25 Luxury Cars Axed from Motability Scheme in Budget Overhaul

In a significant move announced by Chancellor Rachel Reeves, the Motability Scheme is undergoing a major overhaul that will see 25 luxury car models removed from its offerings. This change, confirmed in the Autumn Budget, directly impacts the scheme used by approximately 860,000 disabled people across the UK to lease vehicles and mobility equipment.

Which Cars Are Being Removed?

From December, disabled motorists will no longer be able to order new vehicles from several premium brands through the scheme. The list of excluded manufacturers includes Alfa Romeo, Audi, BMW, Lexus, and Mercedes-Benz. Furthermore, in a sweeping change, all coupé and convertible models will become ineligible for selection, regardless of their brand.

The deadline for these changes is swift. While orders for these luxury models can no longer be placed from 1st December, a final window remains open for those with pre-booked appointments until 5pm on Sunday, 30th November.

Government Aims to Refocus the Scheme

Justifying the reforms in the House of Commons, Chancellor Rachel Reeves stated that the scheme's purpose was being diverted. "The Motability Scheme was set up to protect the most vulnerable, not to subsidise the lease on a Mercedes-Benz," she declared. The reforms are designed to reduce taxpayer subsidies for high-end vehicles and return the scheme to its original mission of providing cost-effective transport solutions for disabled individuals.

Alongside the removal of luxury cars, the government has unveiled a new pledge to support British manufacturing. Starting from 2035, a minimum of 50% of all vehicles leased annually through the Motability Scheme will be required to be built in Britain. Motability Operations has committed to working closely with UK car manufacturers to achieve this ambitious target.

Industry Reaction and Future Outlook

Andrew Miller, Chief Executive of Motability Operations, reaffirmed the scheme's value, calling it a "lifeline to freedom and independence" for its customers. He expressed support for the new direction, stating that the commitment to British manufacturing should "put British car manufacturing into top gear."

This shift is expected to benefit manufacturers with strong UK production bases. Nissan, for instance, has welcomed the announcement. James Taylor, Managing Director of Nissan GB, confirmed the company's strong support, noting that the number of British-built Nissan vehicles on the scheme is expected to double to around 40,000 models.

Full list of cars no longer included in the Motability Scheme: