What Options are Available?

What is Contract Hire?

Most Motability customers choose contract hire as they find it's the best option to obtain and pay for a brand new car. They like the convenience of a single, regular payment that includes comprehensive insurance, maintenance and breakdown cover. At the end of the hire agreement (usually 3 or 5 years) the vehicle is simply returned to Motability.

What is Hire Purchase?

Hire purchase is a form of credit. You agree to buy the vehicle from your chosen supplier and use all or part of your DLA or WPMS to pay monthly by direct debit for the period of the agreement. 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 60,000 miles in three 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.

What is an Advance Payment?

If the cost of the 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.

Can I get help with an Advance Payment?

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.