Motability scheme will no longer use ‘expensive’ luxury cars ahead of UK budget

Live Motability scheme will no longer use ‘expensive’ luxury cars ahead of UK budget Craig Munro Published November 25, 2025 6:53am Updated November 25, 2025 6:53am Share this article via whatsappShare this article via xCopy the link to this article.Link is copiedShare this article via facebook Comment now Comments

Mercedes and BMW luxury cars will no longer be available for people on the Motability scheme, it’s been announced ahead of the 2025 UK Budget.

Under the Motability scheme, personal independence payment claimants with serious mobility problems can sacrifice some of their payments to lease a new vehicle.

There’s been criticism in the past of the types of cars available for use in the scheme, and now BMWs, Mercedes will be removed as options, alongside the likes of Audi, Lexus, and Alfa Romeo cars.

Motability Operations, the charity which operates the scheme, said it will focus on British-built cars instead, and it hopes that 50% of the vehicles it offers will come from British factories by 2035.

The change to the scheme is the latest announcement that has been made ahead of Rachel Reeves’ second Budget, which will take place tomorrow afternoon.

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