Motability Advance Payments Explained: Why Some Cars Cost More Than Others

An Advance Payment is a one-off upfront cost you pay when the car you've chosen costs more than your Motability benefit allowance covers — not every vehicle requires one, and which ones do can change periodically as Motability reviews its pricing. From 1 July 2026, standard rate VAT will apply to most new Advance Payments, although some customers will continue to qualify for VAT relief.

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Why some cars need an Advance Payment and others don't

Your qualifying benefit covers a set value toward a lease. Many smaller and standard-specification cars are fully covered by this, with no Advance Payment required at all. Larger vehicles, higher trim levels, certain options like automatic transmission on some models, and wheelchair accessible vehicles with more complex adaptations are more likely to need one, because they cost more than the amount covered by the Motability Scheme for that vehicle.

How the amount is calculated

The Advance Payment is the difference between the value your benefit allowance covers and the actual cost of providing the specific car and specification you've chosen. It isn't a fixed fee — it varies model by model, and even between different trim levels of the same car.

The VAT change from July 2026

From 1 July 2026, standard rate VAT will apply to most new Motability Scheme leases. Some customers may still qualify for VAT relief if they meet the HMRC eligibility criteria, including those who normally use a wheelchair or stretcher and lease a suitably adapted vehicle. If VAT applies, it may be added to your Advance Payment, excess mileage charges and early termination fees, but not to your weekly mobility allowance payments. If you ordered your vehicle before 1 July 2026, your Advance Payment is protected and won't change. If you're unsure how these changes affect you, speak to a Howards Motability Specialist.

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Two people shaking hands in a car showroom, one holding paperwork.

Help with Advance Payment costs

If an Advance Payment makes a vehicle you genuinely need difficult to afford — particularly for wheelchair accessible vehicles requiring more complex adaptations — the Motability Foundation, the scheme's charitable arm, provides means-tested grants to help with these costs in some circumstances. It's worth asking your Howards specialist whether this might apply to your situation.

Is the Advance Payment refundable?

Advance Payments are not usually refundable. If your lease ends early, any refund or charges will depend on the circumstances and Motability's terms and conditions. If you're unsure, speak to your Howards specialist before ordering.

Finding cars with no Advance Payment

If avoiding an Advance Payment altogether is important to you, a Howards specialist can talk you through which current models across our range — including Vauxhall, Peugeot, Citroën, Toyota, Nissan, Suzuki, Kia, Hyundai, Honda, Fiat, Leapmotor and Abarth — are available with no upfront cost. You can also check what's included as standard on our site, or browse current models by brand.

Motability Advance Payments Explained: Why Some Cars Cost More Than Others

Why some cars need an Advance Payment and others don't

How the amount is calculated

The VAT change from July 2026

Help with Advance Payment costs

Is the Advance Payment refundable?

Finding cars with no Advance Payment

Browse Our Motability Scheme Range

Frequently Asked Questions

Do all Motability cars require an Advance Payment?

Will my Advance Payment go up because of the July 2026 changes?

Can I get help paying an Advance Payment?

Is my Advance Payment refunded if I return the car early?