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6th December 1963
Page 87
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Page 87, 6th December 1963 — Questions Answered
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Which of the following most accurately describes the problem?

COMPARISON of operating .costs at varying mileages is requested by a reader for a 2-ton van, fitted with either petrol or oil engine.

Before dealing with the actual items of cost on which the timate comparison will be made, it must be stated that whilst e cost of operating a commercial vehicle must he of prime ipoi lance to the user, other factors may have to be considered hen deciding between petrol or oil engine vehicle.

When a lieet of vehicles is being operated then standardiza)11, not only as to makes but also types (including the fuel ecl) can bring substantial economies, convenience and tibility in daily working.

Alternatively, when only one or two vehicles are operated a particular user and he therefore finds it more economic contract out his maintenance, then the suitability of such aintenancc at the local garage could be a determining factor choosing between petrolor oil-engined vehicles.

tanding Costs

Dealing first with the petrol-engined 2-ton van, it will he surned that the average initial cost is 1921. With an unladen eight of 2 too 2 cwt. the annual licence duty is 133 and t1-1 a fractional addition for the proportion of the C-licence e, the equivalent cost of .1:cences per week is 13s. 3d. As ith .d; these five items of standing costs, this latter calculation is been made on the basis of a 50-week year to allow for so vieeks when the vehicle may be off the road either for ajor overhaul or driver's annual holidays.

The cost of driver's wages to the employer is reckoned as 0 13s. 11d, This amount is basically dependent on the atutory minimum remunerat:on payable to an adult driver in Grade 1 area as defined in the Road Haulage Wages Regutions R.H. (74), Whilst these regulations apply to Aand 'licence drivers, the wages paid to C-licence drivers tend to

sitnila r, for which reason the statutory rate is used here, a the basic amount payable in respect of a 42-hour week ere has been added appropriate amounts in respect of surance contributions by the employer and an appropriate I:luso-nein to permit driver's holidays with pay.

Rent and rates in respect of garaging the vehicle are timated at 16s. 9d. a week, whilst comprehensive vehicle surance is reckoned to cost 105. 10d. a week, assuming the daicle operates in a medium-risk area. Interest charged at a amnia] rate of five per cent on the initial outlay of 1921 Ids the equivalent of [8s. 5d. a week to the standing costs. These five items thus total 03. 13s.. 2d. For the purpose

this comparison three alternatives of average weekly mileage ive been chosen appropriate to the size of vehicle----namely. 10, 200 and 400 miles, with corresponding standing costs per ile of 32-78d., 16.39d, and 8-20d. respectively.

unning Costs Assuming that this user purchases his petrol in bulk at 4s. Id. id that an average rate of consumption of 16 m.p.g. is normally 'aim:tined, then the fuel cost per mile would amount to 3-06d. ut in the ease of the two lower average weekly mileages of 10 and 200 just mentioned, it would be reasonable to assume

that these figures implied an exceptional amount of stop-andstart work with a worsening cif the fuel consumption on this petrol engine vehicle. To allow for this, 10 per cent will be added to the basic fuel cost when the weekly mileage is reduced to 200 so giving a fuel cost per mile of 3-37d. With 20 per cent added at 100 miles a week the cost of this item is increased to .3'77d.

Lubricants add 0-23d. and tyres 0-70d. a mile. Maintenance. inclusive of washing, servicing and major repairs, is reckoned to cost 293d. a mile at 100 miles a week, decreasing to 2.4Ed. at 200 and 1-94d. at 400 miles a week. This variation is based on the assumption that some parts of the overall maintenance procedure will be undertaken weekly irrespective of the mileage -for example, washing and possible greasing,

In order to obtain the balance to be written off as depreciation, the equivalent cost of the set of tyres is first deducted from the cost price of the vehicle with a further deduetion-10 per cent of the cost price-to allow for the residual value when the vehicle is replaced. This results in a balance of 1741, and assuming a vehicle mileage. life of 100,000, the basic cost of depreciation,will then be I-78d.

But as explained in this series recently, occasions arise when allowance has to be made for obsolescence when the mileage is exceptionally low--for example, 100 or 200 miles per week. Accordingly, a nominal increase of 25 per cent is added at 2110 miles a week, so giving a depreciation cost per mile of 2.23d., with 50 per cent added at 100 miles a week the resulting depreciation cost per mile is then 2-67d.

The total for the five items of running cost is therefore 10-30d. a mile, or £4 5s. 10d. a week at 100 miles a week; 8.99d. a mile, or £7 9s. [(Id. a week at 200 miles a week; or 7.71d. a mile, or £12 17s. Od. per week, at 400 miles a week. The addition of standing and running costs gives the corresponding total operating costs of 43,01W. a mile, or 117 9s. Od. a week at 100 miles a week: 25-31W. a mile. or 121 3s. Od. a week at 200 miles a week: and 15-91d. a mile, or 126 10s. 2d. a week at 400 miles a week.

