Q. What is "Contract Hire"?
A. “Contract Hire” is the type of leasing agreement contract that Motability offer. This type of agreement includes getting a brand new car of your choice every three years, insurance, breakdown cover, servicing and tyre and windscreen replacement.
Q. What is "Hire Purchase"?
A. “Hire Purchase” is when a customer chooses to pay monthly for their vehicle, and may pay a deposit or fee at the start and end of the agreement. At the end of the agreement, the vehicle is owned by the customer. Hire Purchase is no longer available through the Motability Scheme. Less than one per cent of customers opted for this option and it stopped being available on 1st July 2014.
Q. Why do some cars have an Advance Payment?
A. Some higher specification cars may require an advance payment. This covers the difference between the cost of your new vehicle and your allowance paid over the length of the agreement. However, there are hundreds of cars available with no advance payment and also some that cost less than your weekly allowance, so that you still have budget left over to spend however you choose.
Q. Do I get the Advance Payment back?
A. No, you will not receive your advance payment back, as this is not a deposit.
Q. When will my car lease agreement end?
A. Most agreements run for three years from the date that your vehicle was delivered (5 years for Wheelchair Accessible Vehicles). The agreement end date will be detailed in your contract.
Q. What options do I have at the end of my car lease agreement?
A. At the end of your agreement you can either lease another car through the Motability Scheme, return your car and have your allowance reinstated or you may be able to extend your current lease to keep the car for longer. You can discuss the options further with one of our Motability specialists at Baylis.