The £3,000 vehicle exemption
The MAP rules include a specific exemption for a single vehicle up to £3,000 (note: this is lower than the DRO exemption of £4,000).
The vehicle must be used for reasonable purposes — commuting, family transport, essential mobility.
A second vehicle counts at its full market value, so most applicants have only one.
Vehicles worth more than £3,000
A vehicle worth more than £3,000 counts in full towards the £2,000 asset limit — meaning you almost certainly fail the asset test.
The options are to sell and downgrade before applying (proceeds must be spent on essentials, not held as savings), or consider Full Administration instead.
Motability vehicles
Motability vehicles are leased, not owned. They do not count as your asset. The lease continues during MAP as normal.
Vehicles on finance
For HP or PCP, only the equity (vehicle value minus finance) counts. Most vehicles on finance have nil or negative equity, so the vehicle does not affect eligibility. However, the finance continues, and if you cannot afford the payments the finance company may repossess.