Industry warning that Motability scheme - which makes up 42% of NI new car market - won't be able to support sea border changes
Industry figures have warned that the Motability scheme – which makes up a huge 42% of the new car market here – won’t be able to support upfront deposits required by new rules to be brought in under the Windsor Framework.
The changes will also mean higher taxes and less choice for all customers in Northern Ireland, the National Franchise Dealers Association (NFDA) warned MLAs at Stormont this week.
The organisation – which represents car franchising businesses here – said that the proportion of the market in Northern Ireland made up by the Motability scheme is 42%, compared to just 16% in the rest of the UK.
It has warned that customers here will be “challenged” by upfront deposits on vehicles, and said the Motability charity “won’t be able to support that”.
The company that runs the Motability Scheme said they have no plans to change how they price vehicles – and they will continue to work with local dealers.
Changes to the rules on car sales – resulting from the fact Northern Ireland has to follow EU regulations – means that people buying or leasing certain cars won’t be able to get them from local dealerships. They will, however, be able to buy them in Great Britain and drive them back.
People in receipt of the Personal Independence Payment (PIP) can forego that and use the money to lease a new car through the scheme, run by the Motability Foundation. Some Motability customers have to put down an upfront deposit and make extra contributions.
Motability enables a disabled person to use all or part of their higher rate mobility allowance to pay for the lease of a new car, scooter or powered wheelchair, with insurance, road tax, servicing, tyres and breakdown cover all included.
The charity then provides grants to “cover the costs of leasing the right car”.
An NFDA representative told MLAs this week that the NI new car market is in the region of 45,000 vehicles. “Forty-two per cent of that market is supplied to Motability customers in Northern Ireland through the Motability route.
“That's only 16% in the UK. So customers who get a PIP allowance obviously buy a lot of their vehicles through the Motability scheme.
“There's no doubt that those customers are going to be challenged in terms of upfront deposits, because the Motability scheme won't be able to support that here in Northern Ireland, as it does in the UK, because there'll be differences in pricing and all sorts.
“So for those vulnerable people who need their car and buy it through that channel, it's going to be a challenge for them,” they said.
Asked about the comments, a spokesperson from Motability Operations, the company that runs the Motability Scheme, said it uses its “size and scale to negotiate good value vehicles for our disabled customers, based on what car manufacturers and dealers can offer”.
“There are no plans to change how we price vehicles on the scheme, which are set on a UK-wide basis and are updated every three months,” they said.