When Mor rehicles Cost Less
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AREADER asks for advice on estimating for a contract involving vehicles engaged on site work. Three drivers would travel by a 5-cwt. service van to collect their tippers based nine miles away. They would then proceed a further nine miles and commence work on the site at 8 a.m. and continue until 4.30 p.m., less the statutory half-hour break for a meal. On return home the reverse procedure would apply.
The tippers are, I am told, taxed at £30 a, year, whilst insurance costs a farther £30. The reader states that the petrol-consumption rate on these 5-tonners is 10 m.p.g. and approximately 10 gallons of fuel per day are consumed. The fuel-consumption rate of the 5-cwt. petrol-engined van is given as 30 m.p.g., whilst the amount of licence duty payable is £12 10s. a year.
Dealing first with the operating costs of a 5-ton tipper, licence duty would amount to I2s. per week, whilst wages would be .18 19s. for a 44-hour week based on R.H.(64) in Grade 1 areas. This figure includes allowances for holidays with pay and insurance contributions.
Standing Costs EH 10s. 3d. a Week
Rent and rates will be nominally assessed at 12s. 10d. per week assuming that some covered accommodation is provided at least at the week-ends, even though the vehicles may possibly be left outside during the week. On the figures quoted by the reader, vehicle insurance will amount to 12s. per week, calculated on a 50-week year, thereby allowing for at least two weeks when the lorry may be off the road for major overhaul. Interest charges add a further 14s. 5d., making the total for these five items of standing cost £11 . 10s. 3d. per week. Assuming a five-day week, this would be the equivalent of £2 6s. ld. per day.
Because of the peculiar circumstances of site work, it will be more convenient on this occasion to calculate running costs per day rather than per mile. Fuel consumption is given as 10 gallons per day, which at 3s. 10d. per gallon amounts to £1 I8s. 4d., whilst lubricants will be reckoned at 2s. per day. For normal road work, tyre costs for this type of vehicle would be reckoned at 1.28d. per mile. Allowing a 50 per cent. increase for site work, and assuming running equivalent to 100 miles per day, the total tyre cost would be I6s, per day.
A similar increase on standard maintenance costs would result in this item of running costs amounting to £1 5s. 10d. a day, whilst depreciation will be reckoned at £1 Is. 7d. Total running costs per day would then be £5 3s. 9d., making the total operating cost per day £7 9s. 10d. The corresponding cost for the three tippers would thus be 122 9s. 6d. per day.
The operating costs of the 5-cwt. petroI;engined van have also to be calculated. Even if it were Used for other purposes, the average weekly mileage must obviously be low, because for much of its time it would presumably remain at the inter n30 mediate change-over point. Assuming this mileage to be 200, the five items of -standing costs per week would be: Licences, 6s.; wages, £8 19s.; rent and rates, 6s. 6d.; insurance, 6s. 3d.; interest, 5s. 7d.; tOtaI, £10 3s. 4d. The, inclusion of wages in this instance is admittedly debatable, but the alternative would imply that the van was used exclusively on this contract, with resulting higher costs.
Running costs, this time per mile, would read: Fuel, I.55d.; lubricants, 0.15d.; tyres, 0.36d.; maintenance, 0.95d.; depreciation, 1.304; total, 4.31d. Total operating cost per mile at 200 miles per week is, therefore, 16.5ld. As the return daily mileage is 18, the cost per day for the use of the van will be £1 4s. 9d.'
The total' daily operating cost of the three tippers and small van would be £23 14s. 3d. To this would have to be added establishment costs appropriate to the reader's organization and a profit margin before a charge could be formulated.
A SOFT-DRINK manufacturer operating 18 vehicles inquires whether there would be any advantage in changing over to oil engines. His present fleet consists of 14 5-tanners and four 4-tonners,,and the average yearly mileage is around 10,000 per vehicle. Operating within a maximum radius of 50 miles from base, an average journey includes 20 .deliveries. Comparative fuel, maintenance and operating costs are requested. The following extracts from " ' The Commercial Motor' Tables of Operating Costs" apply:
In addition to an overall lower fuel consumption, the oilgined vehicle is at a particular advantage on low-mileage, rt-and-stop work, such as is implied here. This is because ereas the consumption of the oil-engined vehicle tends to nain the same under such conditions, that of the petrol ;ine increases. As indicated in the items of cost given, it is terally accepted that oil-engined vehicles require less intenance and provide an overall operational advantage.
