Motability Advance Payment explained

If you’re interested in getting a car via the Motability scheme, you need to know about Advance Payments

People in receipt of certain state benefits are able to sacrifice a portion of their benefits in exchange for a new car via the charity Motability, with the vehicle being typically leased over three years.

But while many Motability cars don’t require any payments over and above sacrificing certain benefits, a good number of Motability cars require you to make an additional contribution from your own funds, with this being known as an Advanced Payment. Our guide explains all.

What is an Advance Payment on Motability?

The Advance Payment reflects the fact that while many of the cars available through Motability are affordable, small cars like the Hyundai i10, Volkswagen Up and Skoda Fabia, some are pricier, larger, more premium models, like the Audi Q4 e-tron and the BMW X2.

Choose a more expensive car and you may find the portion of your benefits that you sacrifice in exchange for the car isn’t enough on its own, and you’ll need to make an additional Advance Payment before you take delivery of the car in order to get some vehicles.

These Advanced Payments can be anything from a couple of hundred pounds to several thousand.

Do all Motability vehicles have an Advance Payment?

No, a large number of cars are available via Motability with no Advanced Payment – just giving up the relevant portion of your benefits will be enough to fund one. We’ve compiled a list of great Motability cars available with nil deposit.

If you’re deciding whether you go for a car with or without an Advanced Payment you should weigh up your own personal financial circumstances, as well as how crucial the need is to get a larger vehicle or a more premium one, for example.

Is there any help available to fund an Advance Payment?

Yes: in addition to organising new-car leases and benefits’ payments to be made in exchange, Motability also offers charitable grants that in some circumstances can help towards the cost of a vehicle’s Advance Payment. Applications should be made via Motability’s website.

To reflect the price rises new cars have been subject to, Motability also offers a New Vehicle Payment, which is £750, and can go towards a car’s Advance Payment; you’ll need to order a car before the end of 2023 if you’re new to the Motability scheme, while people who were on the scheme prior to 1 January 2022 will be eligible whenever they apply for a new vehicle.