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
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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