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If you’ve grown attached to your Motability car, you might be wondering whether you can purchase it at the end of your lease. It’s a common question for many UK drivers on the scheme who’ve enjoyed the reliability, adaptations, and comfort of their current vehicle.
Unfortunately, changes made to the Motability Scheme now affect your ability to buy your car directly. But don’t worry. While direct purchase is no longer possible, there are still several options available to you as your lease nears its end.
From leasing a new car to possibly arranging a purchase through your dealership, this guide explains everything you need to know. Whether you plan to continue with the scheme, explore new adaptations, or return your vehicle entirely, having the right knowledge ahead of time will help you stay mobile and stress-free.
Can You Still Buy Your Motability Car at the End of the Lease?
As of December 2023, Motability no longer allows customers to buy their leased cars directly from the scheme at the end of the agreement.
This policy shift applies to all standard cars and Wheelchair Accessible Vehicles under the Motability Scheme. Instead of offering the option to purchase your vehicle, Motability now returns all vehicles to the resale market once the lease ends.
This decision stems from the fact that Motability leases vehicles under a contract-hire agreement. As a result, the cars are never technically owned by you and must be returned when the lease term expires.
However, if you’re hoping to keep your car, there may still be an indirect solution worth considering. Some dealerships may be able to buy the car from Motability and then sell it back to you as a used vehicle.
Although this isn’t guaranteed, it’s a path that some customers have successfully taken by contacting the dealership that supplied the vehicle. Still, your official options primarily include leasing a new car, extending your current agreement, or returning the vehicle.
Why Can’t You Buy a Motability Car Directly?
The Motability Scheme operates on a contract-hire basis, meaning the vehicles you lease are never owned by you. Instead, they remain the property of Motability Operations throughout the duration of your lease, and you’re essentially hiring the vehicle for an agreed period. This leasing structure has always been at the heart of how the scheme works.
There are a few reasons why you can’t buy the car directly anymore:
- Contractual Agreement: The leasing structure prohibits direct purchase, requiring the vehicle to be returned at lease end.
- Sustainability of the Scheme: By ensuring vehicles are returned, Motability can keep offering newer vehicles to more users, making the scheme affordable for future participants.
- Vehicle Rotation: Returning cars helps maintain a high-quality used car supply that supports the overall financial model of the scheme.
Motability’s recent update has standardised this approach, removing the option for customers to request to buy their vehicle directly. Instead, customers are encouraged to explore new lease options or discuss alternatives with their dealer if they’re eager to keep the same car.
This model may seem rigid, but it’s essential for keeping the scheme operational and accessible to the widest range of people possible.
What Are Your Options When the Lease Ends?
When your Motability lease ends, you still have several flexible options to choose from based on your needs. Understanding what you can do ahead of time ensures you avoid any disruptions in your mobility.
You can choose from the following options:
- Lease a New Vehicle: Start looking for a new car around three months before your lease ends. This ensures time for vehicle selection, test drives, adaptation discussions, and delivery planning.
- Extend Your Lease: If your current car is still suitable, Motability may offer a lease extension. This often happens if you’re waiting for a new car or need more time before switching.
- Return the Vehicle: If you no longer need a Motability vehicle, you can return it at the end of your lease. This involves handing the car back to the dealer with all accessories, or arranging a home collection.
It’s important to act within the final three months of your lease. If you do nothing, your car will be collected automatically, and there may be a period without access to any vehicle. Planning ensures a smooth transition, whether you’re continuing on the scheme or leaving.
Is There a Way to Buy the Car Indirectly?
Even though direct purchases from the Motability Scheme are no longer allowed, there might still be an indirect way to keep your current vehicle. While this option is not part of Motability’s official offerings, some users have successfully purchased their vehicles through their supplying dealer.
Here’s how it might work:
- Dealer Purchase from Motability: The dealership you originally ordered the car from may have the first option to buy it from Motability once the lease ends.
- Resale to You: If the dealership acquires the car, they can then offer it to you as a used vehicle sale. This transaction would occur independently of the Motability Scheme.
However, this is not a guaranteed path. Not all dealers will take this route, and there may be competition or differing resale priorities. It’s worth contacting your dealer early, expressing interest in purchasing the vehicle, and asking if they’ll consider acquiring it for resale.
Keep in mind that any such transaction will likely be subject to market prices, availability, and the dealer’s policies. If you’re set on keeping your current car, this is an option worth exploring, but always have a backup plan in case it doesn’t work out.
When Should You Start Planning for the End of Your Lease?
The final months of your lease are crucial. To avoid any delays or unexpected gaps in mobility, it’s important to start planning your next steps around three months before your lease ends. This is the timeline Motability officially recommends.
Here’s what you should do during this period:
- Check Your Lease End Date: You can find this information by logging into your Motability online account or contacting your dealer.
- Review Your Needs: If you’ve had adaptations fitted, now is the time to reassess whether they still suit you.
- Research New Vehicles: Start looking into cars that fit your current lifestyle. Think about comfort, access, and features.
- Update Your Information: Make sure your personal details, nominated drivers, and contact info are all current.
- Speak to Your Dealer: Book appointments for test drives and discussions about adaptations or delivery timelines.
By acting early, you give yourself enough time to make informed choices, avoid last-minute surprises, and ensure your mobility needs continue to be met without interruption.
What Happens to Your Car’s Adaptations?
