UK Motor Scheme Ditches Luxury Cars, Puts British-Built Vans First
The UK's popular car leasing scheme for disabled drivers is making a significant shift towards supporting local manufacturers, as it announces plans to ditch luxury brands like BMW and Mercedes-Benz in favour of more affordable, domestically produced vehicles.
By 2035, the Motability Scheme aims to source at least half its vehicles from British factories, with the goal of providing thousands of new job opportunities. The move is set to have a major impact on the UK car industry, which has faced years of decline and factory closures. In fact, if the scheme stays on course, it's expected that over 100,000 extra sales will be generated within the UK each year.
The decision comes as the government seeks to support well-paid, skilled jobs, particularly in the manufacturing sector. However, some critics have warned that this could lead to significant costs for disabled individuals, who currently contribute more towards their leased vehicles through higher insurance premiums and value-added tax (VAT).
Motability Operations has denied any plans to raise VAT rates on its customers, but rather aims to offer more "value and purpose" in its lease agreements. BMW and Mercedes-Benz vehicles currently make up just 5% of the scheme's total fleet, with a further 40,000 units accounted for by other premium brands.
In contrast, Nissan is set to benefit from the new policy, with the number of UK-built vehicles leased through the Motability Scheme expected to double. Mini, owned by BMW, may also see its factory in Oxford used to build electric versions, providing an incentive for increased production in the region.
Industry experts are hailing the move as a significant boost to the UK car industry, which has struggled with declining sales and factory closures in recent years. With Nissan already benefiting from the new policy, and other manufacturers like Mini set to receive support, it's clear that the Motability Scheme is putting British-built vehicles at the forefront of its operations.
The UK's popular car leasing scheme for disabled drivers is making a significant shift towards supporting local manufacturers, as it announces plans to ditch luxury brands like BMW and Mercedes-Benz in favour of more affordable, domestically produced vehicles.
By 2035, the Motability Scheme aims to source at least half its vehicles from British factories, with the goal of providing thousands of new job opportunities. The move is set to have a major impact on the UK car industry, which has faced years of decline and factory closures. In fact, if the scheme stays on course, it's expected that over 100,000 extra sales will be generated within the UK each year.
The decision comes as the government seeks to support well-paid, skilled jobs, particularly in the manufacturing sector. However, some critics have warned that this could lead to significant costs for disabled individuals, who currently contribute more towards their leased vehicles through higher insurance premiums and value-added tax (VAT).
Motability Operations has denied any plans to raise VAT rates on its customers, but rather aims to offer more "value and purpose" in its lease agreements. BMW and Mercedes-Benz vehicles currently make up just 5% of the scheme's total fleet, with a further 40,000 units accounted for by other premium brands.
In contrast, Nissan is set to benefit from the new policy, with the number of UK-built vehicles leased through the Motability Scheme expected to double. Mini, owned by BMW, may also see its factory in Oxford used to build electric versions, providing an incentive for increased production in the region.
Industry experts are hailing the move as a significant boost to the UK car industry, which has struggled with declining sales and factory closures in recent years. With Nissan already benefiting from the new policy, and other manufacturers like Mini set to receive support, it's clear that the Motability Scheme is putting British-built vehicles at the forefront of its operations.