OPERATING COSTS OF SIX-WHEELERS.
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New Tables, Supplementing those in Our Issue of December 14th, Giving Costs of Operation for the. Various Types of Six-wheeled Vehicle.
ON the opposite page appears the first portion of a new set of tables of operating costs applicable to one type of vehicle with its variations. These tables are supplementary to those which appeared in our issue of December 14th, 1926, and will be reprinted with them in brochure form. To-day we give costs for six-wheeled vehicles of the articulated type; that is to say; of the type in which the trailer portion (that which carries the load) is mounted on a turntable or similar contrivance on the rear end of the front or tractor portion of the vehicle, and in which at all times the weight on the rear axle of the tractor vehicle exceeds the weight of the axle of the trailer (to use the definition employed in the Finance Act of 1923). Next week we hope to give corresponding figures for the other type, the rigid six-wheelers, which have two closecoupled driving axles instead of one, and in which the frame is in one piece from end to end, as in any other ordinary type of vehicle having only four wheels.
The facts and figures required for these particular tables have been extremely difficult to obtain, hence the delay in the completion of the tables.
Keeping Our Tables Up to Date.
In presenting these new tables we are but continuing the policy which has been followed by The Commercial Motor since its inception—that of keeping its readers fully informed concerning the cost of operating commercial motors according to the actual experience of users, and not merely in accordance with the sometimes roseate views of certain of the manufacturers of those vehicles, although in recent years we have found that the figures supplied to potential purchasers by manufacturers are much more reliable, and, therefore, useful, than they were before the war.
It is this strict adherence to our rule of publishing only figures derived from the actual experience of users which makes it impossible for us to publish figures for new types of vehicle immediately they appear on the market. Naturally, we have to wait until the necessary experience of their running under actual commercial conditions has been gained. That is the reason why we have had to wait so long before putting figures of cost of these sixwheelers into our tables.
Must Include Some Hypothetical Data.
In this connection we have to confess to a certain amount of diffidence in publishing the figures for articulated sixwheelers on pneumatic tyres. There are still very few of them, and it may very well be that those figures which are available are rather one-sided—apt either to flatter that type or disparage it, according to the point of view of the B30 individual. At the same time, if the tables are to be complete these figures should be included, so we include them with this qualification. As time goes on, and our file of particulars of the cost of operating this type becomes more complete, we shall revise the tables, and it will not be long before they are as reliable as the rest. The Commercial Motor tables of operating costs, pubFelted continuously now for over 18 years, are the standard for this country—by them the performances of all commercial-motor vehicles are judged.
Notwithstanding all that we have stated before about our independence of manufacturers' figures it nevertheless remains a fact that we have had a great deal of assistance from them. This . was inevitable, since, with so few, comparatively, of the type in use, it was difficult to get in touch with a sufficient number of users in order to obtain enough figures to justify our referring to them as "average." We must, therefore, acknowledge the generous help received from the following firms ;—'Phe Associated Daimler Co., Ltd., Carrimore Six Wheelers, Ltd., Guy Motors, Ltd., Karrier Motors, Ltd., Scammell Lorries, Ltd., and John I. Thornyeroft and Co., Ltd. All of these have either put us into touch with users, or given us authentic figures obtained from users.
The Method of Assessing Costs.
The Commercial Motor system of costing, on which these tables are based, was explained in detail in connection with the publication of the main body of the tables, which appeared in our issue of December 14th. There is therefore no necessity for us to go into that again in detail. To obviate reference back, however, we will briefly recapitulate.
The first two sections of each table are the essential parts. They are entitled "Running Costs" and "Standing Charges" respectively. Their titles are an indication of their purpose. The first records those items of cost which are affected by the mileage run by the vehicle; the second refers to those expenses which are inevitable and unalterable whatever may be the weekly mileage.
Under the heading "Fuel" is entered the expenditure on petrol, benzole, coal or coke, according to the consumption
of that fuel per mile run. "Lubricants" include all expenditure on lubricating oils and greases. The item of "Pyres" is calculated according to the mileage which may be expected from a set of tyres, the cost of the set being divided by the figure for the mileage per set, thus arriving at the cost of tyres per mile. Under "Maintenance" come all those every-day items of expense, each toosmall to deserve a column to itself. The important item of "Depreciation" is reckoned at so much per mile, because it is our experience that a commercial motor vehicle, not being subject, as is a pleasure car, to the vagaries of fashion, depreciates just according to its rise, neither more nor less.
