Light Heavyweights ENTER THE RING
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Relative Economy of Latest Type of Goods 'Vehicle Compared with Timehonoured Models
ONE of the trends to be discerned at the Commercial Motor Show was the increase in the number of goods vehicles which might be called light heavyweights. As I mentioned last week when noting the wide gap between the price of the popular 7-ton oiler of around £2,000 and the heavy six-wheeler at £4,500, there has persisted until recently a heavy line of demarcation between these two classes of vehicle. A similar marked differential exists between the popular 7-tonner and the 8or 9-ton four-wheeler at nearly double the cost, although it is admittedly a totally different type of vehicle.
Although the range of eight-wheeled rigids has for many years offered the prospective buyer a good selection of models by.various manufacturers, it has tended to be confined, within comparatively narrow limits, to a single group relative to both unladen and gross weight.
It is debatable, however, whether such a clear demarcation is always, or even commonly, discernible in operators' traffic characteristics, from which should stem economic commercialvehicle design.
Proved Their Worth For use where maximum loads have to be carried under severe operational conditions, the " heavy " fourand eightwheeled rigid& have proved their worth for many years. With changing 'trading conditions, however, it is conceivable that there will be an appreciable demand for these two maximumload vehicles capable of giving reliable service when carrying a 14-ton or 24-ton gross load but not under the.severe operating conditions. An operator, such as a C-licensee, wishing to carry maximum loads would not -always require the same margin of robustness, in constiuction which overseas buyers understandably demand.
It was therefore encouraging to see additions to the light heavyweight range of vehicles at the Show, and it is now proposed to compare the estimated operating costs of the traditional heavy vehicle as opposed to the more recently designed light heavyweight versions of the maximum-load fourand eight-wheelers. In so doing, however, no reflection is made on the high reputation gained by the traditional heavy version.
Dealing first with the heavy four-wheeler designed to operate at a maximum gross weight of 14 tons (and sufficiently powerful to be used for drawbar trailer work if necessary), an average price would be around £3,500. With an unladen weight of 4 tons 15 cwt. the cost of the annual licence duty would be £65, or the equivalent of .£1 6s. per week after allowing for two weeks per annum when the vehicle was not operating.
Assuming for the moment that a drawbar trailer was not a30
used, the weekly cost of wages is estimated at £9 6s. 3d. This would include allowances for contributions to National Insurance, employers' voluntary liability insurance and holidays with pay. The basic rate is determined by those applicable to Grade 1 in R.H. 64. Rent and rates in respect of garaging are nominally assessed at Its. per week.
The amount paid for vehicle insurance can vary widely, depending, amongst other factors, upon the users' area of operation and previous accident record. Assuming in • this instance that comprehensive insurance is taken out in a mediumrisk area, the annnal premium would cost £66, or £1 2s. id per week. Interest at 3 per cent. on the initial outlay would add "a further £2 2s, to the weekly standing costs, which would thus total £14 7s. 4d. Assuming 800 miles per week are averaged, the cost per mile would be 4.31d.
Fuel and Lubricants The largest item of running costs, namely fuel, is estimated to cost 3.83d. ber mile, based on a consumption rate of 12 m.p.g. and a cost per gallon of 3s. 10d. Lubricants are assessed at 0.26d. per mile. With a set of tyres costing around £320, tyre cost per mile would be 2-.56d. on the basis of an assumed life of 30.000. Maintenance is reckoned at 2.43d. per mile. •
in keeping with this class of vehicle, a mileage life of 250,000 could be reasonably expected. Deducting the cost of the set of tyres from the initial price • of the vehicle and assuming a residual value of 121 per cent, was obtained when the vehicle was finally disposed of, a balance of approximately £2,740 remains to be depreciated, or 2.63d. per mile.
The five items of running cost thus total 11.71d. per mile, which, when added to the operating cost of 4.31d. for an 800-mile week, gives a total operating cost of 16.02d.
As it is already possible to obtain a 7-ton oiler for around £1,800 to £2,000 with an unladen Weight of just over 3 tons, it would not seem unreasonable to expect that a 9-ton tier not required for drawbar trailer work could be produced within the 4-ton unladen weight category at £2,750. The price of such a vehicle would then be midway between that of the 7-tormer and the traditional heavy four-wheeler.
The first item of standing cost—licensing—would then be £50 per annum, or £1 per week. Wages would remain the same at £9 6s. 3d. as whatever load was carried would come within the Road Haulage Wages class of category of 5-10 tons.
Similarly, relative to the overall dimensions of the two vehicles, rent and rates would still be assessed at 1 1 s. per week.
As the amount of premium payable on insurance is dependent both upon the carrying capacity and initial cost as well as other factors, the amount in this instance will be slightly less, namely 153 per annum, giving a weekly cost of £1 Is. Interest at 3 per cent, on the reduced initial cost of £2,750 will amount to £1 13s. The total for these five items of standing cost is thus £13 lls. 3d. Again assuming that 800 miles per week are operated, standing cost per mile would be 4.07d.
