Motability - how does it work?

DonkeyKong77

Hello

Sorry if this a daft question, but i was wondering on the Motability scheme - what happens after the 3yr period? Do you give the car back/do you have the option to buy it?

From what i understand, th motability part of DLA goes to the dealer - about £170 per month. This is approx £5500 over the 3years - then what happens?

My mum qualifies to get the scheme, but as she doesn't drive, dad would be the nominated driver, they already have a car and there's no need for 2 really, he just uses it to go to work, and ship my mum around etc. However, younger sister is learning to drive and i guess she (once passed) could be one fo the nominated drivers - but it seems a bit steep to forgo £550 in "hire" costs or am i misssing the point?

I think there's 12months at her current rate left (which is one of the criteria) but then what happens if when re-assessed she is given the mid-component, it's hard to predict what happens in 12 months.

Thanks for any advice

anguk

My OH has a motability car and at the end of the 3 years you have the option of buying the car or you can hand it back and get a brand new model, which is what we do.

It does seem alot of money to pay for something and have nothing to show for it at the end of the 3 years but for us it's worth it for peace of mind. There's no insurance to pay, no worries about paying for services or repairs or anything like that, all we have to do is put the petrol in. The car has given my OH independance and freedom so for us the money it costs is worth it.

Some people prefer to use their DLA to get a car under the Motability hire purchase scheme, then the car is yours at the end of the term, but you have to pay for your insurance and repairs etc.

Ted_Hutchinson

Details of the scheme here Motability Web Site

The current DLA mobility component rate is £43.45 It is uprated every year in line with inflation and so it's slightly more than £6778.20 that your mum will be missing.

You must be aware, for insurance and motability conditions, the car can only be used DIRECTLY for the benefit of the disabled person. So any trips out by the nominated driver that are not directly for her mum's benefit would be outside the scheme and thus not covered by the scheme's insurance. It would not be possible for your sister to use the car to go out at night or to work or on holiday unless her mother was with her.
There have been reports of nominated drivers being followed by nosey, jealous neighbours to see if the scheme is being misused. There have also been instances of new motability cars being keyed by jealous neighbours. You have to pay the first £75 of any insurance claim. You may find that repeated insurance claims, even where you are not responsible, mean the insurance isn't renewable.

DonkeyKong77

Thanks

I think it's a good scheme if the dla receiver was able to drive, so then it would be total independence. It also seems a bit exessive at first hand, without much further thought, as on on-hand taxi service with little sister being driver - unless she was able to biuild up her no-claims etc (still there's no guarantee of that!). There's definately no need for a second car, if for the majority of the time, this one is parked outside. Unless we put the first car on insurance that is "commuting only" if there is such a policy and use this to ferry mum about in.

The used car HP schemes seem appealing in that we don't need a new car every 3 years and as "anguk" says you at least have something to show for it - but costs of insurance, servicing etc need to be taken into account. Also, aren't these schemes "with finance" at about 10% or higher - which i think is high, i may be wrong though.

Ted_Hutchinson

DonkeyKong77 wrote:

Also, aren't these schemes "with finance" at about 10% or higher - which i think is high, i may be wrong though.

You're right it starts at 10% but you could be paying as much as 12%
Tesco Car Loan would be 6.9% APR typical,

Yet there are some Motability Users who think Motability are on the disabled person side !!!

anguk

If you don't need a second car you could use the DLA money for the upkeep of your existing car or maybe buy a cheap second hand car your sister can use to ferry your mum around? Although if your sister is a new driver I imagine insurance costs may be high.