The New Vehicle Payment is a program introduced last year to assist with the increasing costs of obtaining a new vehicle through the Motability Scheme. As of March 1, 2023, the New Vehicle Payment has been increased to £750. You now have the option to direct this payment to your dealer to offset some or all of your Advance Payment, rather than receiving it a few weeks after taking delivery of your new vehicle and already having paid your Advance Payment. This change is designed to simplify the process of ordering your next vehicle through the scheme.
Here's how it works:
1. You can determine if you are eligible to receive the New Vehicle Payment by answering a few questions here >
2. If you are eligible for the New Vehicle Payment, you can choose to have it sent directly to your dealer to help cover some or all of your Advance Payment.
3. Your dealer will ask you whether you want to use the New Vehicle Payment for your Advance Payment when you place an order for your new car or WAV (Wheelchair Accessible Vehicle).
4. If you opt to send your New Vehicle Payment to your dealer, the arrangement will be made on your behalf before your new vehicle is ready. You don't need to take any additional action.
5. The decision to send the payment to your dealer will also be confirmed in a letter sent to you by Motability once your order is accepted.
If your Advance Payment exceeds £750: You will be required to pay the difference between the New Vehicle Payment and your Advance Payment directly to your dealer when you receive your new vehicle. For example, if your Advance Payment is £1,000 and you choose to send your £750 New Vehicle Payment to your dealer, you will owe an additional £250 when collecting your new vehicle.
If your Advance Payment is less than £750: The remaining amount (the difference) will be sent to you within one to two weeks of receiving your new vehicle. If you've provided your bank details in your Motability Scheme online account, this amount will be transferred directly to your bank. If not, you will receive a cheque instead.
If you choose not to send your New Vehicle Payment to your dealer: The full New Vehicle Payment will be sent to you shortly after taking delivery of your new vehicle. If your bank details are saved in your Motability Scheme online account, the payment will be transferred via bank transfer. Otherwise, you will receive a cheque.
All of this will be handled automatically, and you do not need to contact Motability about it.