ROBLE MS arising out of the use of dual-purpose vehicles, or the proposed conversion of vehicles from one classificato another, continue to puzzle readers. Thus, a recent [Wry reads: – ' I wish to run my dual-purpose vehicle to visit customers I to carry certain goods for sale and, in addition, shall be lecting items for repair. Do I have to have a C licence?
s I restricted to 30 m.p.h. whets carrying goods? If a icence is necessary, am I restricted to 30 m.p.h. at all times? s I allowed to advertise on the body side and tailboard, ivided do not blanket the side windows?"
-te adds that he has been running a van until now and had nod the speed restriction irksome, particularly as it was enlistl that he should give efficient service to his customers. o C licence will be necessary while the goods carried are Ifined to personal belongings and samples, but as soon as xis were carried for sale, no matter how small the quantity how rare the occasion. a C licence would be required.
fhe speed limit of a vehicle is now determined by its conaction, and not by its use. In this context, dual-purpose licks are classed as private cars and are, therefore, not serned by any speed limit other than in restricted areas. The play of a C-licence disc does not in any way restrict a dual-pose vehicle to 30 m.p.h.
S. dual-purpose vehiele is defined in the Motor Vehicles iriation of Speed Limit) Regulations. If the body was isequently altered so that it no longer came within this inition and was, in fact, converted into a van, it would then restricted to 30 m.p.h. If. however, the proposed advertisepts were applied to the existing sale panels of the il-purpose vehicle, the question of speed limit would not sear to be involved.
IS a van purchased and licensed for private use still subject I to the 30 m.p.h. limit? Can windows be fitted to the sides of a van when it is not More than two years old without paying purchase tax and would this affect the speed limit? If a used van which has previously been operated on a C licence is purchased, can it be re-licensed for private use?
The 'rule of determination of speed limit by construction. and not by use, still applies. Whether licensed for private use or not, a van would be limited to a maximum of 30 m.p.h. because it was a goods vehicle.
It is the duty of anyone converting a van—no matter of what age—by fitting side windows, for example, to notify the local office of the Customs and Excise, who will then determine what additional purchase tax is payable. If the alterations are such that the van then complies with the definition of a dualpurpose vehicle as set out in the Motor Vehicles (Variation of Speed Limit) Regulations, it would no longer be subject to a speed limit of 30 m.p.h, Registration of a van as a goods vehicle by a previous owner would not prevent any subsequent user from re-licensing it for private purposes.
Briefly summarizing the position regarding conversion, one can either pay the additional purchase tax (60 per cent. on the whole vehicle) applicable to private cars or dual-purpose vehicles and thereafter be free from any speed restriction. or take advantage of the lower purchase tax on goods vehicles (including vans)-30 per cent, on the chassis only—but be restricted to 30 m.p.h, There is no way of being free from both the higher rate of purchase tax and speed restriction.
THE cost of operating an 8-ton tractor unit, together with two pantechnicon semi-trailers, is the subject of the next inquiry. The initial cost of the tractor is stated to be around £1,625, whilst the semi-trailers cost £900 each. Weekly mileage is expected to average between 600 and SOO.
With a total unladen weight of 5 tons, the annual cluts, payable on this outfit would be £70, the equivalent of £1 8s. per week. As it is intended to supply the vehicle under a C-hiring arrangement, the usual item of wages is omitted. Rent and rates are assessed at l2s. per week and insuranre at £1 Os. 5d. Interest charges would amount to £2 Is., making the total standing cost per week £5 Is. 5d.
This oil-engined vehicle would be expected to return a fuel consumption of 14 m.p.g., with a resulting fuel cost per mile of 3.29d. Lubricants will be reckoned at 0.27d. and tyres at 2.11d. Because of the additional semi-trailer, some increase in both maintenance and ,depreciation costs must be expected. although the combined mileage of the two semi-trailers would equate to that of the tractor unit. It is, therefore, assumed that the maintenance cost per mile would be 2.77d. and depreciation 4.32d., making the total running cost I2.76d.
The total cost involved in operating 600 miles per week would be: Standing costs, 15 Is. 5de running costs, £31 17s.; total, £36 19s. 5d. To this has to be added establishment costs and profit margin before a rate can be quoted, Because of the greater security offered by contract work ati increase of 331 per cent, will be assumed to be enough to cover these two items. The resulting weekly charge is thus £49 5s., plus Is. 5d.
per mile for any mileage in excess of 600 per week. S.B.