RFT
have produced a table through consultation with our customers,
our own running cost, and from published tables. The
table is a set of variables, and is offered as guidance only.
Where possible you should substitute
your own figures.
The
cost of vehicles varies, with some companies securing better
discounts, than others. The tables use a figure of £18,500
for the cost of a new vehicle. [All figures should be net
of VAT]
We have used the straight line method of depreciation over
a 4 year period. Depending on condition and mileage there
could be a residual value after this period. [lease or contract
hire vehicles can result in a large balloon payment] With
the economy in decline, some companies are extending the
working life of their vehicles beyond 4 years.
The way companies calculate and proportion their overheads
vary with the size of the company and fleet. Companies with
mixed fleets [ 3.5t up to 44t] will disseminate overheads
as a cost per ton. Where as companies with one vehicle,
or a fleet with vehicles of a similar payload will average
the overheads equally over all their vehicles.
Costs
Whichever way you decide to apportion
the costs of your overheads to your vehicles, it is worth
pointing out that you must start with your total overheads
for each particular site you operate from, these include
property costs, management costs, office expenses etc, before
you can allocate overheads per vehicle. These costs are
reasonably constant, when variations occur, such as increases
in lighting, heating, business rates or an increase in driver
salary, a recalculation should be made.
In addition to overheads you need to calculate your driver
costs. To the driver’s gross salary add NI, and pension
contributions, as well as holiday pay, and the cost of cover
drivers.
Add to these the cost of vehicle insurance, goods in transit
insurance, and vehicle road fund licence.
Depreciation should be included at the rate of 25% of purchase
price.
And finally your interest on capital deployed. A sample
5% has been used for these tables.
The above figures when calculated, will give you the cost
of each vehicle per year before it turns a wheel. This can
be reduced to a daily figure by dividing by the number of
days the vehicle is liable to be used in a year, or a mileage
figure by simply dividing the figures by the mileage. We
have taken 240 days [5 days a week for 48 weeks] your figure
will be different. This is referred to as the base costs,
fixed costs, or time related costs.
Mileage cost
The average mpg varies. For this reason
we have used an average of 27 mpg, and a net cost of 85p
per litre for diesel [£3.86 per gallon net of VAT]
therefore the cost per mile would be 14.3 p.p.m.
A set of 4 Michelin van tyres will cost about £640,
with an estimated life of 45,000 miles, the cost per mile
of tyres would be £640 ÷ 45000 miles = 1.4p
per mile.
Service and repairs will obviously be cheaper in the early
years, for this reason we have used an average figure of
£2000 per year, which is the equivalent of 4.4p per
mile.
Base
Costs
| |
£ |
Total Base
Cost |
Driver
costs |
18,720 |
|
Depreciation |
4,625 |
£29,087 |
Road
Fund Licence |
210 |
|
Vehicle
Insurance |
1,600 |
|
Goods
in transit Insurance |
320 |
|
Interest
on capital |
412 |
|
Overheads
per vehicle |
3,200 |
|
Total
Base cost p.a. |
29,087 |
|
Daily
base cost |
121 |
|
Mileage
Costs |
P.P.M. |
|
Fuel |
17.43 |
|
Service
& repairs |
4.4 |
|
Tyres |
1.4 |
|
Total
Mileage costs per mile |
22.23 |
Mileage
cost 45,000m £10,003 |
Total
cost per year £39,090
This
is the cost of a vehicle travelling one way loaded, and returning
empty.
To realistically compare these costs with that of RFT Express,
because RFT only charge per loaded mile, you would have to
combine your outward bound journey and your return journey,
to arrive at the price per loaded mile.
The discounted rate of £1.20 per loaded mile charged
by RFT for a dedicated vehicle capable of carrying 3 pallets,
would in a year cost [£1.20 x 22500 miles] £27,000.
Saving your company £12,090 per
vehicle per year
you could increase your savings, by using the Yorkshire
Courier, Telephone the directory on 0845 136 1363
It is expected that during the downturn
in the economy, the number of days worked delivering your
goods could decline. The cost of your vehicle depreciation
will not alter, and possibly your driver costs will not alter,
unless alternative profit producing work can be found for
your driver.
Your vehicle road tax, insurance and goods in transit insurance
as well as your other vehicle overheads will stay reasonably
constant.
These factors will increase your cost per mile as your mileage
decreases.
2009
Cost Comparison
Article
by Vic Farron : staff writer for RFT Express
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