Motability Hire Purchase New & Used Finance

If you would prefer to buy your own car you may be interested in the MotabilityHire Purchase (HP) Scheme.

Hire Purchase may suit you if:

• you want to own a car and use your mobility allowance to pay for it

What’s not included in the HP Scheme

You will be responsible for arranging and paying for:

• Comprehensive insurance

• Breakdown recovery

• Servicing and repairs

• MoT if the car is older than 3 years

• Replacement tyres/windscreen/

You will also be responsible for ensuring your car is taxed by either using your tax exemption certificate (DLA 404) or paying for it yourself.

How it works

The amount of money you can borrow to buy a car is determined by the amount of your Higher Rate Mobility Component of Disability Living Allowance or War Pensioners’ Mobility Supplement. Your repayments cannot exceed the 4-weekly amount, but they can be less than this.The minimum weekly repayment is £30.

If you chose HP, you negotiate the price of the car with your Motability dealer.HP finance for new and used cars can betaken over 3, 4 or 5 years.

If you plan to buy a used car it must be less than 3 years old and have driven less than 45,000 miles

The maximum age of a car at the end of a HP agreement can be no more than 7 years old i.e. if the car you plan to buy is 3 years old, the maximum finance you can apply for is 4 years.By agreeing to the HP Scheme you are directing the Department for Work and Pensions (DWP) or the The Service Personnel and Veterans Agency (SPVA) to make the repayments on your behalf, to Motability Operations, for the period you want to take the loan.Repayments will be made by direct deduction from you DLA or WPMS allowance and will be payable at four weekly intervals. If at any time after the agreement has started your entitlements to the HRMC ofDLA or WPMS stop, you are still required to make the regular payments.  However, Motability Operations may decide to terminate the Hire Purchase agreement.