APPENDIX C 



Vehicle Costs 



Vehicles costs are classified as fixed or variable. The fixed cost items 

 are expressed as annual costs, and the variable cost items are expressed 

 in the form of relationships between cost and miles traveled. 



Fixed Costs 



The fixed cost items include insurance, registration, license, and 

 anti-freeze. Insurance rates were olitained from a secondary source and 

 include charges for comprehensive, collision, and liability types of insur- 

 ance. Two rates are given for each type vehicle since rates are based on 

 the radius of the area of operation. The low rates are for vehicles oper- 

 ating in an area with a radius not exceeding 50 miles, and the high rates 

 are for vehicles operating in an area with a radius not exceeding 150 

 miles. 



Registration and license fees are based on rates established by the 

 State of New Hamjjshire. The registration charge is 60 cents per hundred 

 pounds of registered gross vehicle weight, and the license is $3.00 per 

 vehicle. 



Anti-freeze costs are based on radiator capacity and an assigned cost 

 of $2.00 per gallon for the anti-freeze. Table C-1 summarizes the fixed 

 costs for the five vehicle types. 



Table C-1. Annual Fixed Costs for Five Vehicle Types* 



* Includes chassis and chick van. 

 ** Does not include cargo insurance. 



t For vehicles operatiiig in an area with a radius of to 50 miles. 

 + For vehicles operating in an area with a radius of to 150 miles. 



Variable cost items include gasoline, oil, lubrication, tires and truck 

 chassis and van maintenance and repair, depreciation, interest, and 

 taxes. The costs for gasoline, oil, and lubrication are a function of mile- 

 age while costs for the remaining items are a function of mileage or time. 



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