Of the Standing Charges, the item
" Licences" needs least explanation. " Wages " are given according to current rates. In the case of steam wagons something extra is included for the wages of a mate. The fairness of this has' occasionally, been queried. We adhere to it because, although it is admittedly possible to run a steam wagon with one man in charge, in practice that is done so rarely as to justify a claim that it is not practicable in commercial work. "Rent and Rates" give the average cost of garaging the vehicle. " Insurance " is given according to current rates. "Interest" on first cost is put in as representing that amount which the owner of the vehicle would be able to earn with the money paid for the vehicle if he invested it in securities which called for no work on the part of the investor beyond signing a receipt for the dividend and which are devoid of risk of loss. This, again, is an item which some accountants consider should be left out of the calculations, but the balance of opinion is in favour of its inclusion. However, as the mate is employed as much for help in loading and unloading, we only charge part of his wages to the running of the vehicle.
Basis on Which Items are Calculated.
It may be asked—why any need for " calculation " in connection with tables which are claimed to be based mainly on actual experiences of users and their own figures? There are two reasons why a certain amount of calculation is unavoidable. In tha first place, the prices of essential commodities vary from month to month—vide the violent fluctuations which have taken place in the prices of tyres since we Published our figures only last month. In the second place, some of the items undergo alteration because the quality of the things to which the items refer is improving from time to time. In this connection we may, again, refer to tyres, which have improved tremendously since we first began to publish these tables, so that, in that case, not only has the price of a set of tyres decreased considerably, but the life to be expected from a set has increased to an even greater extent. Our figures for the cost of lubricants, too, are slowly altering. because engines consume much less oil nowadays than used to be the _case, whilst there is also less leakage and wastage from gearboxes and back axles than used to be prevalent.
Petrol is calculated at is. 3d. per gallon; coal at 50s. per ton. OE is reckoned at 5s. per gallon and grease at 8d. per lb. As the price of fuel varies according to the district in which it is purchased, figures are given in the table by the aid of which the user can make corrections in accordance with the price he has to pay. Oil in large quantities is bought at a cheaper rate than the one quoted, but where this occurs it is an easy matter for the fleet operator to modify the figures.
Tyres are priced according to the cur rent lists of the makers. Pneumatic tyres are assumed to last 8,000 miles so far as the covers are concerned, and 12,01)0 miles for tubes. If this strikes readers as conservative, we refer them to amarticle in the (issue of December 14th last for an•explanation of our atti tude in the matter. Solid tyres are taken as lasting 16,000 miles, as our experience goes to show that, on the average, that length of life may reasonably be expected.
Difficulty with Depreciation and Interest.
Depreciation is reckoned on the first cost of the complete vehicle, less tyres, which, of course, appear under running costs. It is calculated that the machine will run 160,000 miles before it is worn out to the point of being too expensive to maintain. Interest is in the same way calculated at 5 per cent, per annum on the first cost of the complete vehicle, again less tyres. We are in this aifficulty, however. The price of a flatplatform body for a 12-ton six-wheeler is round about £100 to £125. Actually, most of these vehicles are bought for special purposes, and have much more expensive bodies fitted. So costly are they liable to be that the items for depreciation and interest are sometimes increased so much as 50 per cent. over and above those which we have given in the tables. Since, however, it is impossible for us to produce figures to cover all types of body, we have given the figures for a platform type, and leave the reader to calculate his own depreciation and interest, according to the initial expenditure on his vehicle, and again to make the necessary modifications in the totals.
Calculating Fair Profits for Hauliers.
Another little difficulty arises in connection with the figures which we give for hauliers' fair charges. In order to arrive at these figures we have to make certain assumptions. Actually, we take certain arbitrary amounts for establish
ment charges and for profits. Now, whilst the establishment charges probably do not vary to any great extent, whatever may be the weekly mileage, it hardly seems fair to assume that the weekly profit should be the Same in the ease of a contract involving only 60 miles per week as in another where the lorry has to complete 800 miles in each six days it is employed.
To vary the figure for profit according to the mileage would be difficult and would introduce complications into the tables. We therefore calculate these charges, as we have always insisted, on the minimum bases. "Under the heading of " Hauliers' Profit" we set down what we regard as the minimum profit which the haulier running this type of vehicle should earn, and on that as a basis we calculate the minimum rates which the haulier should charge for his work. We need only point out that whilst these rates are minima for 60 miles per week, they might very well satisfy most men who have only that distance to cover. On the other hand, we should imagine that most of our readers will agree with us that in a ease where 800 miles per week is run, then these minimum rates are below what is reasonable, and should be varied accordingly. In that event the haulier has only to raise the figures for "Minimum Charges per Week" according to his own ideas of what his profit should be.