Motability Finance Ltd

Motability Finance Limited (MFL) is a subsidiary of Motability, a UK-based charity dedicated to providing independent mobility solutions to people with disabilities. While Motability is the overseeing charity, MFL is the financial arm that facilitates the leasing of vehicles through the Motability Scheme.

The core purpose of MFL is to manage the financial aspects of the Motability Scheme, ensuring its long-term sustainability and accessibility for eligible individuals. The scheme allows individuals receiving a qualifying mobility allowance, such as the Higher Rate Mobility Component of Disability Living Allowance (DLA) or the Enhanced Rate Mobility Component of Personal Independence Payment (PIP), to exchange all or part of their allowance for a new vehicle.

MFL’s primary function is to provide the financial arrangements that underpin these leases. This includes purchasing the vehicles from manufacturers at competitive rates, managing the lease agreements, and handling the financial administration involved in the scheme. They also manage the end-of-lease process, including the disposal of returned vehicles.

The key aspects of MFL’s operations include:

• Vehicle Procurement: MFL negotiates pricing with vehicle manufacturers to secure competitive deals for scheme participants. This ensures the affordability and range of vehicles available.
• Lease Management: They handle all aspects of the lease agreement, from initial application and vehicle selection to insurance, servicing, maintenance, and breakdown assistance (provided by partners).
• Financial Administration: MFL manages the flow of funds, including receiving allowance payments, making payments to suppliers, and maintaining the financial integrity of the scheme.
• Asset Management: They oversee the lifecycle of the vehicles, from their initial lease to their eventual disposal, ensuring the value of the asset is maintained.
• Customer Support: While not directly providing customer service to scheme participants, MFL supports the Motability Scheme dealer network and provides resources to assist with customer enquiries.

MFL operates on a not-for-profit basis, meaning any surplus revenue generated is reinvested back into the Motability Scheme. This benefits scheme participants through lower lease costs, improved services, and the expansion of the vehicle range available.

The financial stability and responsible management provided by Motability Finance Limited are crucial to the success and longevity of the Motability Scheme. By handling the complex financial aspects of the scheme, MFL allows the Motability charity to focus on its core mission: empowering individuals with disabilities to achieve greater independence and freedom.