Cost of fuel Vs depreciation - there is only one winner

Commercial Motor
March 14, 2011

Laurie Dealer was intrigued by a story from CFC Solutions that fuel is set to overtake depreciation and become highest cost of running a car in less than five years.

Filling up with fuel

Well, my car driving friends, welcome to the party. Truck operators will have long had fuel as the primary cost for a haulier far outstripping depreciation (unless they go to loan sharks then it's a different story altogether).

Take a brand new truck valued at £80,000. Even if you write off depreciation over five years it Running trucks not cheap, says Laurie Dealerstands at £16,000 a year. If you value the truck at £15,000 after five years depreciation is still £13,000 annually. And that's using a simple straight-line depreciation scale. Fuel on the other hand is more than treble the cost. If that same truck covers 100,000km a year at 10.0mpg the fuel bill (including VAT) still comes out at £36,730.

If car owners start to realise what it must be like for operators delivering vital, life-saving goods to Great Britain's factories, shops and homes perhaps they will rise up, join the FairfuelUK campaign, and help get the price back down to a manageable cost where we, as a nation, can start to compete on a level playing field.

This country was built on solid ideals, on a sense of freedom and fairness, on the understanding that the tax paying public should not be held accountable for the ineptitude of politicians and brutality of the banks.

If we are to help ourselves the general public must support the haulage industry. It needs everyone on board.

Signed

Laurie Dealer puts his name to rant

Laurie Dealer

PS - don't even get Laurie Dealer started on rail being the answer to moving freight

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Commercial Motor

Commercialmotor.com is the online presence for Commercial Motor magazine, the world’s oldest magazine dedicated to the commercial vehicle industry.

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