Motability Scheme Update: Changes to Mileage Limits and Tracking Devices

Motability changes in July may affect current leaseholders.

Motability has given an update ahead of a significant rule change. New leases will only permit 10,000 miles annually before incurring a 25p-per-mile surcharge.

The previous limit was 20,000 miles with a 5p-per-mile charge. Customers must settle excess mileage costs at the end of their lease. Motability attributed the changes to 'Government tax changes'.

Motability stated that doing nothing would make leases £1,100 more expensive. Vehicles will be fitted with telematics technology to track drivers' journeys.

The technology will monitor driving behaviour and generate a weekly rating. Accumulating four red ratings could result in removal from the Motability scheme.

There are exemptions to these changes. Motability outlined them after a customer enquiry.

A customer asked about existing customers over 30. Motability replied that they won't need a tracking device unless they have an excessive claims history.

Leases will have an average yearly mileage allowance of 10,000 miles. This will be a total allowance of 30,000 miles for a three-year lease.

Customers will pay for any miles above their allowance at the end of their lease. Excess mileage will be 25p per mile including VAT.

Motability says leases will have an average yearly mileage allowance of 10,000 miles. Wheelchair Accessible Vehicles will have a total allowance of 50,000 miles over five years.

Customers will pay for any miles above their allowance. Excess mileage will be 25p per mile including VAT.

If you already have a lease, nothing changes right now.

Mileage is a big factor in the cost of running the Scheme. Knowing the miles a vehicle will travel helps plan costs more accurately.

Our aim is to make the Scheme sustainable.

If you need to drive more than the allowance, you can pay for extra mileage. Excess mileage will be charged at 25p per mile including VAT.

This cost covers the additional distance driven and insurance for those extra miles. There will be an exceptions process for limited situations.

Changes are coming to the Motability scheme.

Chief asset risk officer Clare Ickringill stated that Government tax changes have pushed up the cost of running the Motability scheme.

If Motability did nothing, it would make leases £1,100 more expensive. They looked for a way to evolve the scheme that impacts as few people as possible.

Lower mileage helps plan costs more accurately. A car driven fewer miles keeps more of its value and is less likely to have an accident.

From July 1st, new leases will include 10,000 miles a year instead of 20,000. Three quarters of customers already drive under 10,000 miles.

The additional mileage cost covers the extra distance and insurance needed for those miles. Everything is included in this cost.

This change is to offset rising costs and make the scheme sustainable and affordable for as many people as possible.

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