Car finance for people with disabilities: options and support

If you live with a disability, you may have several routes for getting hold of a new car. Let's compare car finance to Motability and other options.



Having access to a reliable car can make a real difference to independence, whether that means travelling to work, attending medical appointments or managing everyday journeys.

For people living with disabilities, choosing a vehicle can involve additional considerations. For example, you may have to consider specialist adaptations, accessibility and the cost of maintaining a suitable car.

Fortunately, several options are available in the UK, from the Motability Scheme to private car finance.

Understanding the available support can help you find a vehicle that meets your needs without putting unnecessary pressure on your finances.

Adapted vehicles: finding the right car

The right vehicle depends on your mobility requirements, how you plan to use it and whether you'll be driving or travelling as a passenger.

Adaptations can make driving and travelling more accessible. These might include hand controls, steering aids, swivel seats, wheelchair hoists or wheelchair-accessible vehicle (WAV) conversions.

Some people may need relatively simple modifications, while others require specialist vehicles with lowered floors and extra space for wheelchair access.

Before choosing a car, consider:

• How easily you can get in and out
• Whether you need to store mobility equipment securely
• How many passengers you regularly carry
  
  

Not every vehicle is compatible with every adaptation. Speak to a specialist installer or mobility adviser before committing to a purchase. This can help you identify a suitable vehicle and avoid unexpected modification costs.

It's also important to establish whether adaptations are included in the purchase price or you'll need to finance them separately. Their cost can significantly affect your overall budget.

The Motability Scheme

The Motability Scheme lets eligible people exchange some or all of their qualifying mobility allowance for a leased car, powered wheelchair or scooter.

Eligibility includes receiving the enhanced-rate mobility component of Personal Independence Payment (PIP), subject to the scheme's other requirements. Those requirements include having at least 12 months remaining on the award when applying.

Depending on the vehicle and agreement, the scheme can include insurance, servicing, maintenance and breakdown cover. A range of adaptations is also available, with many standard adaptations provided at no additional cost when fitted at the start of the lease.



Another option: private car finance

Motability isn't the only option. Depending on your circumstances, you might want to consider private car finance instead.

Private car finance may appeal if you:

• Want to own a vehicle eventually
• Want to choose from a wider selection of used cars
• Need a vehicle that better suits your individual circumstances

Common options include:

1. Hire purchase (HP). You pay a deposit, then regular instalments. Ownership usually transfers to you after you've paid all contractual payments plus a purchase fee, if applicable.
2. Personal contract purchase (PCP). As with HP, you pay a deposit followed by monthly instalments. The difference is that you can choose whether to own the vehicle at the end of the agreement by paying a so-called "balloon payment".
3. Buying a used car. Choosing a less expensive vehicle may reduce borrowing costs and leave more money available for adaptations.

The Motability Foundation may also provide means-tested grants towards eligible advance payments and essential adaptations for people using or joining the scheme. Its grants don't generally cover adaptations for privately purchased vehicles.

It's best to compare the total cost of each option, including deposits, interest, insurance, maintenance and adaptation expenses, rather than focusing solely on monthly payments.

Can PIP count as income for car finance?

Yes, PIP may be considered as income when applying for private car finance. However, acceptance depends on the lender and your overall financial circumstances.

PIP helps people living with disabilities meet the additional costs associated with their condition. Although the mobility component can help with transport-related expenses, PIP is not restricted to a particular purchase.

Some lenders consider benefit income alongside wages, pensions or other regular income when assessing affordability. Others apply different eligibility criteria. So, receiving PIP doesn't guarantee approval and lenders may request evidence of your award and other income.

They may also assess your credit history, existing commitments, deposit and ability to maintain repayments throughout the agreement.

It's worth distinguishing private finance from Motability eligibility. You don't necessarily need to qualify for Motability to apply for a conventional car finance agreement.

Before proceeding, calculate the complete cost of running the vehicle, including fuel or charging, insurance, maintenance and any specialist equipment.

If you receive means-tested benefits, consider whether your financial arrangements could affect your wider circumstances and seek independent benefits advice if necessary.

How we can help

If you're considering private finance, we can help.

Zoomo is a trusted dealership specialising in used cars on finance in Newcastle. We serve customers across the North East, including Gateshead, Sunderland and Durham.

Zoomo works with a panel of lenders and considers applications from people with different credit histories. This may be useful if you've previously struggled to obtain finance or need to discuss your individual financial circumstances.

Additional support for motorists with disabilities

Beyond car finance, you may be eligible for other assistance:

1. Vehicle tax exemption. Eligible people receiving the enhanced-rate mobility component of PIP may qualify for exemption from vehicle tax on one vehicle.
   
   
2. Vehicle tax reduction. Those receiving the standard-rate mobility component of PIP may qualify for a 50% reduction.
   
   
3. VAT relief. Certain vehicle adaptations can qualify for VAT relief when the relevant conditions are met.
   
   
4. Accessible transport. Your local council may offer community transport, concessionary travel or other assistance.
   
   

Finding the right finance solution

Car finance for people living with disabilities is not a one-size-fits-all decision. The right option depends on your accessibility requirements, income, available support and the vehicle you need.

Compare Motability with private finance, investigate grants and concessions and seek specialist advice about adaptations before committing to a purchase.

With careful planning, it's possible to find a vehicle that supports your independence while keeping costs manageable.