Motability Lease Extension Rule Changes: What You Need To Know

Written by Emma Jewsbury at MotaClarity

Thank you to Mobility in Motion for inviting MotaClarity back onto the blog, it’s always a pleasure to share updates with your community.

Starting 16th December 2025, the Motability Scheme will change the rules around lease extensions. If you were thinking of carrying on in your current vehicle rather than ordering a new one right away, these updates could affect you. Below we break down the key points in a simple, easy-to-follow guide.

Motability Lease Extensions: What’s Happening?

Until now, many Scheme customers could apply to extend their lease for up to two years in certain circumstances: for example, if a replacement vehicle was delayed, if the car had very low mileage, or if it had extensive adaptations fitted.

However, from 16 December 2025, longer-term extensions (such as two years) will no longer be routinely available. Instead, only shorter-term extensions (around six months or so) will be offered, and approval criteria will tighten.

Lease Extensions: What Are They?

A Motability lease extension allows a Scheme customer to keep their current car beyond the standard term (typically three years for cars, five years for Wheelchair Accessible Vehicles (WAVs). Extensions were commonly used when:

• A replacement vehicle order was delayed due to supply chain issues.
• Low mileage meant the car still had plenty of life.
• The car was fitted with adaptations which were costly or complex to transfer.
• Temporary changes in the customer’s circumstances meant they weren’t ready for a new car, for example, awaiting benefit reassessment.

During that extended period, the standard inclusive support (insurance, servicing, tyre replacement, breakdown cover) continued under the Scheme.

Changes From 16 December 2025

Here are the headline changes:

• The option to request a two-year extension is being phased out; instead you can expect short-term extensions (around six months) in exceptional cases (e.g., delayed delivery of next car, complex adaptations) only.
• Customers who already have a long extension in place before 16 December will still have their arrangements honoured.
• The Scheme remains committed to supporting adaptation customers, but you’ll need to act early and make the case for necessity rather than simply low usage.

How Could This Affect You?

If you are a Scheme customer and you were planning to hold on to your current vehicle rather than order a new one, here’s what you should know:

• If your car still has low mileage and you were relying on that as a reason to extend, you’ll likely need to start the process of ordering your next vehicle rather than assume the lease can just be rolled over.
• If you have adaptations fitted, you should talk to your dealer or adaptation installer as soon as possible about your next vehicle and how the transfer of adaptations will work.
• If you’re facing a delay in a replacement order, view any extension as short-term rather than a long “buffer” period: you’ll want to get your next vehicle on order as early as possible.
• The underlying message: the policy change is being made because vehicle supply in the market is improving, meaning the Scheme wants to return to “normal” renewal cycles rather than extended roll-overs.

For many drivers, reduced extension options mean you’ll need to think proactively about your next steps, whether that’s ordering a replacement vehicle sooner or planning for alternative routes if your needs are more specific.

If owning your car, especially one with specialist adaptations that suit your needs, is important to you, our Adapt & Drive plan offers a new way to choose a vehicle and own it outright at the end of the term, rather than simply leasing it through the Scheme. Learn more about Adapt & Drive and see if it’s right for your mobility goals.

What Are Your Next Steps?

Here’s how to prepare:

• Most customers decide to order another car, which you can do three months before your lease ends. Motability will send you a reminder when it’s time to renew, giving you plenty of time to choose a new vehicle and arrange delivery.
• If you’ve looked after your car, you could receive a Good Condition Payment when you hand it back. This payment rewards customers who return their vehicles in good condition, helping Motability resell them and keep prices lower for everyone.
• You can also choose to leave the Scheme if your circumstances change or you simply don’t want a vehicle anymore. Choose this option, and you’ll start to receive your Mobility Allowance money again. However, with the Scheme’s wide range of benefits and worry-free motoring package, most people choose to stay.

Whatever your situation, the key is to plan ahead and stay informed. With changes to lease extensions coming soon, making early decisions about your next vehicle will help you stay mobile without any gaps in your Motability cover. If you’re considering your long term mobility and owning a car fitted with the adaptations you need (rather than simply renewing a lease), check out Adapt & Drive— a flexible plan that helps you select and own your adapted vehicle on your terms.

As always, thank you to Mobility in Motion for featuring us again. For more detailed advice on vehicle adaptations, check out their adaptations page and be sure to visit MotaClarity for all things disability motoring, from expert guides to the latest in Motability offers.