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What is a reasonable fair use deducton when rejecting a used car?
I am in the process of rejecting a faulty used car. I purchased it six weeks ago from a dealership but my local garage has identified £2,000 worth of problems that are linked to corrosion.
The dealer has agreed to take the car back but wants to keep £1000 of my refund, claiming it is a "fair use deduction". I paid £3450 for the car and feel it is unfair that the dealer wants to charge me 45p for every mile I've covered over the past six weeks. What should I do to get a better refund?
The dealer has agreed to take the car back but wants to keep £1000 of my refund, claiming it is a "fair use deduction". I paid £3450 for the car and feel it is unfair that the dealer wants to charge me 45p for every mile I've covered over the past six weeks. What should I do to get a better refund?
Asked on 24 January 2023 by Simon Garrett
Answered by
Dan Powell
The 40p - 45p per mile is often quoted by dealerships as a "fair" mileage rate deduction. It is loosely based on the HMRC mileage rate of 45p per mile for people who use their own cars for work and is intended to cover fuel, insurance and tax (all pf the things you've already paid for yourself). It is not suitable as a ballpark fair use deduction when rejecting a used car.
Given that you spent £3450 for the vehicle just a few weeks ago, I think it's unfair that the dealership is demanding to keep almost a third of your cash due to the car being faulty.
I would argue that 25p per mile is a fairer rate. If the dealer refuses, ask if they are a member of any trade organisations that will act as a conciliation or arbitration service. Many trade associations will require the dealership to sign up for a code of practice that they will need to adhere to or face removable from the trade group.
Given that you spent £3450 for the vehicle just a few weeks ago, I think it's unfair that the dealership is demanding to keep almost a third of your cash due to the car being faulty.
I would argue that 25p per mile is a fairer rate. If the dealer refuses, ask if they are a member of any trade organisations that will act as a conciliation or arbitration service. Many trade associations will require the dealership to sign up for a code of practice that they will need to adhere to or face removable from the trade group.
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