Q We are regular users of your annual
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Tables of Operating Costs and find them extremely valuable. A question has arisen that in comparing the cost, and in particular the depreciation cost of 1-ton and 2-ton diesel vans, the tables for 1967 and 1968 are as follows for a van doing 400 miles per week, or more:
1-ton diesel 2-ton diesel
1967 1968 1967 1968 Depreciation in pence per mile 1.74 2.31 2.25 2.45 It has been pointed out to us that whereas the increase between the two years for a 2-ton van represents approximately 9 per cent, the increase in the depreciation rate for a 1-ton van in the same period is over 30 per cent, the increase in absolute terms in the case of the 1-ton van being over -}d per mile.
Could you suggest to us the reasons for such a wide disparity between the two figures?
AWhen compiling the tables, an average
price for each class of vehicle is obtained by selecting as wide a range A possible of currently popular and available vehicles in that class. If, however, between one year and another there are price increases on certain models or new models are introduced of higher than average cost, then this increases the overall average of the range. For this reason it is possible to obtain this difference between models and between years.