10-cwt. Oilers Could Save Money
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DURING the past 20 years the number of goods vehicles in use in Great Britain has grown from around 500,000 to 1,250,000, an increase of 150 per cent. Corresponding figures for buses and coaches are 53,000 and 78,000, an advance of 47 per cent. Yet even these significant rates of expansion have been far surpassed by the rate of change-over to oilengined vehicles, which, moreover, has been superimposed on the overall increase of vehicles.
In .1938, 8,621 goods vehicles (1.7 per cent.) had 'oil engines. Now there are more than 170,000, or nearly 20 times as many. Similarly; the proportion of passenger oilers has risen from 19.7 to 68.4 per cent. Figures of new regiStrations (as distinct from the total numbers of licensed vehicles just given) are even more striking. In September, 1958, for example, 2,942 of 12,910 goods vehicles registered for the first time were oilers-22.8
per cent. .
The inference is that the range of Vehicles to which oil engines are now being fitted is steadily widening. Even in the category of goods vehicles with unladen weights between li and 2 tons, the trend continues_ In the first nine months of 1958 the number of goods vehicles in this class registered for the first time was nearly equally divided between 2,449 petrolengined vehicles. and 2,405 oilers (excluding 30 electrics). In the same period 1,754 oilers with unladen weights below If tons were registered.
Operators. who have long since recognized the advantages of the oil engine when' fitted to the medium or heavy range of commercial vehicles have until recently had little opportunity of purchasing an alternative to the petrol-engined version of the 10-cwt. or 15-cwt. van. Now that an oil engine is available of suitable size for fitting to these vehicles, the economies of such conversions merit consideration.
Briefly running through the points in favour of the oil engine, fuel economy has, of course, always been pre-eminent. Moreover, on the type of work on which delivery vans are normally engaged, this advantage is increased, Whereas fuel consumption of the petrol engine rises with a corresponding increase in stop-and-start work, this does not apply to the oil engine.
Maintenance is another item of running cost in which the oil engine shows to advantage. With the widespread adoption by manufacturers of the engine-exchange system, operators are naturally taking advantage of it. Even so, both time and expense are involved in successive engine changes. In contrast, an oil engine would probably have a life of more than 100,000 miles before needing major repair.
Closely allied to the engineering aspect of overhauls is the important factor of vehicle availability. Preventive maintenance may be so well organized that breakdowns seldom occur. Yet the apparent efficiency of the system tends to obscure the extent of "downtime" when the vehicle is off the road, scheduled though it may be. In comparison, the vehicle which requires much less servicing—as-one with an oil engine undoubtedly, does—is 'available to, earn its keep more days in the year.
Although 10-15 cwt. vans are only now being fitted with oil engines there is an additional reason, peculiar to their class, why such conversions are particularly advantageous.. Of all commercial vehicles, they are the ones mostly owned singly by the _butcher . or the baker; When the vehicle is off the road deliveries' stop. -A power unit which could last the life of a _ vehicle without major overhaul would be particularly attractive to this class of operator.
The •fleet 'owner—whether' goods or passenger—could also benefit for the same reasons, hut in a different application. His service van is often in the 10-15-cwt. category, and, despite his large fleet, it is irreplaceable, because it is the only one of its type. Additionally, as long as it remains petrol-engined, whilst the rest of the fleet are oilers, the operator has to choose between two inefficient methods of fuel supply. Either he accepts the disproportionate expense of bulk storage for one vehicle or buys petrol, possibly premium grade, at retail price. Neither course would appeal to the efficient operator.
As to the operating costs of a 10-cwt. van when fitted alternatively with petrol or oil engine, the petrol-engined version would have an initial price of about 1550. With an unladen weight of .17 cwt., the annual duty would be £15, or -6s. per week. Wages will be assessed at 18 19s. per week, based on the R.H.(64) rate applicable to an adult worker in Grade 1 areas, Allowance is also included for holidays with pay and insurance contributions.
Rent and rates are nominally assessed at 7s. per week and vehicle insurance at 7s. 6d. based on an annual premium of £18 10s. Interest at 3 per cent, on the initial outlay would add a further 6s. 7d„ making a total for these five items of weekly standing costs of £10 6s. Id. The standing cost per mile, varying according to the weekly mileage, would thus be: 200 miles per week, 12.36(1.; 400 miles. 6.18d., and 600 miles, 4.12d.
Fuel is not only the most important item of running costs, but its cost can vary widely in this particular type of operation according to the source of supply. I will assume in the initial comparison that fuel, both petrol and oil fuel, is purchased in bulk, and that standard-grade petrol is used. The current price of standard spirit in the inner zone is 3s. Hid. per gallon and, assuming a rate of consumption of 20 m.p.g., the fuel cost per mile will be 2.30d. Lubricants are reckoned at 0.14d. per mile.
