• TRANSPORT TIPS FOR TRADESMEN.
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Particularly Addressed to Those Who are Replacing Horsed Vehicles by Motors, or Contemplating So Doing.
WHEN PEOPLE first begin to consider the use i i i of commercial motor vehicles t s rather natural that their atten4c:n should be first focussed on the prime cost of the machines. Comparatively speaking, they ar,e often more or less inclined to neglect the far more important matter of operating cogs.
First Cost and Running Cost.
Suppose it is a question of choosing between a vehicle_which costs 2400 second-hand, and has seen, perhaps, four years of service, and a vehicle that costs 21,000 new. Let us assume that the life of each vehicle can be estimated at eight years. We can also safely assume that in the new vehicle there are certain improvements which represent, an advance over the corresponding. details in t5e earlier type. Now, in respect of the second-hand vehicle there remain four years of anticipated life, during which 400 must be written off. We must, therefore, allow 2100 a year depreciation. During the first year's service we must also allow for the loss of interest on 2400 invested in the vehicle. If we put this at 6 per cent. we have an item of 224., making a total of 2124 chargeable in respect of depreciation
and interest. ..
Working things out in the same way for the new vehicle, we must allow 2125 for depreciation and 260 felinterest, giving a total of 2185 and a difference of 261 in favour of the cheaper machine. Now, suppose that the vehicle in either case covers f2;000 miles in the year, and that the old vehicle costs two pence a mile more to rim than the new one. The difference in operating cost will then be 24,000 pence, or 2100, in favour of the new vehicle, so that, on the balance for the year, 239 will be saved 'by selecting the new vehicle instead of the old one.
Why an Inferior Vehicle is More Costly to Run.
A somewhat similar argument can be put forward when we are considering the choice between a first-. class vehicle of somewhat high price and a vehicle of lower price and inferior quality. The latter will not last so long, and will, probably, cost.. more per mile to run. The item for depreciation on its account is quite likely to be higher than the:item for deprecation on account of the more expensive machine. It would, of course, be absurd to 'suggest that it always pays best to buy the highest-priced vehicle. The real question is, which is the best value for money.
Let us look at the subject from another point of view. Supposing a vehicle costs i 21,000, and will cover 200,000 miles in eight years before it is worn out, doing its work at the cost of tenpence a mile (omitting depreciation and interest). Suppose that an alternative vehicle costs 2600, and will run 100,000 miles in four years before it is worn out, at a cost of a shilling a mile. Let us compare these two propositions for a period during which 200,006 miles are covered. Taking the first vehicle, we have an item of 21,000 for first cost. We have a total item of two million pence for operating cost. This is equivalent to 28,333 6s. 8d. Thus, in all we have spent 29,333 -6s. 8d., and we -have sacrificed, on the average, the interest on 2500 st, say, 6 per cent. For this we add a further item ef 230 a year for eight years, giving a total of 29,5'73 6s. 8cL Now, take the cheaper vehicle and consider the cost over the same distance. In running 200,000 miles we shall wear out two such vehicles at a total .c20
cost of 21,200: We shall be sacrificing, on the average, interest on 2300 at 6 per cent., bringing up our total to 21,344. The cost of running wid have been 200,000 shillings, or 210,000, giving a final total expenditure of 211,344, which shows a balance cf about 21,700 saved by selecting the first-class vehicle as against the inferior one. It should be noted that, in both cases, the vehicle cost only represents something in the nature of 10 per cent, of the total-ex . penditure incurred during the life of the vehicle. Even. If we were to get the vehicle half price it would, therefore,' only make about 5 per cent, difference in the total cost of operation. Thus, it is quite clear that it is a great mistake to consider first cost too much and, consequently, not to give enough_consideration to the running costs which will ultimately be involved on a ranch higher scale.
On Purchasing Second-hand Vehicles.
Particularly at the present moment, many newcomers into the ranks of commercial motor users are inclined to start with a second-hand vehicle. The wisdom of this course depends on a number of circumstances., The procedure can never be Wise unless the vehicle purchased is previously 'thoroughly examined on behalf of the purchaser by a really qualified engineer, who can assess its condition and estimate its value, hand judge fairly well the amount of use that it has received. If the buyer only needs, and is only likely to need, one motor vehicle, then the second-hand purchase, carefully made, is quite likely to be sound. procedure. He should, however, be careful -not only to ascertain the condition of the machine, but to find out whether it is of such an obsolete type that there are likely to be difficulties in the way pf securing spare parts for it. Another possible " snag" in the case of a foreign-made madame is that machines of that make may, after a time, no longer be imported and their supplies may be very difficult to get.
Advantage of Avoiding Fleet Complication:
These are points which are fairly easily ascertained. If the purchase is merely to be the first of a series, then we have to remember that when the new vehicles are bought later on the second-hand machine, if of different type and make, means an unnecessary complication in the provision made for maintenance of the whole fleet. A man who wanted 10 vehicles and, inorder to save money, bought 10 second-hand machines of 10 different types and makes, would be asking for trouble and would almost certainly be riding for a fall. -The mixing of fleets by the introduction of second-hand vehicles of other makes is seldom, if ever, good policy, unless one is forced to it in emergency by urgent need and the difficulty of getting prompt delivery of a new vehicle of the desired type.
If the kind of vehicle wanted is something to serve as a light express delivery van, then the buyer in the aecond-hand market must be very cautious. Many machines in this category are really nothing but private car chassis, with van bodies stuck on top of ' them. Some of these may do the work satiafacterily, but many are not strong enough for the loads they
' will be called upon to carry, and that may be the reason". why they are for sale. Moreover, the gear ratios are probably unsuitable and the engines, being most likely of old type, may be very extravagant in fuel. There are a certain number of the more substantial private car chassis that are fairly suitable for van work, but, if the use of these is contemplated, preliminary expert advice is absolutely essential.