Motability has removed high-end brands such as BMW, Mercedes, Audi, Alfa Romeo and Lexus from its vehicle list with immediate effect as it refocuses the scheme on British-built models.
The move comes as the charity sets a target for UK-manufactured cars to make up 25% of its fleet by 2030 and half by 2035, up from around 7% today.
Motability says the change will prioritise vehicles that are safe, reliable and cheaper to run for customers.
Around 860,000 people currently lease a car through the scheme, many of which are adapted for wheelchair users.
Some 50,000 of those vehicles were higher-end models; customers typically pay any extra cost for such cars themselves as an advance payment.
The decision follows growing concern about the rising cost of the programme and speculation about reforms ahead of the Budget.
Chancellor Rachel Reeves argued that buying more British-built cars would help protect skilled jobs and boost the economy.
Ministers and critics have suggested curbs on very expensive models, with transport secretary Heidi Alexander saying she would be open to removing top-tier cars from the scheme.
Motability says it is refining which makes are available to better match disabled customers' needs.
Not everyone welcomes the change.
Farah Black, a wheelchair user from Northern Ireland, told the BBC she was moved to tears when she collected a BMW adapted for her—she had paid extra for the car and believes disabled people should have the same choices as anyone else.
Former Department for Work and Pensions adviser Matt Ryder argued the scheme’s cost issues go deeper than brand choices.
He suggested offering nearly-new cars instead of only brand-new vehicles replaced every three years as a way to save money.
Motability’s chief executive said the programme remains essential to many customers’ independence and that the organisation wants to do more to support the UK economy while keeping the scheme sustainable.
The premium brands have already been removed as selectable options from Motability’s website as the organisation implements its new priorities.
