What does your van actually cost per hour?

[Best]

I bet few tradespeople really know the true cost per actual working HOUR of their van.
By cost, I mean depreciation, road tax, insurance, servicing & parts, fuel etc.
If you assume the actual working year is perhaps less than 45 weeks (hopefully!) or whatever.

 

[Ermintrude]

It's about. £4.70 for nv200 doing 1.5k a month

 

[lame plumber]

to buy, £2500 per yr + insurance £400 + fuel (£30 X £45) + servicing £350 are approx annual costs to pop in yr fixed costs on the budget form. Doing it hourly is a bit pointless imho, depretiation is only needed on a balance sheet or to take into account when planning a new purchase

 

[Best]

It's about. £4.70 for nv200 doing 1.5k a month

Impressed you know that!
A roofer told me his van, - a new Transit sized van, think a Vivaro type, was £6 per hour cost to him before he works.
And some people think that £10 per hour is plenty to pay a tradesman. :smile:

 

[Best]

Reason why I like the real cost per hour of a van, is that it shows how little is left out an hourly charge.
Also a handy thing to know that you mention to anyone who thinks your estimate is excessive.

 

[lame plumber]

better to add up all your annual costs ie insurance, training, tool hire/replacement/ new purchases, clothing, ppe, consumables, then qdd on what you want to have as a wage divide the lot by 45 weeks or so then the numer of hours youll actually be working and it wont be 8 a day if you take out travel, lunch interuptions etc etc and you'll soon be upto over £50 an hour

 

[kris]

Breakdown of all, fuel £100 every 2weeks so £2600 yearly, Insurance £500 MOT TAX n Breakdowns /wear n tare, service, £1000 , cost of van divided by 5 years to get a yearly figure so say 8000 div 5 = £1600 for van per year so total everything =£5700 yearly to cover everything to do with van div by 45weeks = £127, div 5= £25 per day div 8 = £3 an hour to cover van costs all year round,

 

[missplumb]

£100 a fortnight Kris, lucky you, i use £120 a week when im local. But i dont pay for it so

 

[mfgs]

Impressed you know that!
A roofer told me his van, - a new Transit sized van, think a Vivaro type, was £6 per hour cost to him before he works.
And some people think that £10 per hour is plenty to pay a tradesman. :smile:

That works out at about 12k a year!!!! That cant be right unless it includes repayments on the intial purchase of the van

 

[Ray Stafford]

That works out at about 12k a year!!!! That cant be right unless it includes repayments on the intial purchase of the van

But it should include repayments - because thats part of the cost. If you leased a van, you would count repayments as expenses, and so you should with purchases. Even if you buy the van outright with cash, the financing cost per month to you is :

Purchase cost minus eventual sale cost, divided by the number of months you owned it. Then you should really add in the additional cost that you have suffered by not having that money available for other things - so the interest that you would have earned on a savings account at the very least.

 

[mfgs]

But it should include repayments - because thats part of the cost. If you leased a van, you would count repayments as expenses, and so you should with purchases. Even if you buy the van outright with cash, the financing cost per month to you is :

Purchase cost minus eventual sale cost, divided by the number of months you owned it. Then you should really add in the additional cost that you have suffered by not having that money available for other things - so the interest that you would have earned on a savings account at the very least.

Yeah I get that, I just thought he meant the keeping it on the road and travelling without the cost of the van. Hence why I thought 12k per year was excessive, maybe I misunderstood what he was getting at.

 

[Ray Stafford]

I think he meant that every hour he spent working, the first £6 he earned went to pay van-related costs. But I may have been misreading it.

 

[mfgs]

I think you are right, I think I got it wrong.

 

[Best]

Yes, he meant total costs of his van per hour - i.e. Actual costs of depreciation, repayments, tax, insurance, servicing & parts & fuel bills.
Did seem excessive to me at first, but he lives in a north coastal area & would probably often have at least a 100 mile round trip for, say, Belfast, where there is more work.

 

[kris]

I bought my van out right for £8000 so i diveded that by 5years because if i was to take it on hp then we have to cover not only the running costs but the cost of the vehicle. But my calcs are only fir my circumstances as each persons amounts will be different . Now il have to start saving for a newer one in a few years time.

 

[Phil]

6 years ago I bought a low mileage Combo (22k) for about £3600. I still use this today and do around £20 diesel a week working everyday. Service it myself and MOT seems to come in around £180 a year.

 

[WaterTight]

all i know is if i find myself with the time and energy left over to work it out - let alone catch up with my accounts, my washing or even my sleep - i probably won't be able to afford whatever the hell it costs.