If your current Motability car has been fitted with adaptations to suit your personal needs, you might be wondering what happens to those features when your lease ends. The short answer is that the adaptations cannot be transferred or kept, they belong to the scheme, not to you.
Motability funds and owns all adaptations provided as part of the lease agreement. When the vehicle is returned, the adaptations remain with it. You don’t need to remove or return them separately. These modifications are not transferrable, and you cannot request to have them taken out for use in another vehicle.
If you’re leasing a new vehicle, you will need a fresh assessment to determine what adaptations are required for your updated needs. Some may be similar to your previous equipment, while others could be entirely new based on changes in your condition or lifestyle.
Planning this early with an adaptations installer ensures compatibility with your next vehicle and avoids delays.
Are You Eligible for a Payment When Leasing a New Vehicle?
Motability offers financial support to make transitions between vehicles more affordable. If you’re ordering a new car through the scheme, there are two potential payments you might qualify for.
- New Vehicle Payment: This is a one-off £750 payment available to customers placing a new order. You’ll receive the money shortly after your new vehicle is delivered. You don’t need to apply for it separately.
- Good Condition Payment: If you return your current car in good condition, you may be eligible for up to £250 (for a three-year lease) or £350 (for a five-year lease). This amount is paid after the car is inspected.
These payments are designed to ease the cost of switching vehicles and encourage good care of your leased car. However, if you’re only extending your current lease, the New Vehicle Payment will apply when you order your next car, not during the extension.
Be sure to confirm your eligibility for both payments with your dealer as you approach the end of your lease.
What Do You Need to Return with the Car?
Returning your Motability vehicle is straightforward, but it’s important to ensure everything is in order to avoid any issues. Whether you’re handing the car back at the dealership or arranging a home collection, certain items must be included.
Here’s what you should return:
- All Sets of Keys: Make sure every key provided at the start of the lease is returned.
- Vehicle Documents: This includes the logbook and any service booklets.
- Accessories: For electric vehicles, return the charger and cables.
- Adaptations: You don’t need to remove or return these separately.
If you’re returning the car early, you should give at least eight weeks’ notice to avoid additional charges. A brief inspection will be carried out by the dealer or collector to check the vehicle’s condition. There’s no need for an MOT, as Motability handles the final checks.
Ensuring you follow this process correctly helps close your lease smoothly and can affect your eligibility for the Good Condition Payment.
Does Your Insurance and Cover End with the Lease?
Once your lease ends and the car is returned, several benefits associated with the scheme will also come to an end. These include insurance, breakdown cover, road tax, and maintenance services. You should be aware of these changes to ensure continued mobility, especially if you’re transitioning between vehicles.
Motability provides full RAC breakdown cover, insurance through RSA Motability, and all servicing during your lease. However, these services cease once the lease concludes. If you’re moving to a new car, these benefits will restart with your next agreement.
If you experience a gap between returning your old car and receiving your new one, you may need to arrange temporary insurance and breakdown cover independently. Planning ahead is essential to avoid being left without necessary cover.
Understanding what ends with your lease allows you to make arrangements in advance, ensuring you stay protected and mobile throughout the transition.
What Should You Do If You Want to Keep Your Motability Car?
If you’re set on keeping your Motability vehicle, your best bet is to start early and understand the limitations of the scheme. While you cannot buy the car directly, there may still be a path to keeping it through your dealership.
Here’s what you should consider:
- Talk to Your Dealer: Ask whether they plan to buy the vehicle from Motability for resale.
- Explore a New Lease: Look for a similar or updated version of your current car.
- Consider Lease Extension: If you’re not ready to change vehicles, a short extension might be available.
- Plan Early: Use the three-month period before lease end to get everything in order.
Although direct purchase is no longer an option, with planning, clear communication, and understanding your options, you may still achieve a similar outcome. The key is to stay informed and proactive.
Conclusion
While you can’t directly buy your Motability car at the end of your lease anymore, that doesn’t mean your options are limited. The scheme continues to offer flexibility through lease renewals, extensions, and the potential to purchase through a dealership.
By planning ahead, reassessing your needs, and staying in contact with your dealer, you can ensure a smooth and stress-free transition. Take full advantage of the financial incentives available and return your vehicle with confidence.
With the right steps, your mobility journey doesn’t have to pause, it can evolve with you.
FAQs
Can I buy my Motability car through my dealer?
You might be able to buy your car if the original dealership purchases it from Motability. This is not guaranteed, so contact your dealer early.
What happens if I don’t act before my lease ends?
Your car will be automatically returned, and you may be without a vehicle temporarily. It’s best to plan your next steps at least three months in advance.
Do I have to remove adaptations when returning my vehicle?
No, you don’t need to remove adaptations. These are owned by Motability and are returned with the car.
What is the Good Condition Payment?
It’s a payment of up to £250 or £350 for cars returned in good condition. It’s issued after the vehicle is inspected post-return.
Can I extend my Motability lease if I’m waiting for a new car?
Yes, lease extensions are common when a new car is delayed. Motability usually contacts you with extension details.
What do I need to return with my Motability vehicle?
Return all keys, documents, and any electric charging equipment. Make sure nothing is missing to avoid delays or deductions.
Will my insurance and breakdown cover continue after returning the car?
No, they end with the lease. You’ll need temporary cover if there’s a gap before receiving a new vehicle.
