Motability Scheme Changes from July 2026: What You Need to Know

The Motability Scheme has announced some changes that will come into effect for new vehicle orders placed from 1st July 2026.

If you're already driving a Motability vehicle, the most important thing to know is that your current lease won't be affected. These updates only apply when placing a new order from July 2026 onwards.

Why are these changes happening?

The changes are being introduced following new government tax rules that will increase the cost of running the Scheme. To help keep the Motability Scheme affordable and sustainable for the future, Motability has made some adjustments to how new leases will work.

What's changing?

Mileage allowance

Current allowance

• 60,000 miles over a three-year lease (20,000 miles per year)
• 100,000 miles over a five-year WAV lease

From 1st July 2026

• 30,000 miles over a three-year lease (10,000 miles per year)
• 50,000 miles over a five-year WAV lease

Motability says most customers drive around 7,500 miles per year, meaning many customers will remain within the new allowance.

Excess mileage charges

From 1st July 2026

• 25p per mile (including VAT) If you exceed your mileage allowance, the new charge will apply to any additional miles driven.

Tyre replacements

Current allowance

• Tyre replacements included as needed during your lease

From 1st July 2026

Three-year leases

• Up to six tyre replacements
• Up to four replacements due to accidental damage

Five-year WAV leases

• Up to ten tyre replacements
• Up to six replacements due to accidental damage

This change is an update to Motability's fair usage policy based on how tyres are being used today. Motability says these limits are designed to cover the needs of the vast majority of customers.

Travelling abroad

Current arrangement

• European breakdown cover included without an administration fee

From 1st July 2026

• Customers will need to notify the RAC before travelling
• A VE103 certificate will be required
• A £22 administration fee will apply

Did you know? Fewer than 1% of Motability customers currently use breakdown cover abroad.

What isn't changing?

The great news is that the Motability Scheme will continue to offer the same comprehensive package that customers rely on, including:

• Insurance for up to three named drivers
• Servicing and maintenance
• Breakdown cover
• Road tax where applicable
• Ongoing support throughout your lease

Any Questions? Our friendly Motability Specialists are here to help!

We know that Motability is about much more than getting from A to B – it's about independence, freedom and peace of mind.

If you'd like to understand how these changes might affect you, or you're thinking about ordering a new Motability vehicle, our specialists are here to help. Whether you'd prefer to give us a call, send us a message or pop into your nearest Gates dealership, we'll be happy to talk you through your options and answer any questions you may have.

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