Motability New Vehicle Payment updated to £750!
Get £750 with your new Motability car 2023
The Motability New Vehicle Payment is now £750. This is an increase of £500 from £250 last year. The New Vehicle Payment aims to support claimants with the cost of running their new lease. Whether you’re new to the scheme or you’re renewing your lease, you’ll be able to enjoy the full £750.
Read on below to discover how the New Vehicle Payment works, who is eligible and when you’ll receive it.
Motability New Vehicle Payment Summary
- Get £750 for free after taking delivery of your Motability car
- Designed to help Motability customers with the rising cost of living
- If you received £250 for your previous lease, you’ll get a £500 top-up
- No need to apply as it’s automatically paid
- Add your bank details to your account for quick payment
- Or get paid via cheque which can take up to a month
- Not to be confused with the Motability Good Condition Bonus
What is the Motability New Vehicle Payment?
The New Vehicle Payment is another way that the Motability Scheme helps its customers. It’s a £750 payment to help with the cost of living and running your new vehicle.
Introduced in 2022 at £250, you now get £500 more in 2023. Payments start at the beginning of March 2023 whether you’re receiving the full amount or the £500 supplement.
Motability’s official statement:
"In February 2022 we introduced a £250 NVP for car and Wheelchair Accessible Vehicle (WAV) customers. We’re increasing this payment to £750 from the end of February 2023. If you already received a NVP of £250, you’ll get an extra £500 and we’ll start to pay this from the beginning of March 2023. This will make your total payment £750."
How does the Motability New Vehicle Payment work?
The Motability New Vehicle Payment is very simple. You don’t have to do anything! It’s processed once you have taken delivery of your next Motability lease. If you have uploaded your bank details to the online Motability portal, it will be paid straight into your bank account and may take three days.
If you haven’t uploaded your details then the Motability New Vehicle Payment is sent via cheque and may take up to a month to arrive.
So if you need the payment ASAP ensure your details are filled out.
You only are eligible to receive the full payment once. So if you have received your £750 on your new Motability car, you won’t be able to get it with your next lease. However, if you received £250 last year or in early 2023, you are eligible for an additional £500 from March 2023.
When do you get the Motability New Vehicle Payment?
You get the New Vehicle Payment once you have taken delivery of your lease. If you took delivery in 2022 and received the £250 payment, you’ll receive a £500 supplement. Again, you don’t have to do anything to receive this.
Am I eligible for the Motability New Vehicle Payment?
If this is your first Motability car, you are eligible for the full amount.
If you have a Motability car and received £250 last year, you’re eligible for £750.
If your current Motability lease is coming to an end in 2023, you can extend it and receive the payment.
Why did Motability increase the New Vehicle Payment?
The Motability Scheme introduced this increased amount due to higher-than-expected profits in 2022. They wanted to give the money right back to the customer. And seeing as the cost of living is on the rise, there was no better time to introduce this generous offer.
A spokesperson for Motability said:
"We agree entirely with the principle of returning money to Motability customers and are doing exactly that – from spring 2023, every new and renewing customer taking out a lease will receive a payment of £750, with customers who received the New Vehicle Payment of £250 in 2022 having that topped up by £500."
"This amounts to an investment of £525 million over 3-5 years. We are also investing a further £645 million in pricing support to keep lease prices on average 45 per cent cheaper than alternatives."
Other Motability funding secured
On top of PIP and DLA allowances increasing by 10.1% from April 2023, Motability has promised funding that equates to well over £1b. This includes:
- £200m donation to the Motability charity
- £300m to support the transition to EVs
- £220m to accelerate Good Condition Payments
- £645m to support Motability vehicle affordability
Motability Good Condition Payment
There’s another payment you can receive at the end of your Motability lease. If you’ve kept your car in good condition, including inside and out, then you may be eligible for the Motability Good Condition Payment.
- Cars ordered before 1/10/22:
- £600 for a three-year lease
- £900 for a five-year lease
- Cars ordered on or after 1/10/22
- £250 for a three-year lease
- £350 for a five-year leases
- Cars ordered before 1/10/22:
Motability New Vehicle Payment FAQs
Why has Motability paid me?
The amount you’ve received from Motability will explain why you were paid.
It could be Motability New Vehicle Payment if it’s £500 or £750.
£750 is the full amount, whilst £500 is given to anyone who received the New Vehicle Payment when it was £250. You receive this after you take delivery of your Motability vehicle.
If you received anywhere up to £350, this is likely to be your Good Condition Bonus which you receive at the end of your lease.
How long does Motability payment take?
The Motability New Vehicle Payment can take 3 days (if you’ve uploaded your bank account details to your Motability account) or one month if you haven’t as it’s then sent as a cheque.