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Motability Pulls BMW, Mercedes and Other Premium Brands, Shifts Toward UK-Built Cars

Motability positions the change as a value-first shift that supports domestic manufacturing.

Overview

  • Motability Operations removed premium brands including BMW, Mercedes, Audi, Lexus and Alfa Romeo from its leasing scheme with immediate effect.
  • The operator will increase orders of UK-built vehicles, targeting 25% by 2030 and 50% by 2035, with Nissan’s British-built orders set to double to around 40,000.
  • The overhaul follows scrutiny of upgrades, with reporting that about 85% of users pay extra to opt for higher‑specification models.
  • The scheme serves roughly 815,000 users and previously included about 40,000 premium cars, with leases benefiting from VAT and insurance premium tax exemptions.
  • Reports suggest the Treasury is examining possible tax changes including the VAT exemption, while officials decline to comment and eligibility changes await Sir Stephen Timms’ PIP review.