Is it better to lease a car on PIP or buy one for a new driver.

hello007007

Is it better to lease a car on the mobility scheme or buy a second hand car for a young new driver?

hello007007

No additional for the driver/ car are needed**

Savvy_Sue

The answer is, it depends ... Do you mean 'no adaptations needed'? 

For example: if you lease under the motability scheme, if PIP at the higher rate ends, then the car has to be returned. So if there's any danger of that then it's definitely something to consider. 

A leased car will be 'taken care of': servicing etc all included. That's certainly something to consider, because the costs of running a second hand car can never be predicted completely accurately. 

And - this is a BIG consideration - Motability will pay the insurance. For a new young driver, that could be a very significant cost! 

So for a young new driver, it's quite likely that Motability would be a good bet. They do (quite sensibly) limit the insurance group and engine size for cars leased to drivers under 25. 

However remember that a Motability car has limits a) on who can drive it and b) on what it is used for. So while other people can be added to the insurance, it can't be treated as part of the household fleet of cars and used by someone else just because they need a car. To give a concrete example: if Freda is the young person you're enquiring for, she can drive the car, and Big Brother might be added to the insurance too. Big Brother can ferry Freda around, but he can't borrow the car to take his mates to the pub unless he takes Freda too. 

Just for completeness, I'll suggest that for an older experienced driver, buying your own car might be a better option, especially if there's any danger (as there always is, IMO) that higher rate PIP might end. Plus if you know what you're doing and are happy with an economical model which you don't put too many miles on, you might find that the PIP easily covers the cost of motoring. 

knightstyle

^^^^ Great answer.  We have done both at various times and I would add that if someone owns a car used solely for the benefit of the disabled person the road tax is free and you get a few other benefits like the Dart crossing is free.

Savvy_Sue

knightstyle said:

^^^^ Great answer.  We have done both at various times and I would add that if someone owns a car used solely for the benefit of the disabled person the road tax is free and you get a few other benefits like the Dart crossing is free.

Ah yes, I'd forgotten that - not just the Dart crossing, I think quite a few toll bridges are free if you have the blue badge. (Severn bridges used to be, but of course they are free now, not that we're supposed to be using them these days ...)