Oil-engine Version Although the unladen weight of the oil-engine version of this van is slightly higher (2 ton 4 cwt.), it still remains within the same excise duty group so that the cost of licensing remains the same at 13s. 3d. a week. Wages and rent and rates also remain the same at 110 13s. lid, and 16s. 9d, a week respectively. But because of the increase in the initial outlay to £1,031, the items of insurance and interest are increased to 10s. 11 d. and £1 Os. 8d. a week respectively. The total for the five items of standing costs is thus £13 15s. 6t1., compared with 113 13s. 2d. a week for the petrol-engine version, The main saving with the oil-engine van is, of course, in the item of fuel which is now reduced to 2-09d. a mile. Moreover. because the consumption of the oil engine is not adversely affected by stop-and-start work as is the petrol-engine version, this figure for fuel cost is reckoned to apply at all three average weekly mileages.

The cost of lubricants is slightly increased to 0-25d. a mile, whilst tyres remain the same at 0-70d. a mile. At 100, 200, 400 c3 I

miles a week respectively, the cost of maintenance is assessed at 2-74d., 2-10d. and 1.68d. a mile, whilst correspondingly depreciation costs 3-03d., 2.53d. and 2'02d. a mile.

The total operating costs for this 2-ton, oil-engine van is 41-874. a mile, or £17 8s. 11d, a week at 100 miles a week; 24.20d. a mile, or £20 3s. 4d. a week at 200 miles a week; and 15-02d. a mile, or £25 Os. 2id. a week at 400 miles a week.

Comparing the results obtained it will be seen that the costs per week are virtually the same for both petroland oil-engine version when the mileage is 100 miles a week. But at 200 miles a week the difference in favour of the oil-engine van is approximately £1 (L20 3s. 4d. compared with £21 3s. Od.). At 400 miles a week the advantage in favour of the oil-engine version has risen to exactly 30s. (125 Os. 2d. compared w:th £26 10s, 2d.).

Speed Limits for Special Types The speed limits applying to special-type vehicles are the subject of inquiry from another reader.

A vehicle for carrying or drawing an abnormal or indivisible toad is restricted to 20 miles per hour providing it is not carrying a load, has an overall width not exceeding 9 ft. 6 in. or complies with the relevant requirements of Construction and Use Regulations. Where these provisions do not apply, such vehicles are limited to 12 miles per hour. This latter limitation also applies to engineering plant.

A third category includes motor vehicles and trailers carrying toads exceeding 14 ft. in width, when the limitation is 20 miles per hour.

For comparison, as from February 9 this year goods vehicles generally have been permitted to travel up to 40 miles per hour, or 30 miles per hour when drawing a trailer, other than an articulated vehicle When more than one trailer is drawn the maximum speed peimitted is reduced to 20 miles per hour.

P.S.V. Fuel Tank Requirements

Following the announcement in The Commercial Motor of the coming into operation on October 28 of amendments to the P.S.V. (Conditions of Fitness) Regulations, a reader asks for information as to their effect on the fitting of fuel tanks.

As a result of these amendments the requirements of Regulation 17 of the Public Service Vehicles (Conditions of Fitness) Regulations, 1958, are so varied as to prohibit the lilting of a fuel tank within one foot of any entrance or exit on a single-deck vehicle with •a seating capacity of more than 12 passengers to vehicles first registered on or after October 28, 1964.

Confirmation as to the lighting regulations applying to long vehicles and trailers is requested by another reader. These are set out in the Road. Vehicles Lighting (Lc Vehicles and Trailer) Regulations, 1962, which came ii operation •on July 24 this year.

In essence, these regulations require the carriage at ni; by long vehicles and trailers of additional lamps at the sic These are referred to as " front corner marker lamps" a side marker lamps ". The principal provisions are ti vehicles, inclusive of load, exceeding 60 ft. must carry s marker lamps in specified positions. For combinations ol towing vehicle and trailer exceeding 40 ft. but not exceed 60 ft., side marker lamps are still required, but in differ positions, Ten-Year Increases " What have been the main changes the basic wages, p chase tax and excise duty on commercial vehicles over past 10 years ? "is the gist of another inquiry.

Using what is probably the most popular group of vatic as classified under the Road Haulage Regulations-namc 5to 10-ton carrying capacity, the variations have been follows: in 1954, the minimum remuneration for an ad driver in a Grade 1 area was 132s. By 1959 this had risen 175s. whilst the current rate is 200s. 6d.

It should be noted, however, that up till 1957 the categq was 5to 8-tons (and not 10 tons as now) whilst a 44-h( week instead.of the current 42-hour week was operative ui December 31, 1961.

Purchase tax on goods vehicles has varied considerably. originally introduced on May I, 1950, the tax was 33 on completed vehicles, but in July the same year this was p able on chassis only. On April 15, 1953, purchase tax N reduced to 25 per cent, only to be increased to 30 per cent October 27, 1955. It was finally abolished on April 8, 1959 Excluding the temporary levy, changes in excise duty o the same period of 10 years have been limited to the Mere of 20 per cent as from April 18, 1961. Accordingly, and an example, the annual duty payable on a goods vehicle w an unladen weight of 3 tons was raised from £35 to £42.

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