Most Motability customers choose contract hire as they find it's the best option for a brand new mobility car. They like the convenience of a single, regular payment that includes maintenance, breakdown cover and means they are fully insured. At the end of the five year hire agreement the wheelchair vehicle is simply returned to Motability.
Hire purchase is a form of credit. You agree to buy the Motability car from your chosen supplier and allocate all or part of your DLA or WPMS to Motability for the period of the agreement in payment for the vehicle. You have the right to possess and use the goods from the time the contract is made. The finance company has a security interest in the goods until all amounts owed by you are paid. Hire purchase may appeal to you if you are likely to exceed 100,000 miles in five years. Also, if your chosen vehicle has a relatively high specification and therefore a larger Advance Payment you may be interested in purchasing the vehicle outright, so that you retain an asset at the end of your agreement.
If the cost of the mobility car you have chosen is higher than your full allowance can cover, you will need to pay the difference as an Advance Payment at the start of the agreement. This will vary depending on your chosen vehicle.
You may be eligible for a grant from Motability towards the costs of your Advance Payment. Contact our Mobility Advisors on freephone 0800 916 0008 for further details.