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Go North East: 2015/16 Financial Year Order Predictions

Go North East: 2015/16 Financial Year Order Predictions

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RE: Go North East: 2015/16 Financial Year Order Predictions
(18 Oct 2015, 4:12 pm)S813 FVK wrote Rather than replacing the 1999 ones, why cant they just sell them straight on? High book value = more money for them. Especially as a lot of them seem to be getting sold to ensign rather than alpha for scrap...

I think you've misunderstood what I have previously referred to as "book value".

My understanding is that bus operators have to submit something called a capital expenditure to Go-Ahead, when they wish to spend a large amount of money (ie on new or second-hand vehicles). This is essentially a loan, and bus operators will plan to pay the money back to Go-Ahead over x amount of years, with the asset depreciating in book value over that period of time. Once an asset has fully depreciated, it can then be sold on. Its sale value can be increased in a number of ways; for example, if the vehicle's bodywork is in good condition.

As the Fab57 dual-door Volvo B10BLEs are younger, these will have a higher book value than the T-reg examples, and as such, it is unlikely that these will be disposed of first.

RE: Go North East: 2015/16 Financial Year Order Predictions