Disposal of Arriva vehicles

[iMarkeh]

RE: Arriva St Helens Paint Shop & Repair Centre

(06/07/2020 20:22)SK15 GZG Wrote:  Even after a bus is withdrawn from service it still has some residual book value - and depending on the vehicle's age and condition this will usually far exceed what Arriva would get from selling it to a scrap dealer immediately after the vehicle has been withdrawn. It makes far more sense to let the asset depreciate to a value where the company won't make an unnecessary loss - and anyway - what exactly would their disposal make space for?

Another example: I'm not sure on the exact value of my car but let's say for example it's £10k - if I were to sell it for £5k just so I could get rid of it quickly and buy a different car instead would lose me a lot of money

What's stupid is selling an asset - whatever condition it's in - for far less than it's actually worth

How much value exactly do some of these very old vehicles have? Everyone else seems to get rid of them quite quickly (other Arriva areas and other companies). Arriva NW&W only keep these because they have the space. If the space was more limited, they would get rid of them quicker. The disposal would allow for the land to either be used for other operational purposes or would allow the land to be sold for other purposes. I know it's only a small bit of land per depot but the overall land space works out to be around the size of a mid sized garage.
Would you have land with space for 80 buses and just dump all 'end of life' vehicles there? Bearing in mind land costs money and reducing the amount you are paying out for land means increased profits.

As for your example, I argue that is very different since if you have a vehicle which is in usable condition and you can start it up one day and just go, then the vehicle has some use and you have a reason to keep it. If however you have a vehicle on your driveway which is broken, will never move and you will never get it fixed, what is the point in keeping it. Regardless of it's value, you will get the same money now or in 3 years time. Book value is just virtual figure and as you will never, ever get the book value on some of these vehicles, just give up.

I'm sure there are some bus demolishers who would rather a bus which has some usable parts than a bus which is basically rotting away with nothing they can use.


As I have kept saying, 99% of other companies get rid of the buses because the book value is generally lower or they just get rid to free up space, I don't see why Arriva NW&W are such a special case and can't manage to do things in the same way as the rest of the industry.