Our buyer is a plumber who keeps his van for 5 years, and travels about 30,000km each year. Van A is a turbo diesel model with a high level of standard equipment, Van B is an entry level model with a petrol engine. In terms of size, payload and cubic capacity, they’re otherwise similar: In this case Van B is a substantial 25% less expensive to buy than Van A. But over the typical 5 year ownership period, a more economical engine, longer service intervals and better resale actually makes Van A the less expensive one to own overall – and that’s before you take into consideration the fact that the reason Van A was more expensive in the first place was because of its higher level of standard equipment!
|Van A||Van B|
|Amount Financed & Rate||$40,000 @ 5%||$30,000 @ 7%|
|Service Cost & Interval||12 Months/30,000km
@ $349 per service (1 req p/a)
@ $300 per service (3 req p/a)
|Monthly km travelled||2,500||2,500|
|Fuel Consumption||6.2l/100km (Diesel)||11.6l/100km (Premium ULP)|
|5 Year Resale||51% ($20,400)||39% ($11,700)|
|Monthly running Costs|
|Monthly Fuel Cost||$180 (155l @ $1.16p/l)||$354 (290l @ $1.22p/l)|
|Monthly Service Cost||$30 ($349/12)||$75 ($900/12)|
|Depreciation||$326 ($19,600/60)||$305 ($18,300/60)|
|Total||$1,286 per month||$1,334 per month|
Comparisons like this obviously take no account of more subjective qualities like ride comfort, handling, safety, visibility and so on, and all those other ‘fitness for purpose’ and ‘reassurance’ factors we discussed earlier. Or those other hard costs, like tyres, insurance, or repairs. But you get the picture.
There’s a lot more to the cost of your van than just the purchase price!
When you buy your next van, consider what it’s really costing you – you might be surprised.