A garage is trying to charge me 45p per mile depreciation for a 10-year-old car. Any thoughts?

What’s a fair depreciation charge per mile when returning a secondhand car to the sales garage? I bought a 10-year-old Skoda with 78,000 miles but, after 6 weeks, it was obvious that the engine was shot having been badly looked after. The garage says it will take it back but wants to charge 45p per mile depreciation - which seems like they’re having a lark. How can a car that cost £4500 with 78,000 be worth only £3500 at 80,000 miles? It seems like they want to charge me with an engine rebuild. Any thoughts? Am I being taken for a ride here? Thanks for any advice.

Asked on 28 June 2021 by Andree

Answered by Dan Powell
45p per mile is an HMRC approved fair mileage rate, which most dealers use in these instances. I would argue 45p is too much for a 10-year-old car, though, so would counter with 25p and see if you can reach an agreement halfway.
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