vehicles still available, competitive pricing, and continued support from dealers like us here at Wilsons Epsom, you have excellent options for maintaining your freedom and independence on the road.
Whether you're looking to renew your current lease, joining the scheme for the first time, or simply exploring your options, we're here to help every step of the way. Get in touch with our Wilsons Motability team today!
No. Motability Operations has confirmed that these premium brands will not be reinstated. The scheme is refocusing permanently on practical, affordable mobility solutions.
Unfortunately, no. You'll need to return your vehicle at the end of your lease term and choose from the currently available range. We recommend starting your search three months before your lease ends to ensure a smooth transition.
If you ordered before 25 November 2025, your order will proceed normally and be delivered as planned. Your three-year lease will then continue as usual.
No. If you already have a Motability lease, nothing changes for you. The tax changes only affect new leases starting from 1 July 2026.
Motability estimates the average Advance Payment will increase by around £400 over a three-year lease. However, this varies significantly by vehicle. Many vehicles with no Advance Payment will continue to be available.
Electric vehicles remain available on the scheme and are subject to the same rules as petrol and diesel vehicles. They're an excellent choice due to lower running costs, and many EVs are available with low or no Advance Payment.
Yes, absolutely. There's no change to the service and support you receive from your dealer during your current lease. At Wilsons, we'll continue to look after all our Motability customers regardless of which vehicle they drive.
The Motability Foundation continues to offer means-tested grants to support eligible customers. Additionally, around 40 to 50 vehicles will remain available with no Advance Payment required, meaning you can still access suitable mobility without any upfront cost.
At Wilsons Epsom, we're not just here to sell you a car – we're here to support your independence and help you find the perfect mobility solution. Pop in to see us today, or give us a call to discuss how we can help you navigate the new Motability landscape.