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The Motability Scheme is introducing a number of changes from 1 July 2026 following changes to taxation and operating costs. These updates are designed to help ensure the long-term sustainability of the Scheme while continuing to provide affordable mobility solutions for disabled people across the UK.
While the core benefits of the Scheme remain unchanged, some aspects of vehicle leasing, mileage allowances and Advance Payments will be affected for customers placing new orders from 1 July 2026 onwards.
If you're considering a new Motability vehicle, now is the ideal time to review your options and understand how these changes could impact you.
From 1 July 2026, several important changes will come into effect for new Motability Scheme orders:
The standard mileage allowance will reduce from 20,000 miles per year to 10,000 miles per year.
Many vehicles with an Advance Payment may become subject to VAT, increasing the upfront cost for customers.
The charge for exceeding your mileage allowance will increase to 25p per mile.
Fair-use limits will apply to tyre replacements during your lease period.
Customers travelling abroad with their Motability vehicle will need to obtain the relevant documentation and pay an administration fee.
The all-inclusive benefits that customers value, including insurance, servicing, maintenance, breakdown cover and road tax, will remain part of the Scheme.
One of the biggest changes for Motability customers is the reduction in annual mileage allowance.
For customers who regularly travel longer distances for work, medical appointments, family commitments or leisure activities, this change could have a significant impact.
Exceeding your mileage allowance will also become more expensive, with excess mileage charged at 25p per mile.
By ordering before 1 July 2026, eligible customers can secure the current mileage allowance and enjoy greater flexibility throughout their lease period.
Many Motability vehicles require an Advance Payment, which is a one-off payment made at the start of the lease.
From 1 July 2026, VAT may be applied to many Advance Payments, increasing the amount customers need to contribute upfront.
While the exact increase will vary depending on the vehicle chosen, some customers could face noticeably higher initial costs when ordering after the changes take effect.
Ordering before 1 July 2026 may help customers avoid these additional costs and access current pricing structures while they remain available.
If you already have a Motability vehicle, there is no immediate impact on your current lease agreement.
Your existing contract, mileage allowance and benefits will continue as agreed until your lease comes to an end.
The new rules will generally apply when you place a new order or renew your lease after 1 July 2026.
If your renewal date is approaching, now is a great time to speak with one of our Motability Specialists to understand your options and determine whether ordering before the changes could benefit you.
With several significant changes coming into effect, ordering before 1 July 2026 could offer a number of advantages:
Benefit from up to 20,000 miles per year rather than the reduced allowance.
Take advantage of current Advance Payment arrangements before VAT changes are introduced.
Enjoy greater flexibility without the risk of higher excess mileage charges.
Choose from the latest range of Motability vehicles and offers available today.
As the deadline approaches, demand is expected to increase, so early ordering is recommended to avoid disappointment.
At Read Motor Group, we offer a wide range of Motability vehicles from Hyundai and other leading manufacturers, helping customers find a vehicle that suits their lifestyle and mobility needs.
Whether you're looking for:
Our team is here to help you find the right vehicle before the Motability changes take effect.
Explore our latest Motability offers online or visit your nearest Read Motor Group dealership today.
Our dedicated Motability Specialists are on hand to guide you through every step of the process.
We'll help you:
Order your new Motability vehicle before 1 July 2026 and secure today's Scheme benefits while they're still available.
Contact Read Motor Group today or book an appointment with one of our Motability Specialists to discuss your options.
