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Q What is the cost of operating a
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5-tonner fitted with Luton van body when averaging around 600 miles a week and on what basis are the estimates calculated?
AWhere special types of body are fitted to standard chassis to the specification of particular operators there can obviously be a comparatively wide range in initial cost, with a corresponding reflection on interest charges and depreciation costs which again would affect the total operating costs. Assuming in this instance that the initial cost of the complete vehicle was £2,355 it is estimated that the total operating cost per mile at 600 miles a week would be 20.83d. This cost per mile is derived as follows: When fitted with the Luton van body the unladen weight is reckoned at 3 tons 14 cwt. so incurring an annual licence duty of £83 -5s. The corresponding licence cost per week, based on 48 working weeks a year, is therefore 35s. 6d.
For a variety of reasons the actual amount of wages paid to a driver can vary substantially and in making this estimate no attempt is made arbitrarily to assume a proportional amount of overtime relative to mileage run or for any other reason. What is done is to include a figure of £13 7s. in the estimate as representing the basic pay to which individual operators will add any extra amount appropriate to the particular work being undertaken.
Rent and rates in respect of garaging the vehicle are estimated to cost the equivalent of 28s. a week while vehicle insurance adds 50s. a week. Interest charged at 71 per cent on the capital outlay of £2,355 amounts to £3 13s. 6d., so giving a total of £22 14s. for the five items of standing cost.
Dealing now with the corresponding five items of running cost it is assumed that the rate of fuel consumption amounts to 16 m.p.g. With diesel purchased at 4s. 114d. a gallon, the resulting fuel cost per mile is 3.73d. Lubricants are reckoned at 0.28d. and tyres at 1.31d. a mile assuming a mileage life of 30,000. Maintenance adds 3.3d. and depreciation 3.13d. so giving a total running cost per mile of 11,75d. The division of the total standing costs by 600, with the resulting amount added to the running cost, gives the total operating cost per mile already stated, namely 20.83d. Alternatively, the total operating cost per week, that is this latter figure multiplied by 600, amounts to £52 2s.