A set of tyres would cost around £40 and, assuming a Mileage life of 20,000, the cost per mile would be 0.48d. Maintenance is assessed at 0.85d.
Ultimate Value
In order to calculate the cost of depreciation the nominal cost of the original tyres must first be deducted from the initial price of the vehicle. This leaves a balance of £510 and assuming that the ultimate re-sale value is £50, a net amount of £460 remains to be written otr. Some difficulty arises in endeavouring to estimate a fair average life for this class of vehicle. For larger quantity-produced vehicles a figure of 125,000 miles is accepted, but for the 10-cwt. van a life of 100,000 miles will be assumed. The resulting cost of depreciation per mile is 1.10d., making the total running cost 4.87d. per mile.
Where the basic assumptions are applicable, the total operating cost per mile for the 10-cwt. petrol-engined van will be: 200 miles per week, 17.23d.; 400 miles, 11.05d.. and 600 miles, 8.99d.
Although the oil-engined version may be slightly heavier, the difference would not be sufficient to affect taxation and the weekly cost of licensing would remain at 6s. Wages, would likewise remain at £8 I 9s., rent and rates at 7s., and vehicle insurance at 7s. 6d. After allowance has been made for the estimated re-sale value of the existing petrol engine, the cost of conversion to oil power would be approximately £200. With an initial overall cost of £750, the interest charge is correspondingly increased to 9s. per week.
Total standing costs per week of these five items is thus £10 8s. 6(1., with corresponding cost per mile as follows: 200 miles per week, 12,51 d.; 400 miles, 6.25d., and 600 miles, 4.17d.
There are varying opinions as to the precise advantage in terms of fuel consumption to be gained by conversion to oil engines. Estimates of increases in the mileage per gallon thus obtained ranee from 50 to t00 per cent. Taking the mean of 75 per cent., the rate of fuel consumption would be 35 m.p.g. Based on the corresponding bulk price for oil fuel, in the inner zone, of 3s. 101cl. per gallon, fuel cost per mile becomes 1.32d. Lubricants are again assessed at 0.14d, The rate of tyre wear is reckoned fractionally higher at 0.53d. per mile. Maintenance, however, is calculated to cost 0.57d. per mile, compared with 0.85d. for the petrol-engined van. This is because, apart from requiring less frequent service than the petrol engine, the oil engine will probably last the life of the vehicle. During the same period, however, two replacement petrol engines will probably he needed.
Adopting the same procedure as before, depreciation cost per mile becomes 1.46(1., the increase resulting from the higher initial cost of the converted vehicle. The running costs per mile are 4.02d. and the total operating cost per mile 16.53d., 10.27d. and for weekly mileages . of 200, 400 and 600 respectively.. (Incidentally, to avoid undue complications in this comparison, the slight increases normally introduced into the items of maintenance and depreciation when weekly mileages are low, have purposely been omitted in both cases.)
Premium Spirit Even with weekly mileages as low as 200, the oiler yields a saving, of 0.70d. per mile on the total operating cost. The amount increases to 0.78d. at 400 miles per week and 0.80d. per mile at 600 miles' per week. All this is OD the assumption that • it is possible to operate the petrol-engined vehicle satisfactorily 011 standard-grade spirit. Many of these small vans. however, are built on what is virtually a car chassis and with. the high-compression ratios common to this type of vehicle today it may be necessary to use a premium spirit.
Alternatively, as mentioned earlier, the 10-cwt. van might be the only petrol-engined vehicle in an otherwise oil-engined fleet, with the result that fuel has to be obtained from a retail supplier. In either event the price per gallon will be increased to 4s. 2id. or 4s. 3d. and the fuel cost per mile at 20 m.p.g. will then become 2.54d, or 2.55d, Taking the lower of these two figures, the saving in favour of the oil-engined vehicIfe at 400 miles per week is 1.02d. per mile.
in comparing the two sets of costs applicable to the petrol and oil-engined versions of the 10-cwt. van it should be noted that account has already been taken in both the items of interest and depreciation of the additional £200 required to effect the conversion. Having thus weighted these two items of costs against the oil-engined version, any economy in overall operating cost which this vehicle can still show as compared with the petrol-engined van must be a clear saving to the operator. The conversion would in fact prove profitable.
Moreover, direct comparison of operating cost per mile precludes an additional advantage that may accrue to the operator of an oil-engined van because of its extra availability for service resulting from the reduced maintenance required. This may be of vital interest to the small trader or other onevehicle owner.