Non-profit car leasing company Motability Operations has faced
criticism following a Sunday Times investigation into
alleged abuse of the Motability scheme by dealers and relatives of
the severely disabled.
The newspaper alleged that relatives of those
entitled to use their disability benefit to lease Motability
vehicles were using the cars themselves. Motability vehicles are
exempt from VAT and road tax, and are serviced free of charge
through dealerships participating in the scheme.
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In some cases, the report continued, those
willing to pay a deposit were able to acquire a luxury car with a
relative’s disability benefit covering monthly lease payments. A
BMW 3-series saloon, for example, could be leased in this way for
three years with an initial outlay of just £1,999.
The newspaper also accused some dealers of
colluding in the abuse, which a Whitehall source claimed was
costing the taxpayer £500m annually. A London dealer was quoted as
giving misleading information to customers about the permitted use
of these vehicles, which the rules of the Motability scheme state
must be used primarily for the benefit of those eligible.
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