£25k cap for Motability
No more premium cars in disabled scheme with new £25,000 limit aimed at reducing fraud
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
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.
