Published 8 June 2026 · Last updated 22 June 2026
The Motability Scheme has announced significant changes to its leasing terms that will take effect for all new orders placed on or after 1 July 2026. The changes, driven by government tax adjustments announced in the Autumn Budget, include a new annual mileage allowance and the addition of five new car brands to the scheme.
From July, new Motability leases will include a mileage allowance of 10,000 miles per year, equivalent to 30,000 miles over a standard three-year lease. Customers who exceed this limit will face an excess mileage fee of 25p per mile. The scheme has also introduced changes to tyre replacement limits, now allowing up to six tyres over a three-year lease, along with a new administration fee for EU breakdown cover.
On a more positive note, five new car brands have joined the Motability Scheme for 2026: Geely, Jaecoo, Chery, LEAP Motor, and Omoda. These additions bring the total number of available options to over 80 vehicles with no or low Advance Payment, giving scheme users more choice than ever.
The changes come alongside the previously announced application of VAT and Insurance Premium Tax to Advance Payments from July 2026. Weekly lease payments remain unaffected, and Wheelchair Accessible Vehicles continue to be exempt from VAT.
For existing customers, the Motability Scheme has confirmed that current leases will not be affected. The new terms apply only to orders placed from 1 July onwards. The quarterly powered wheelchair and scooter price list has also been updated for the April to June period, with several zero-advance-payment options available.
Customers considering a new Motability lease are advised to review the updated terms carefully. Those who rely on their vehicle for longer journeys may want to factor in the mileage cap when choosing their next car. For people who need mobility aids alongside their vehicle, the scheme continues to offer powered wheelchairs and mobility scooters through its dedicated pricing structure.
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Published 8 June 2026 · Last updated 22 June 2026