Returning new faulty vehicle charged mileage

angrycrow

Assuming I have understood correctly you purchased car a outright with cash in October 2022. The car developed a fault which could not be resolved so the dealer agreed to replace it in January 2023 but forgot to order it. The fault is not so severe as to make the car undrivable and you have continued to have full use of the car. New car has now been ordered. When the new car arrives you will have had 12 months use of the original car. 

In that time the car has depreciated. Using a Ford Kuga as an example one years depreciation appears to be between £5000 and £7000. 

Whilst charging 45p a mile is completely the wrong approach it works out at £1890. Compared to the depreciation the dealer could reasonably charge on the original car you are getting a bargain. 

Whilst it may have been a frustrating process start to finish and let's face it who has £1890 down the back of the sofa be prepared to find this money to secure a bargain. I would suggest not mentioning depreciation and see if they would accept a reduced mileage rate.

ontheroad1970

angrycrow said:

Assuming I have understood correctly you purchased car a outright with cash in October 2022. The car developed a fault which could not be resolved so the dealer agreed to replace it in January 2023 but forgot to order it. The fault is not so severe as to make the car undrivable and you have continued to have full use of the car. New car has now been ordered. When the new car arrives you will have had 12 months use of the original car. 

In that time the car has depreciated. Using a Ford Kuga as an example one years depreciation appears to be between £5000 and £7000. 

Whilst charging 45p a mile is completely the wrong approach it works out at £1890. Compared to the depreciation the dealer could reasonably charge on the original car you are getting a bargain. 

Whilst it may have been a frustrating process start to finish and let's face it who has £1890 down the back of the sofa be prepared to find this money to secure a bargain. I would suggest not mentioning depreciation and see if they would accept a reduced mileage rate.

No way should the OP have to pay 45p a mile.  That will be like paying for fuel and insurance twice over.  Sure there is depreciation, but the error is the dealer's in not ordering the car in reasonable time.  Why should the OP pay for their error?

Grumpy_chap

ontheroad1970 said:

angrycrow said:

Assuming I have understood correctly you purchased car a outright with cash in October 2022. The car developed a fault which could not be resolved so the dealer agreed to replace it in January 2023 but forgot to order it. The fault is not so severe as to make the car undrivable and you have continued to have full use of the car. New car has now been ordered. When the new car arrives you will have had 12 months use of the original car. 

In that time the car has depreciated. Using a Ford Kuga as an example one years depreciation appears to be between £5000 and £7000. 

Whilst charging 45p a mile is completely the wrong approach it works out at £1890. Compared to the depreciation the dealer could reasonably charge on the original car you are getting a bargain. 

Whilst it may have been a frustrating process start to finish and let's face it who has £1890 down the back of the sofa be prepared to find this money to secure a bargain. I would suggest not mentioning depreciation and see if they would accept a reduced mileage rate.

No way should the OP have to pay 45p a mile.  That will be like paying for fuel and insurance twice over.  Sure there is depreciation, but the error is the dealer's in not ordering the car in reasonable time.  Why should the OP pay for their error?

While you are correct about the mileage rate, the OP does not appear to have confirmed whether the mileage is all they have been asked to pay for the car they've had for the year or whether there is another charge as well.
If all the OP has been asked to pay is the 45 pence per mile (which works out to under £2k) then that is a very low charge for the use of a brand new car for a year.
Although the calculation basis is flawed, the outcome would seem favourable to the OP.

ontheroad1970

Grumpy_chap said:

ontheroad1970 said:

angrycrow said:

Assuming I have understood correctly you purchased car a outright with cash in October 2022. The car developed a fault which could not be resolved so the dealer agreed to replace it in January 2023 but forgot to order it. The fault is not so severe as to make the car undrivable and you have continued to have full use of the car. New car has now been ordered. When the new car arrives you will have had 12 months use of the original car. 

In that time the car has depreciated. Using a Ford Kuga as an example one years depreciation appears to be between £5000 and £7000. 

Whilst charging 45p a mile is completely the wrong approach it works out at £1890. Compared to the depreciation the dealer could reasonably charge on the original car you are getting a bargain. 

Whilst it may have been a frustrating process start to finish and let's face it who has £1890 down the back of the sofa be prepared to find this money to secure a bargain. I would suggest not mentioning depreciation and see if they would accept a reduced mileage rate.

No way should the OP have to pay 45p a mile.  That will be like paying for fuel and insurance twice over.  Sure there is depreciation, but the error is the dealer's in not ordering the car in reasonable time.  Why should the OP pay for their error?

