The ins and outs of choosing a car (view report contents)
Finance
There are several ways of financing a car, including the Motability schemes which were set up for disabled people to provide affordable vehicles and other useful services.
If you are buying privately, keep an eye out for special low interest deals offered by car manufacturers from time to time (you may have to pay a large deposit). If you are getting commercial finance, shop around and compare APRs (Annual Percentage Rates) – interest rates vary a lot. Haggle for the best deal. Check if there are arrangement or other fees which cut in at the end of the agreement.
Click below for information on the different ways of financing a car
Cash
Personal loans
Finance from dealers
Motability
Charities
Statutory sources
VAT
Vehicle Excise Duty (Road Tax)
Cash
- avoids interest charges but take into account the loss of interest on your savings. You may be able to negotiate a greater discount on the price if you are buying by cash.
Personal loans
– payment periods are flexible (usually one to five years) and you own the car from the beginning. You pay interest throughout the period of the loan but you may be able to borrow the full amount rather than find a deposit. Some companies offer special loans for buying a car which may be cheaper and more flexible.
Finance from dealers
Hire purchase
- you own the vehicle at the end of the contract, but not until then. You have to pay a deposit (at least 10%). Repayments with interest are usually made over two to five years.
Personal contract plan and lease purchase
– you pay a deposit and fixed monthly payments. You don’t own the car until you’ve made the final payment. When the contract ends you can hand the car back, or buy it at a price agreed at the beginning of the contract. Monthly payments and deposit can be low but there may be a high final payment if you want to buy the car at the end of the contract. There are penalties if you drive more than the agreed mileage.
Motability
The Motability Scheme allows you to use the Higher Rate Mobility Component of the Disability Living Allowance or the War Pensioner’s Mobility Supplement to lease or buy a car, powered wheelchair or scooter. There are two ways of getting a car.
Contract Hire Scheme
You use your Mobility Allowance to lease a new car from Motability for
three years. Maintenance and servicing costs, comprehensive insurance
for up to two drivers and RAC breakdown assistance are included.
You can choose a model from a wide range of manufacturers. If you choose
one that is more expensive than is covered by the Mobility Allowance,
you may have to make an advance payment. This ranges from £10 to
a few thousand pounds, depending on the car.
If you travel more than 15,000 miles a year, you will be charged from
5p for each extra mile.
If you need an adaptation it must be supplied and fitted by a Motability
accredited supplier. You have to pay for it, although you may be able
to get a grant – see below. At the end of the agreement, you have
to remove all adaptations and return the vehicle to its original condition.
Hire Purchase Scheme
With this scheme you use the Higher Rate Mobility Component to buy the car. This is done over two, three, four or five years for a used vehicle and over four or five years for a new one. There are no restrictions on mileage or on what the vehicle is used for. As the car is yours once the hire purchase term has been completed, you can keep it for as long as you like and do not have to remove any adaptations if you sell.
Grants
You can apply to Motability for financial help. They administer a number of government funds as well as having their own Charitable Fund. They can be provided for such things as adaptations, advance payments on more expensive vehicles and driving lessons. You have to provide details of your circumstances which will be checked. Motability can only help towards the least expensive suitable solution to your needs.
For more information on any of these contact Motability directly:
Warwick House
Roydon Road
Harlow
Essex
CM19 5PX
Tel: 01279 635999
Fax: 01279 632000
Textphone: 01279 632213
Customer Helpline: 0845 456 4566
www.motability.co.uk
Other sources of finance
Charities
Some charities give grants to individuals.
- Your local library should be able to help you find sources, such as the Round Table, Rotary or Lions Club and other local charities.
- Try your appropriate disability group such as Scope, the MS Society, Muscular Dystrophy group, who may know of sources of help.
- The Family Fund Trust helps families with severely
disabled children aged 15 and under. In some circumstances they may
be able to contribute towards the cost of adapting a car or with driving
lessons. The Fund cannot usually help with the cost of buying a car.
