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Q Could you comment on the validity of comparing operating costs of similar new and used vehicles?

27th January 1967
Page 67
Page 67, 27th January 1967 — Q Could you comment on the validity of comparing operating costs of similar new and used vehicles?
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Which of the following most accurately describes the problem?

A it is an arbitrary exercise to obtain alter' native operating costs for both new and used vehicles and then compare those results to useful purpose. At the outset, like is not being compared with like since the service provided by a new vehicle would normally be expected to be better than when a used vehicle is employed.

But when limited to the sphere of operating costs, and assuming continuity of operation. a haulier acquiring a used vehicle must step up his allowance for depreciation because of the shorter life of such a vehicle as compared with a new vehicle.

Maintenance costs will almost certainly be higher so that, overall, the total operating costs of a used vehicle may not necessarily be lower than the equivalent total costs of operating a new vehicle. They might indeed be higher.

The initial benefit of lower outlay (i.e. the value of a used vehicle as compared with the price when new) with a resulting lower interest charge. could be the only item which was lower in the case of a used vehicle when viewed over the differing life spans of the two vehicles.

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