What is the Advance Payment on the Motability Scheme?
It’s the amount you need to pay upfront for some large or high specification vehicles. It’s in addition to your weekly mobility allowance. It covers the difference between the cost of your car and your allowance paid over the length of your agreement. It’s not a deposit and it’s non-refundable. To enable this, a small amount of money is built into the cost of your lease as a guarantee. This amount is returned to you at the end of the lease if your vehicle goes back to Motability in what they decide is a good condition.
What qualifies you for an advance payment?
You can get a budgeting advance if you need the money to help you get or stay in work – like train tickets for a job interview. If you need the money for any other reason, you’ll need to have claimed one of these benefits for 6 months or more: Universal Credit. Eligibility. To get a Budgeting Advance, you’ll need to either: have been getting Universal Credit, Employment and Support Allowance, Income Support, Jobseeker’s Allowance or State Pension Credit for 6 months or more.
Can Motability help with Advance Payment?
Our Motability Scheme-Related Grant Programmes provide financial support to disabled people who want to join the Motability Scheme but who need help with the cost of Advance Payments and adaptations. For people who are able to afford a contribution towards their Advance Payment or adaptations but can’t meet the full cost, we may be able to provide a grant that makes up the difference. For people who can’t meet any of the costs, we may be able to cover the total costs with a grant.
What to say to get an advance payment?
Universal Credit contact at your local jobcentre or your work coach if you cannot open an account) explain any money or savings you have. Eligibility for a Second Advance You can apply if you’re already receiving Universal Credit and have reported a change in circumstances leading to an increased payment but haven’t received the adjusted amount. Demonstrate financial hardship or immediate need for essential living costs.You can get up to 100% of your estimated entitlement to Universal Credit. However, you will have to pay the amount back through deductions from future payments of Universal Credit and you might not be allowed to borrow an amount that would take more than 24 months for you to pay back.
Why am I not eligible for an advance payment?
You might be refused an advance if you: have enough money to last until your Universal Credit payment. Getting an advanced payment However, you can apply for an advance payment if you are struggling to cover the cost of food or rent. You will need to pay back the money you get from the advance either through wages or future Universal Credit payments.In the broadest sense, however, an advance payment is a payment that obligates the seller to deliver a product or service by an agreed-upon date in the future. A prepayment, on the other hand, gives the buyer rights for future consumption.