The Family Fund
4 Alpha Court
Monks Cross Drive
York
YO32 9WN
Tel: 0845 130 4542
Fax: 01904 652625
Textphone: 01904 658085
e-mail: info@familyfund.org.uk
www.familyfund.org.uk - If you are over 65, Charity Search
will help you find a grant-giving charity, free (0117 982 4060 10am-3pm,
Monday to Thursday). They also consider requests from disabled people
over the age of 40.
- FunderFinder have a database of organisations that give grants. Call them to find out where you can see their database locally (0113 243 3008) or visit: www.funderfinder.org.uk
Statutory sources
Social services - may be worth trying, especially if
you do not get Disability Living Allowance or if you have already used
its mobility component to lease or buy a vehicle.
Access to Work- Access to Work – if you are in
work or are applying for a job you may be able to get help from the Access
to Work scheme. They may cover the cost of adaptations to a vehicle if
this is the only, or most cost effective way, for you to get to work.
Cases are assessed on an individual basis. Contact your local Job Centre
for information or visit: www.jobcentreplus.gov.uk
.
VAT on adaptations
You do not pay VAT for products designed and made specifically for disabled people. This means all adaptations, their installation, repairs and maintenance are zero rated.
More details from VAT Notice 701/7/904 VAT relief for people with disabilities click here or contact HM Revenue and Customs national advice Service 0845 010 9000.
VAT on vehicles
If you use a wheelchair or a stretcher you may not have to pay VAT on
the puchase price of the car.
You have to
- be a wheelchair user. Temporary users do not count and nor do scooter users, or
- need to be carried in a stretcher.
The car must
- have been designed or substantially and permanently adapted for the person who normally uses a wheelchair or stretcher
- have a carrying capacity of no more than 12 people
- be for domestic or personal use.
Vehicles owned and run by businesses do not qualify. However you can
use a qualifying adapted vehicle for work if it is incidental to its main
use as a private vehicle.
You have to buy and adapt the vehicle at the same time - you cannot get
a refund of VAT for adaptations made later.
What kind of adaptations count?
- Those which make it possible for you to get in and out of the vehicle, such as a swivel seat.
- Those which make it possible for you to drive, such as hand controls for primary driving controls and infra red systems for secondary controls. Note that standard extras such as automatic transmission are not enough to qualify.
- Those which enable a wheelchair to be carried in the vehicle, such as a hoist. Trailers, roof or rear racks would not count as they are not vehicle adaptations.
More information: VAT Notice 701/59 Motor vehicles for
disabled people. From HM Revenue and Customs national advice service (see
above) or contact MAVIS (see mobility centres
section) for a copy.
Note
Alterations made to a car before it is registered in your name have to have type approval. In practice this means that it is only legal to fit them after registration, which means you have to register the car, have the car adapted and then pay for it. Talk to the adaptation firm about how this can be arranged.
Vehicle Excise Duty (Road Tax)
You don’t have to pay road tax if you get either the Higher Rate Mobility Component of the Disability Living Allowance or the War Pensioner’s Mobility Supplement. If you are not the driver you have to provide the name of whoever will drive for you. The vehicle must be registered in your or your nominee’s name. It must only be used by you or for your benefit - such as to do your shopping. However anyone can drive it as long as they are insured.
To claim you must get an exemption certificate from the Disability
Living Allowance Unit (0845 7123456) or the Veterans
Agency (0800 169 2277). Send it with your vehicle registration
documents, test certificate and certificate of insurance to your local
DVLA office.
If the dealer is registering your new vehicle for you, you will need to
let them have your certificate.
Report contents
Introduction
Car design
Choosing a car
What to look for -
- Useful built-in features
- Getting in and out
- Seats and seating
- Major controls
- Secondary controls
- Accessories
- Loading and stowing
- Wheelchair users
- Staying in your wheelchair
- Buying second hand
Checklist
Techniques
Who can drive?
Getting insurance
Finance
Helpful organisations
Mobility Centres
Useful publications
Addresses
