I'm rejecting a car - what is a fair deduction for mileage?
My father purchased a used PHEV from a local main dealership in January 2026 for £18000. Just over a month later the car developed a fault which was diagnosed and repaired under warranty. My dad had the car back from the garage for 4 weeks before the same problem occurred again. After 6 weeks the dealership have still neglected to rectify this fault and as such my dad would like to exercise his right to reject the car. The trouble is, the dealership want to charge him £1+VAT per mile for every mile he’s covered. This seems excessive, unfair and disproportionate. What are your thoughts?
Asked on 2 July 2026 by Nick Bradley
Answered by
David Ross
While the Consumer Rights Act lays out the circumstances under which a purchase can be rejected, as it is intended for use across a wide range of consumer goods it does not go into the detail of prescribing a fair rate for mileage deductions on a vehicle.
However, we think the £1 per mile plus VAT is excessive. The standard HMRC business rate for mileage claims is 45p per mile, but this also includes fuel, insurance and tax, whereas you should only be charged for the use you have had from the vehicle. A more suitable comparison is the rate charged by finance companies for excess mileage on PCP or lease deals, which varies between 10p and 20p per mile depending on the nature of the agreement. We would suggest this is a suitable starting point for negotiations, and historical cases handled by the Financial Ombudsman service have cited that a 45p per mile charge for a rejected vehicle is 'unfair', so we would be unwilling to accept an amount equal to or above this.
However, we think the £1 per mile plus VAT is excessive. The standard HMRC business rate for mileage claims is 45p per mile, but this also includes fuel, insurance and tax, whereas you should only be charged for the use you have had from the vehicle. A more suitable comparison is the rate charged by finance companies for excess mileage on PCP or lease deals, which varies between 10p and 20p per mile depending on the nature of the agreement. We would suggest this is a suitable starting point for negotiations, and historical cases handled by the Financial Ombudsman service have cited that a 45p per mile charge for a rejected vehicle is 'unfair', so we would be unwilling to accept an amount equal to or above this.
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