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
Driver
costs |
18,720 |
Depreciation |
4,625 |
Road Fund Licence |
180 |
Vehicle Insurance |
1,600 |
Goods in transit
Insurance |
320 |
Interest on capital |
412 |
Overheads per
vehicle |
3,200 |
Total
Base cost p.a. |
29,057 |
Daily base cost |
121 |
£
Mileage
Costs |
P.P.M. |
Fuel |
14.3 |
Service &
repairs |
4.4 |
Tyres |
1.4 |
Total
Mileage costs per mile |
20.0 |
Mileage
cost 45,000m £9,000
Total
cost per year £38,057
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 £11,057 per vehicle per year
By using the M1 shuttle, or a contract rate, could increase your
savings.
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.
The RHA has done a more comprehensive
survey, the Goods Vehicle Operating Costs 2009 and
puts the cost of a 3.5t. van, with a 4 year depreciation , doing
45,000 miles a year, at £42,670.
This will of course increase in 2009, with the proposed increase
in fuel duty of 2p a litre, and the re-introduction of the price
escalator.
Article
by Vic Farron : staff writer for RFT Express
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