Wanna buy a new motor, John?
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NEARLY EVERY operator will have a definite vehicle replacement policy — say five years or 200,000 miles. Vehicle Replacement (Gower; £19.50) by John Sussams examines the economics and thinking that should go into the decision.
The book makes a convincing case for planned replacement, pointing out that waiting until you are compelled to replace a vehicle is invariably an expensive option. In 102 pages John Sussams sets out the parameters that influence the replacement interval and reminds the reader that the optimum policy is that which leads to the minimum total operating cost — a good deal on a new unit may be a tempting carrot but might not be the wisest move in the long run.
By the use of examples (drawn from cars and commercial vehicles) the book shows that a four-year "short-cycle" policy may cost the same as a sevenyear "long-cycle" policy; it is the proportion of maintenance and depreciation costs that vary. Terms such as straight-line depreciation and the reducing balance method are explained in simple language.
While containing no great secrets, the book would help the formulation of a well-reasoned replacement interval. If it does no more than confirm that your existing policy is right, it will at least make a convincing case for your accountant.
Bearing in mind the subject, for the most part the book is very readable.
Gower Publishing Company, Gower House, Croft Road, Aldershot, Hampshire GU11 3HR. • DW