Abuse of Motability scheme forces price cap

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The Motability charity has tightened up its leasing rules, banning the sale of some premium models and imposing a price cap.

The Motability charity has tightened up its leasing rules, banning the sale of some premium models and imposing a price cap. The new regulations were announced last week by Lord Sterling, the Motability chairman in an effort to cut back on the fraudulent use of the Disability Living Allowance.

According to the charity, there were more than 7,000 alleged cases of abuse over the last year alone. New rules include a £25,000 price cap and restrictions on a driver's age and status.

Nominated drivers will now have to live within five miles of the customer and from January, must live with the disabled customer if they are under 21.

Limits will also be placed on drivers below the age of 25, only allowing them access to a car with a power output of 115 bhp or less and a group 16 car insurance rating.

Motability is now Britain's biggest fleet with nearly 600,000 customers. Currently 30,000 of its cars are premium models like the Audi A4 and BMW X3. Under the new rules, these will now be removed from the leasing scheme.

"Motability customers will only be able to choose from the A1 and A3 ranges [under the new rules]," said an Audi spokesman.

Nissan's MD Jim Wright told Auto Express: "Manufacturers who have more expensive ranges may need to respecify models to make entry-level models priced below £25,000."

The most popular models on the Motability scheme are the Ford Focus and the Vauxhall Astra. At present time, electric cars are excluded.


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