Motability has removed premium marques from its vehicle list with immediate effect, including BMW, Mercedes‑Benz, Audi, Lexus and Alfa Romeo. The operator also set a new ambition for half of all cars leased through the scheme to be British‑built from 2035. The announcement lands ahead of the Autumn Budget on Wednesday 26 November.
Motability says it is refocusing the list on models that meet disabled customers’ needs and are safe, reliable and affordable to run; coupés and convertibles have also been withdrawn. Despite the change, the live price list continues to show more than 840 vehicles from around 30 manufacturers.
For customers already in the pipeline, independent guidance platform MotaClarity reports that orders placed before 25 November will be delivered and existing leases continue unchanged; the update applies to new applications. Motability’s own notice confirms the affected brands have been taken off the price list.
The scheme currently supports about 860,000 users across the UK. Eligibility is linked to receipt of the enhanced rate of the mobility component of Personal Independence Payment (PIP) or other qualifying mobility allowances. In practice, most car leases run on a standard three‑year term, with five‑year terms common for wheelchair accessible vehicles.
According to BBC reporting, premium models account for roughly 50,000 cars within the fleet and have typically been chosen via additional advance payments by customers rather than additional taxpayer subsidy. Motability also plans to raise the share of UK‑built vehicles in the near term while keeping overall running costs contained.
Chancellor Rachel Reeves has endorsed the emphasis on British‑built vehicles, saying the shift will support thousands of well‑paid, skilled jobs and help the wider economy. Transport Secretary Heidi Alexander has previously indicated she would be comfortable with removing very high‑end models from the scheme.
Operational targets now include 25% UK‑built vehicles by 2030, up from around 7% today, and doubling the number of British‑built Nissan models leased to about 40,000. If realised, the 2035 ambition implies demand for roughly 150,000 UK‑made cars a year. The commitment also covers the 36,500 wheelchair accessible vehicles on the scheme, built by UK‑based converters, and the domestic adaptations supply chain.
The change arrives amid pre‑Budget debate about the public cost of supporting a growing caseload. Recent reporting suggests the Treasury has examined adjustments to reliefs linked to the scheme; any decisions will be confirmed only in the Budget on 26 November.
Some policy specialists argue that efficiency gains may lie in the scheme’s replacement cycle. Former DWP Motability policy adviser Matt Ryder told the BBC that offering nearly‑new vehicles-rather than only new cars replaced on a three‑year cycle-could reduce costs, adding that “a brand new car is a luxury purchase.”
For individual users, the immediate effect is reduced access to premium badges; mainstream brands remain widely available and adapted options continue to be offered. Customers should review the updated price list and speak with accredited dealers to identify models that meet seating, access and adaptation needs.