Because of the lighter construction, some improvement in the rate of fuel consumption could be expeted, and this will now be assessed at 13 m.p.g. With the cost per gallon remaining the same at 3s. 10d., fuel cost per mile thus becomes 3.54d., whilst lubricants are again assessed at 0.26d.
Some slight reduction in the cost of a set of tyres might also be expected, and this is now assessed at £275. This results, incidentally, not from under-tyring the present model, but rather from the tendency to fit oversize tyres to the heavier • model compatible with the more exacting conditions under which it might be expected to operate. With the mileage life remaining at 30,000, tyre cost per mile will thus become 2.20d.
Frequency of Replacement
Maintenance costs per mile are assessed at 2.43d. on the assumption that any increase in frequency of replacement—if, in fact, it did occur—would be offset by the lower cost per unit or spare. Calculation of depreciation must inevitably be a matter of some conjecture. Because of the lighter construction, a lower mileage life must naturally be expected, as compared with the heavier model. However, as it is not intended to be operated under such arduous conditions this, to some extent, would provide a balancing factor. It will therefore be arbitrarily assumed that a mileage life of 200,000, as compared with 250,000 for the heavier model, is obtained. Proceeding as before to deduct the cost of the set of tyres and the ultimate residual value, a balance of £2,130 remains to be written off, giving a depreciation cost per mile of 2.56d.
Running costs thus total 10.99d. per mile which, with the addition of the running cost of 4.07d., gives a total operating cost of 15.06d. per mile on the basis of an 800-mile week. Compared with the heavy version, this shows a reduction of almost Id. per mile in the total operating cost. Alternatively, the total cost of operating the heavy version 800 miles would be £53 8s., against £50 4s. for the lighter version, a saving of £34s.
Making a similar comparison between traditional heavy eight-wheelers and the more recently introduced lighter models, the initial cost of the former version would be around £4,890. With an unladen weight of 7t-7+ tons, annual licence duty now costs L120, or £2 8s. per week. Wages will now be in the highest category of 15-18 tons with a cost per week of £9 19s. 10d., making allowance for insurance contributions and holidays with pay. Because of the increase in overall length, rent and rates now become 13s. per week.
As a result of an increase in both the initial cost and the carrying capacity, the annual insurance premium for this eightwheeler will be approximately £107, or £2 4s. per week. Similarly, interest on
initial outlay now becomes £2 18s. 8d. per week. The total standing cost per week is thus £18 3s. 6d. Assuming, because of the type of vehicle, the average weekly mileage is now 1,000, the standing cost per mile would then be 4.36d.
On a basis of a fuel-consumption rate of 9 m.p.g. with the cost per gallon of oil fuel remaining at 3s. 10d., fuel cost per mile will be 5.11d. Lubricants are assessed at 0.28d. per mile.
Calculating Depreciation
The cost of a set of tyres for this multi-wheeler is naturally high, namely £640, giving a tyre cost per mile of 5.12d. assuming a life of 30,000 miles, as before. Maintenance is assessed at 2.38d. per mile. (This apparent anomaly, as compared with 2.43d. per week for the smaller vehicle, is due to the higher weekly mileage, namely 1,000, as compared with 800 for the four wheeler.) Calculating depreciation by the same formula as before, namely the deduction of the cost of the initial set of tyres and the ultimate residual value, the cost per mile becomes 3.57d., assuming a mileage life of 250,000.
With a total running cost of 16.46d. per mile, the total operating cost becomes 20.82d. per mile when 1,000 miles are covered during the week.
Examples of lighter versions of the rigid eight-wheeler already announced have unladen weights of approximately 6*-64 tons. With an annual licence duty of £100, the cost of this item of standing cost would now amount to £2 per week. Wages remain the same at £9 19s. 10d., as do rent and rates at 13s.
Because of the lower initial cost of the vehicle, the insurance premium would be slightly reduced to £105, or £2 2s. per week. Interest on the initial outlay would similarly be less at £2 Ils. The weekly total for the five items of standing cost would be £17 5s. 10d., or 4.15d. per mile, again assuming a weekly average mileage of 1,000.
Fuel consumption could reasonably be expected to be slightly better than with the heavier version and will be rated at 9.5 m.p.g. Fuel cost per mile would therefore be 4.84d., whilst lubricants are again 0.28d. For the same reason as with the four-wheeler, the cost of a set of tyres is assumed to be slightly less at £600, giving a tyre cost per mile of 4.80d., whilst maintenance is again reckoned at 2.38d. per mile.
Depreciation is calculated by the same formula as before, with a reduced mileage life of 200,000, as opposed to 250,000 for the heavier vehicle. This gives a depreciation cost per mile of 3.74d. and a total running cost per mile of 16.04d. When added to standing costs, the total operating cost per mile becomes 20.I9d, relative to 1,000 miles per week.
The lighter version therefore shows a reduction of 0.63d. per mile on the total operating cost, the comparative cost per week being £86 15s. for the heavier vehicle and £84 2s. 6d. for the lighter version, a difference of £2 12s. 6d. per 1,000-mile week. Allowing for two non-revenue-earning weeks, this saving would
. amount lo £131 5s. over a year. S.B.