Returning new faulty vehicle charged mileage

Kinnie

We have finally been given the go ahead that our new vehicle is on its way.  Promised March 2023 finally sept 2023.

the dealer is trying to charge 45 p per mile before they will hand over the new car, we have 4200 on the clock but if it had been returned in March would have been 1/2 that amount
a  is 45 p a mile legal?
or should it be lower 
thanks

DE_612183

Do you mean that you are part-exing an existing car, and they are trying to reduce the part-ex value?

CliveOfIndia

Kinnie said:

a  is 45 p a mile legal?
or should it be lower 

It may help if you could give a bit of context around what they're charging you for.  But as far as your question goes, yes it's legal - any company is at liberty to charge whatever mileage rate they choose, so long as it's clearly detailed in the contract you signed.  Whether you choose to accept and sign the contract is up to you.

Is it reasonable?  Well, given that 45p per mile is the guidance used by HMRC for company expense claims and such-like, it's probably not unreasonable.

But it really depends on the context of your question - was this a courtesy car they gave you whilst your new car was being prepared, if so then was there an agreed mileage limit that you signed up for?

sheramber

It sounds like you bought a new car which developed a fault. The dealer agreed to you returning it and getting a new one.

You continued to use the car.

Now, that new one is available.


Since you have been using the car since March it seems reasonable to charge mileage up to date.

ontheroad1970

45p a mile is excessive in my view as that is what you are allowed to put against tax for expenses and includes considerations of insurance that the dealer isn't responsible for.

Grumpy_chap

CliveOfIndia said:

Is it reasonable?  Well, given that 45p per mile is the guidance used by HMRC for company expense claims and such-like, it's probably not unreasonable.

We do not have the full context here, but I'd suggest that the 45 pence per mile is unreasonable if this is related to the depreciation of the car.  The 45 pence per mile allowed for business mileage claims includes:

• depreciation
• finance cost
• petrol / diesel
• servicing
• insurance

If this amount is related to the extra mileage covered by the OP on another vehicle, a mileage rate more similar to the excess mileage for a similar car on PCP would seem more reasonable.

Obviously, we all need a bit more context to be any more certain.

WellKnownSid

Have a look on Autotrader and find the price of a 4,200 mile example and a 2,100 mile example e.g. £24,999 and £25,500.

Take the difference (e.g. £501) and divide by 4,200 e.g. 12p per mile

Use that as a basis for discussion on what's reasonable or not...

molerat

As above, excess mileage is generally around 9p to 12p.  Using HMRC business mileage, which is an all inclusive rate including fuel and maintenance, is unreasonable.

Kinnie

Hi everyone, thanks for your comments, we purchased a new car oct 22 and faults appeared the dealer offered a replacement new car in Jan 23 for delivery March 23, we waited nothing, we drove car I’m disabled and need one as garage only loaned a car for a short while.
They didn’t order one, but now finally have and it’s on its way supposedly, and they want 45p per mile, we feel this is excessive as we’ve had to wait an additional 6 months, of course doing miles 

Grumpy_chap

What will you have paid in total for the temporary / faulty car?
If I read correctly, the car will be nearly a year old and you will have covered 4,200 miles in that time.
Is the 45 pence per mile the total the Dealer is asking for?  That makes £1,890 and would make for quite a cheap year of use of a brand new car.
If that mileage is on top of monthly payments, that is a different thing all together. 
Are you also having to pay something extra for the change of vehicle, or extending the payment term?

Kinnie

The agreement was free replacement like for like, our gripe is that we had the car an additional 6 months whilst waiting for them to make their mind up and eventually get one 6 months after they promised and if they’d honoured their agreement we would have had the new car 6 months ago and the miles would have been pn our replacement.  Also 45/p per Mile seems a bit excessive the car was a cash deal