Skip advert
Advertisement

£25k cap for Motability

No more premium cars in disabled scheme with new £25,000 limit aimed at reducing fraud

BMW X3

Abuse of disabled drivers’ car allowances has forced charity Motability to tighten its leasing rules. The move will ban the sale of some premium models and, according to Nissan, may “change the way the industry sells cars”.

The new rules, announced last week by Motability chairman Lord Sterling, include a £25,000 price cap and restrictions on drivers’ age and status. The changes are designed to cut fraudulent use of the Government’s Disability Living Allowance, which in 1.7 million cases extends 

Advertisement - Article continues below

to leasing a brand new car.

Motability says there were more than 7,000 alleged cases of abuse in the last financial year alone. With almost 600,000 customers, Motability is Britain’s biggest fleet – 30,000 of its cars are currently premium models such as the BMW X3 and Audi A4, which will now be removed from the leasing scheme.

An Audi spokeswoman said: “Motability customers will only be able to choose from the A1 and A3 ranges [under the new rules].” And Nissan MD Jim Wright warned: “Manufacturers who have more expensive ranges may need to respecify models to make entry-level models priced below £25,000.”

The sub-£25,000 Nissan Qashqai is one of the most popular cars on Motability’s scheme, along with the Ford Focus and Vauxhall Astra. Electric cars are currently excluded.

Motability’s new rules include restrictions on nominated drivers, who now need to live within five miles of the customer. Plus, from January, nominated drivers aged under 21 will only be permitted if they live with the disabled customer.

Drivers aged under 25 will also be restricted to cars with a power output of 115bhp or less and an insurance rating up to group 16.

Skip advert
Advertisement
Skip advert
Advertisement

Most Popular

Vauxhall Grandland vs Renault Austral: Britain against France in a hybrid SUV clash
Vauxhall Grandland and Renault Austral - front tracking, header image

Vauxhall Grandland vs Renault Austral: Britain against France in a hybrid SUV clash

Renault’s Austral and Vauxhall’s Grandland have both been updated, but which is the better choice?
Car group tests
18 Apr 2026
Used Volkswagen ID.5 (Mk1, 2022-date) buyer’s guide: huge depreciation makes EV very attractive
Used Volkswagen ID.5 - front

Used Volkswagen ID.5 (Mk1, 2022-date) buyer’s guide: huge depreciation makes EV very attractive

A full used buyer’s guide on the Volkswagen ID.5 coupe-SUV that’s been on sale since 2022
Used car tests
19 Apr 2026
New Hyundai Ioniq 3 breaks cover with stunning sci-fi looks
Alastair Crooks with the Hyundai Ioniq 3

New Hyundai Ioniq 3 breaks cover with stunning sci-fi looks

Despite sharing the same underpinnings as the Kia EV2, the Hyundai Ioniq 3 looks radically different
News
20 Apr 2026

Find a car with the experts