While you are correct about the mileage rate, the OP does not appear to have confirmed whether the mileage is all they have been asked to pay for the car they've had for the year or whether there is another charge as well.
If all the OP has been asked to pay is the 45 pence per mile (which works out to under £2k) then that is a very low charge for the use of a brand new car for a year.
Although the calculation basis is flawed, the outcome would seem favourable to the OP.

That's only cheap on the basis of deciding to hire a car for year out of choice.  It's not the choice of the OP though - it's the consequence of a faulty car that they would have been driving, had it not been faulty.

m0bov

Tell them to take the car back, refund and go elsewhere.

Grumpy_chap

ontheroad1970 said:

That's only cheap on the basis of deciding to hire a car for year out of choice.  It's not the choice of the OP though - it's the consequence of a faulty car that they would have been driving, had it not been faulty.

The OP had a brand new car which would ordinarily depreciate by far more than £2k in the first year and is only suffering £2k cost but will not have another brand new car, complete with full original warranty and a year younger model so I say it is cheap.
I'd gladly exchange my car when it reached a year old and swap up to another brand new car the same for only £2k payment.
I am not saying the OP should not challenge the 45 pence per mile but they need to be careful what they wish for.  The Dealer could agree to relax the mileage rate but then introduce an alternative calculation that results in a higher cost for the OP.  
The OP is liable to meet some cost for the value of benefit they derived from having the car for the year.

WellKnownSid

Grumpy_chap said:

ontheroad1970 said:

That's only cheap on the basis of deciding to hire a car for year out of choice.  It's not the choice of the OP though - it's the consequence of a faulty car that they would have been driving, had it not been faulty.

The OP had a brand new car which would ordinarily depreciate by far more than £2k in the first year and is only suffering £2k cost but will not have another brand new car, complete with full original warranty and a year younger model so I say it is cheap.

This is a poor justification because the OP never asked for this.

People who spend their hard-earned cash on a new car don't typically anticipate getting a fault one, nor do they anticipate having to find £2k to spend on it less than a year later to swap it for a non-faulty one - which is effectively what the OP is being asked to do.

Let me re-frame this.  Say you were spending £38k on a new car, only to be told it was actually duff and the "working" car would arrive sometime in the next 9-12 months.  You would still have to hand over the full £38k today and drive this one around in this car until the new one arrives.  Consider it an extended test drive, with the occasional random stranding breakdown thrown in.  And, by the way, when it does arrive you'll be paying 45p per mile for all the wear and tear on the faulty one.  It's cheap, right - so would you go for it?

ontheroad1970

Grumpy_chap said:

ontheroad1970 said:

That's only cheap on the basis of deciding to hire a car for year out of choice.  It's not the choice of the OP though - it's the consequence of a faulty car that they would have been driving, had it not been faulty.

The OP had a brand new car which would ordinarily depreciate by far more than £2k in the first year and is only suffering £2k cost but will not have another brand new car, complete with full original warranty and a year younger model so I say it is cheap.
I'd gladly exchange my car when it reached a year old and swap up to another brand new car the same for only £2k payment.
I am not saying the OP should not challenge the 45 pence per mile but they need to be careful what they wish for.  The Dealer could agree to relax the mileage rate but then introduce an alternative calculation that results in a higher cost for the OP.  
The OP is liable to meet some cost for the value of benefit they derived from having the car for the year.

No.  Depreciation  as a cost doesn't work like a chargeable thing like this.  The OP didn't decide to change a car for a period of time.  The loan of the car was because of a fault with a car it was part of fault mitigation.  By all means they could justify an average of the excess mileage usually charged by car lease companies, but not the IR rate for expenses which takes consideration of items that have nothing to do with the dealer at all.

born_again

There is also the point that as OP was rejecting the car here. The dealer could have taken the car at the point of rejection. As clearly the Op was not happy with it.
Yet has managed a further 12 months driving in a car that was rejected.

So some charge for this use is fair. Just a case of arguing just what the amount is.

Grumpy_chap

born_again said:

There is also the point that as OP was rejecting the car here. The dealer could have taken the car at the point of rejection. As clearly the Op was not happy with it.
Yet has managed a further 12 months driving in a car that was rejected.

So some charge for this use is fair. Just a case of arguing just what the amount is.

That's exactly my point.
Some charge for the year is appropriate.
We all seem to agree that 45 pence per mile is not the appropriate calculation.
I was merely saying, however, that basis has resulted in a fairly low charge.  If the OP challenges too hard the outcome might be a higher charge.