Lubricants

An important omission from the maintenance costs discussed above will have been noticed, namely the cost of lubricating oils. While these comprise only a small cost item compared with other aspects of the vehicle running costs, they are not totally insignificant.

Lubricants in this context are those used in the engine, gearbox and rear axle. Generally speaking the quantities used are relatively small and only occur at the time of regular oil changes particularly in the case of the two latter components but nevertheless they do form an important item of cost too large to be ignored.

Engine oils, requiring the more frequent changes, will form the largest proportion of lubrication cost. And even more so if the engine is worn and is using or losing exceptional quantities.

Recording lubrication costs is dependent on three things:

1. 1. Identification of the appropriate cost from outside garage invoices where oil changes have occurred.
2. Accurate records of issues from the operator's own bulk stocks.
3. Collection of receipts from drivers for retail purchases of oil when away from base.

Item 2 will provide the greatest difficulty because in most cases bulk tanks are equipped with hand pumps and measuring jugs rather than sophisticated electric pumps and meters. Consequently more than usual dependence is placed on drivers and others to ensure that a record is made of issues to the nearest pint.

Recording lubricant issues Again a simple chart, as shown below, will suffice for record purposes.

Information recorded on this chart can be transferred to individual vehicle cost records and charged at the appropriate price that will have been obtained from the supplier's invoice at the time of delivery. If this is done immediately the invoice is received, before it is filed away, it is a task that only takes a few moments.

Oil filters cost items can be included under the general heading of lubricants if desired. Since oil filters are only ever replaced at the time when the engine oil is changed it is often convenient to include the cost of the filter with the oil.

Lubricants as a maintenance cost One final consideration that can be put forward is that lubrication costs need not be separately recorded at all. Oil changes are part of the servicing schedule, the labour costs of which are recorded in the maintenance costs, so why not record lubricant issues as maintenance material issues?
There is no reason at all why this should not be done. The important point is that, whatever the method, the cost must' be recorded somewhere.

Depreciation as a running cost Depreciation calculation could be made, if preferred, on a mileage basis in which case depreciation would then become a running cost rather than a standing cost.
If this method of dealing with depreciation is chosen the cost calculation would be carried out as follows and the depreciation cost per kilometre added to the remainder of the running costs:
Amount to be depreciated: £4150
Anticipated life: 200,000 miles
Depreciation cost per kilometre: (K830,000.00)/(320,000 kilometres) = K2.59 per kilometre