Motability has removed BMW, Mercedes, Audi, Lexus and Alfa Romeo from its price list with immediate effect, while setting a goal for half of all cars it leases to be British-built by 2035. The timing lands ahead of the 2025 Budget on Wednesday 26 November, sharpening the focus on costs and industrial policy. Motability confirmed the change alongside its UK-build ambition; the Guardian separately reported the pre-Budget context, while Parliament has set the Budget date.

Scale matters here. Motability says 860,000 people use the scheme across the UK, with around 300,000 vehicles leased each year and 36,500 Wheelchair Accessible Vehicles supported by UK converters. Most customers take three‑year leases for cars and five years for WAVs, reinforcing a steady renewal cycle that ripples through manufacturers and dealers. These figures come from Motability’s own factsheets and press materials, with lease terms widely explained by independent Motability specialists.

This isn’t only about badges. Motability has also stripped out coupes and convertibles and says the refreshed list aims to keep options “safe, reliable and affordable to run”. Even after the cull, customers still face a wide catalogue: more than 840 vehicles from roughly 30 manufacturers, according to the scheme’s update to users.

Why now? Cost pressure. After record customer growth, Motability Operations posted a 2024 pre‑tax loss of roughly £565m as it absorbed higher costs, including a sharp rise in insurance. The business insists the all‑in lease still compares well with retail alternatives and notes it is the UK’s largest supplier of used cars when ex‑lease stock is remarketed - another key link to dealer profitability.

Premium cars were a small slice of the scheme and did not add to taxpayer costs because customers paid any top‑ups themselves. The Guardian puts premium models at about 5% of the fleet, roughly 40,000 cars, underscoring that this decision is more about refocusing eligibility and optics than delivering direct savings on those specific vehicles.

The industrial angle is clearer. Motability plans to lift UK‑built purchases to 25% by 2030, up from about 7% today, before hitting 50% in 2035. It also expects to double orders of UK‑built Nissans to around 40,000 in the near term. On Motability’s own maths, a steady‑state scheme could translate to roughly 150,000 UK‑built cars a year by 2035 - meaningful volume for factories and supply chains.

Registration data hints at likely winners. Year‑to‑date figures collated by Fleet News show Peugeot leading Motability registrations, followed by Volkswagen, Kia and Hyundai; Nissan and Vauxhall are also strong. With premium marques gone, mainstream brands with UK footprints - and vehicles suitable for adaptations - could see a larger share of orders and more predictable dealership throughput.

Dealers now face a different pipeline mix: fewer prestige conversions, more focus on practical models and adaptations. One former DWP Motability policy lead told the BBC that allowing nearly‑new vehicles could further ease costs - a challenge to the current new‑only, three‑year cycle. If piloted, that would shift residual‑value risk and preparation work towards fleets and retailers.

Customer stories cut through the politics. A user in Northern Ireland told the BBC she paid an advance to lease an adapted BMW after years of being unable to drive, saying: “We should all have a choice.” Removing premium options will not stop adapted motoring, but it narrows the range for those willing to part‑pay for features that meet their needs.

Ministers have trailed the direction of travel. Transport Secretary Heidi Alexander said earlier in November she would be comfortable with “really high‑end cars” being off the scheme, framing it as value for money for taxpayers. The immediate brand removals align with that stance, while leaving the broader scheme intact.

EV transition sits in the background. Motability says more than 100,000 of its customers now drive electric, yet many report concerns about range and public charging access. Any push towards UK‑built EVs must account for accessibility - kerbside charging, driveway access and cable management - to avoid excluding the very users the scheme serves.

What to watch next. The Guardian reports the Treasury is considering trimming around £300m of tax breaks linked to the scheme, with details likely in Wednesday’s Budget. Any shift on VAT or insurance premium tax would directly shape lease affordability, OEM pricing strategies and dealer advance payments in the months ahead.