Milage deduction

Mikeyb1984

In need of advice . I purchased a car back in February. I reported faults to the garage within the 1st few days of having the car and told them I wish to return the car . To cut a very long story short it's taken till now to get them via my finance broker to have the car back as the garage was forced to do a independent mechanics test which found a fault with the car prior me purchasing it . A few days ago the garage weirdly reported the car "stolen" while in there possession. They have requested the roa from my finance broker which is brill news as they will be clearing my finance and all goes back Asif I didn't have the car ( happy me ) but they have requested a deduction in milage now considering not just the fact that miles were added backwards and forwards from the garage to get numerous things looked at but I'm also now confused how they can request a deduction on a car that is now longer in mine or there possession as it is now "stolen" . Any help would be much appreciated.

Woodstok2000

Within the first 30 days, if you reject under the short-term right to reject – whether it's a used car or a brand-new one – no deductions are allowed. You're entitled to a full refund with no reduction for use whatsoever. This is explicit in Section 22 of the Consumer Rights Act 2015. If the dealer tries to deduct for use within 30 days, refuse and cite the law – there is no ambiguity here.

After 30 days, if you reject following a failed repair under Section 24, deductions may be permitted – but only if the goods have actually been used, the deduction is calculated proportionately, and it accounts for your reasonable use only. The key word is "proportionate" – not whatever the dealer feels like charging.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6679644/milage-deduction

After saying you want to reject the car did you continue to use it? As soon as you rejected it ceased to be your property and so the only acceptable use would be simply to return the vehicle to them.

If you didnt use it then the CRA doesnt allow them to charge anything for a rejection within the first 30 days. If you did continue to use it then "usage" most likely is acceptable and mileage is a common mechanism to judge usage with a motor vehicle

Grumpy_chap

In need of advice . I purchased a car back in February. I reported faults to the garage within the 1st few days of having the car and told them I wish to return the car . To cut a very long story short it's taken till now to get them via my finance broker to have the car back as the garage was forced to do a independent mechanics test which found a fault with the car prior me purchasing it . A few days ago the garage weirdly reported the car "stolen" while in there possession. They have requested the roa from my finance broker which is brill news as they will be clearing my finance and all goes back Asif I didn't have the car ( happy me ) but they have requested a deduction in milage now considering not just the fact that miles were added backwards and forwards from the garage to get numerous things looked at but I'm also now confused how they can request a deduction on a car that is now longer in mine or there possession as it is now "stolen" . Any help would be much appreciated.

I assume the stolen matter is being dealt with under the Dealer's insurance and they are not expecting you to claim under your personal policy?

MRNT would be able to advise whether your insurance could be liable regardless.

If you continued to use the car since the first issue was reported up until now, then some charge for that beneficial use received is appropriate. Do you know how many miles had been covered whilst the car was in your ownership?

As for how much, a rate similar to PCP excess miles might be appropriate - 10 ppm / 12 ppm?

facade

The car has more miles on it than when you bought it, and is therefore worth less, their insurance will pay out less for it.

They are entitled to make a reasonable charge for mileage to offset some of their losses caused by that mileage.

Goudy

This is not a rejection of a faulty car, it's a theft while in the care of the dealership. Mileage deduction or evaluation of the vehicle is down to the insurance company.

It's a case of the dealer claiming on their own insurance and that insurance settling the finance. There could be a short fall in settlement or even capital when the outstanding finance is settled.

Apart from any excess on the dealers policy, this shortfall between finance settlement and insurance payout is what the dealer would be liable for.

You have had the car since February so you have made 5 or 6 payments already, so the settlement figure will be slightly less than the invoice price of the car once the finance company adjust the interest on the outstanding capital. So you've effectively paid "mileage" as you have made monthly payments towards it.

I would say that's not my problem if their insurance didn't cover their own liability.

If the car was in their care and their insurance didn't cover their liability, it's not your fault.

But if they keep insisting, I would ask for proof of any shortfall between insurance settlement and finance company (not counting their excess) before entertaining the possibility of paying anything to the dealership and ask them to confirm if the settlement is more than the outstanding finance, that they pay you that part back.

Mildly_Miffed

Yes, deductions for mileage and use are absolutely permitted. You've had the car six months. How many miles did you cover in it?

Mikeyb1984

It's only been used to go backwards and forwards from work about a 8 mile round trip only other usage has been the numerous times iv had to drive it back to the garage . Plus they've had the car for the last 6 weeks dragging there feet with the mechanics report . So really overall it's been 5/ 6 months but take the 6 weeks out plus the other amounts of times they've had it to do " repairs " iv probably only had the car 4 months max in my possession

QrizB

So really overall it's been 5/ 6 months but take the 6 weeks out plus the other amounts of times they've had it to do " repairs " iv probably only had the car 4 months max in my possession

If you've been using the car for 4 months, you're well past the original "30 days" period and so yes they're allowed to make a proportionate deduction for use.

Mildly_Miffed

https://forums.moneysavingexpert.com/discussion/comment/82101500#Comment_82101500

So about 700 miles in four months. Heading for 2,500 miles/year.

This kind of use is quite simply TERRIBLE for cars… Barely getting up to working temperature.

It also means the per-mile cost is high, because the fixed costs are amortised over very low use.

You don't mention the age of the car… Because a lot of issues may simply be perfectly expected wear and tear, if it's older. I assume you wouldn't be buying a new or near-new car for that kind of use, because once you add the depreciation in, the cost per mile would be absolutely stratospheric. Clearly, the per-mile depreciation on an older car is far lower than on a newer one.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/82101500#Comment_82101500

So you have used it after the 30 days and so yes, they are legally entitled to reduce the refund for "use". The law doesnt state how use is calculated but miles the cars been used for is an obvious option as a basis of the calculation