Vehicle running costs - The AA Rates
LeasePlan South Africa has been producing the AA rate schedules for nearly 2 years and has determined that the layout and format of the tables were becoming outdated. The schedules therefore have been updated and refined to improve their usability.
In order to ensure that the AA rates tables are easy to use, the number of categories has been reduced. Analysis of earlier data revealed that the difference between the various fixed cost categories was not material and no longer warranted the high number of kilometre categories. The reduced number of kilometre categories that will be used from now on will make it easier for users to calculate the AA Rates.
It should be remembered that the AA Rate tables were devised to provide users with a fair and equitable rate against which to assess vehicle performance or alternatively to enable the user to determine or exercise a fair claim for vehicle usage. The AA Rates are not intended to provide a specific or detailed rate for individual specific vehicles.
1. AA RATE SCHEDULES FORMAT
The AA Rate Tables have been designed in a manner that best accommodates most permutations of user needs and all rates are expressed in cents per kilometre.
The AA Rates will be produced in a standard schedule format that comprises only two basic formats:
· Averaged Running Costs – one table each for Petrol Cars, Petrol LCV’s,
Diesel Cars and Diesel LCV’s.
2. EXPLANATION OF TABLES
2.2 AVERAGED RUNNING COSTS TABLE
3.1 FIXED COSTS
3.1.1 INTEREST, DEPRECIATION AND LICENSING
· The 'Purchase Price' is calculated as the price of the vehicle less the value of any built-in maintenance plan, plus the value of any standard accessories less any discounts received.
· The interest rate used to calculate finance charges is the Prime rate prevailing at the time of calculating the tables plus two percentage points.
· In calculating the depreciation, the average residual value percentage covering all models fitting within the specified Purchase Price ranges is applied from the standard LeasePlan tables for the stated kilometres of usage.
· The period used for the interest and depreciation calculation is 60 months.
· Licence fees are determined by using the average national cost of registering and licensing vehicles according to the weight and engine capacity grouping of all vehicles on the market.
% of Purchase Price
It is assumed that:
Vehicles below R150 000
are fitted with a gear-locking device.
3.2 RUNNING COSTS
3.2.1 SERVICING & REPAIRS
This is calculated by using an average of the fuel consumption figures, as published by the manufacturers, per group of vehicles within the specified engine category.
To calculate the fuel cents per km, you should first determine the prevailing cost of fuel in Rands and cents (e.g. R3.61 per litre) applicable to your area.
The fuel cost cents per km calculation is then determined by multiplying the fuel factor by the Rands and cents cost of the fuel.
For example: 8.18 x R3.61 gives a fuel rate of 29.53 cents per km
4. ADJUSTMENT FOR VEHICLE TYPE & EXTRAORDINARY USE
4.1 VEHICLES TYPES
DATA INTEGRITY AND
The database is updated daily with new data from LeasePlan’s managed fleet.
3. REVIEW DATES
The data contained in the AA Rate Schedule will be reviewed regularly to include any changes in economic factors or price variations. The schedule remains valid until a revised schedule is released.