The Motability Scheme has released its updated price list for the first three months of the year, including more electric car options and higher prices for the first time.
The move follows significant tax changes stemming from last year's Autumn Budget, which saw Chancellor Rachel Reeves crack down on tax loopholes.
As part of the changes, from July, VAT will be applied to Advance Payments and Insurance Premium Tax will be added to scheme leases at the standard rate, which stood at 12 per cent in November 2025.
These fiscal adjustments will increase operational costs for the scheme, prompting a six-month review of how it manages expenses while maintaining affordability.
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The organisation has stated it will attempt to absorb these additional costs where feasible, with prices continuing to be assessed quarterly.
Customers ordering vehicles before July will see no immediate price impact, as the amount shown at the time of ordering remains fixed.
The latest price list features close to 100 vehicles available with no upfront cost or minimal Advance Payments, spanning approximately 30 manufacturers and more than 840 models in total.
Among the options requiring no initial payment are the electric Mini Countryman, Mazda 2 Hybrid, Vauxhall Frontera, and hybrid Toyota Yaris. Those willing to pay under £500 upfront can access models including the Nissan Qashqai from £149 and the Kia EV4 from £299.
Chancellor Rachel Reeves has removed tax breaks for the Motability scheme in the Autumn Budget | PA/MOTABILITYLuxury marques like BMW, Mercedes-Benz, Audi and Lexus are absent from the list after Motability confirmed premium manufacturers will not return, citing a renewed emphasis on practical, affordable mobility solutions.
Seven-seater vehicles remain available, with 18 models from 10 manufacturers still offered despite the premium brand removals.
Electric vehicle options have expanded considerably, with more than 50 models now offering ranges exceeding 300 miles on a single charge.
The Kia EV4 starts at £299, while the Skoda Enyaq 85 SE L is available from £749 and the Kia EV3 from £999. Customers who charge at home could reduce their annual running costs by approximately £225 compared to an equivalent petrol vehicle, based on current energy prices and typical usage patterns.
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A number of key Motability changes were unveiled in the recent Budget | MOTABILITYOver 100,000 scheme members have already transitioned to battery-powered vehicles, with charging support included as part of the lease package.
The shift towards electrification reflects broader industry trends driven by the Government's Zero Emission Vehicle mandate, which has prompted manufacturers to prioritise electric models over traditional petrol and diesel alternatives.
Wheelchair Accessible Vehicles have seen an expansion in choice this quarter, with more options available at reduced upfront costs. Small WAVs such as the Citroën Berlingo start from £3,995, while medium-small models like the Volkswagen Caddy Maxi begin at £5,495.
Larger vehicles capable of accommodating up to nine passengers, including the Citroën Spacetourer, are now priced from £8,495.
The Motability scheme helps people with disabilities lease cars | MOTABILITYCrucially, WAVs and vehicle adaptations will remain exempt from both VAT and Insurance Premium Tax when the new charges take effect in July.
All WAV leases continue to include comprehensive coverage encompassing insurance for three named drivers, servicing, maintenance, breakdown assistance and tyre repairs. First-time WAV customers receive support from suppliers who arrange vehicle conversion and home delivery.
The scheme will also undergo a comprehensive review over the coming months to determine how best to manage rising costs while preserving core benefits such as insurance, maintenance and breakdown cover.
Mileage allowances are among the areas under examination, though no decisions have been made, and any changes would be developed in consultation with the Motability Foundation.
The standard mileage allocation remains at 20,000 miles annually for cars on three-year leases, totalling 60,000 miles, while WAV customers on five-year agreements receive 100,000 miles.