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FROM THE POSTBAG
Page 113
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A solicitor in the north is concerned in an insurance claim involving an accident to a staff car. Use of
The Commercial Motor" Tables of Operating Costs is being made, but it is noted that, whereas depreciation is shown as a running cost in Tables 1-8, it is included as a standing costin Table 9 (cars). He asks for an explanation.
As stated in the introduction to the tables and in conformity with the increasing tendency for frequent replacement of cars provided for business purposes, an exception is made when dealing with the cost of depreciation for this class of vehicle and it is accordingly shown as a standing cost.
Elaborating on this trend, both the type and age of a car used for business purposes can be considered to contribute—or detract—from the image of the company concerned, so that replacement of a car is then by no means solely determined by mechanical condition. This is in contrast with the replacement of a commercial vehicle—particularly in the heavy class—where its condition and usefulness for further work will be the main criterion. Additionally, the actual mileage run by a commercial vehicle (hearing in mind its more regular use than a staff par) normally would provide a good basis for the assessment of its condition at the time of replacement.