Parking fines can be a costly inconvenience, and unfortunately, they’re all too common for drivers. In 2022, over 6.5 million parking tickets were issued in the UK, highlighting the widespread nature of the problem.

A significant portion of these fines stemmed from misunderstandings about parking regulations.

Whether you’re in a rush or unfamiliar with an area, it’s easy to fall foul of parking restrictions. Here’s a guide to help you park responsibly and avoid unnecessary fines. 

Plan ahead 

Before heading to a new area, research the parking regulations. Consider whether using public transportation or a taxi instead of driving is more practical. Sometimes, paying for parking or avoiding parking altogether might be the most convenient option. 

Don’t rush 

Being in a hurry often leads to mistakes. If you’re pressed for time, you might overlook important parking signs or regulations. Give yourself ample time to find a suitable parking space and read all relevant signs carefully. This will help you avoid making hasty decisions that could result in fines. 

Verify parking information 

Avoid relying on verbal assurances from others about parking rules. For example, a friend might tell you it’s okay to park on a particular street on weekends, but you risk getting fined unless you verify this with proper signage. Always check for yourself to ensure you comply with the local parking regulations. 

Park within the lines 

When parking in a marked bay, ensure that both sets of your wheels are entirely within the lines. If your vehicle is large and you’re worried it might not fit, purchasing two tickets and using both bays is wise. This way, you will avoid a ticket for being incorrectly parked. Always ensure your vehicle is aligned correctly and not encroaching on adjacent spaces. 

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Read and follow signs 

Parking regulations can be confusing, especially in an unfamiliar area. Make it a habit to read any signs or notices at the parking location carefully. These will inform you of any restrictions or rules, including special conditions like time limits or required parking permits. 

Pay attention to restrictions 

Be aware that parking restrictions vary by location. An unrestricted spot in one area, may be heavily regulated in another. For instance, Bank Holiday parking rules differ from place to place—just because your local council offers free parking on holidays doesn’t mean others do. Always look for signs to confirm the rules. 

Ensure your ticket is valid 

If you’re using a pay-and-display system, make sure your ticket is clearly visible and correctly printed. Double-check that you have entered your vehicle registration correctly into the machine—mistaking a zero for an ‘O’ can lead to fines. Place the ticket in a prominent spot on your dashboard, and ensure it remains visible after closing your car door. 

Use technology to your advantage 

Many modern parking meters and apps allow you to pay for parking using a credit or debit card. Some also let you extend your parking time remotely if you are running late. Utilise these tools to stay updated on your parking status and avoid overstay fines. 

Parking fines can be a real hassle, but with a little foresight and attention to detail, you can avoid them altogether. By staying informed and using available tools to your advantage, you not only save money but also contribute to a more orderly and stress-free parking experience. Adopt these strategies to keep your parking habits in check and enjoy a smoother, more relaxed driving journey. 

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With the cost of living steadily rising, many homeowners are looking for creative ways to generate extra income. One such opportunity is renting out your driveway. 

If you have a parking space or driveway that sits empty most of the day, turning it into a source of passive income is easier than you might think. Here’s how you can get started and make the most from this opportunity.

Why rent out your driveway?

The demand for parking spaces in busy cities and towns across the UK is huge. Many areas suffer from a lack of available (and affordable) parking, leading commuters, tourists and even local residents to search for alternatives. Renting out your driveway can help fill this gap while putting extra money in your pocket.

How much can you earn?

The amount you can earn by renting out your driveway varies based on location, demand and the availability of alternative parking options. In central London, for example, you could earn between £150 and £400 per month. In other cities and suburban areas the earnings might be lower but still substantial enough to make it worth your while.

So how do you get started?

Various apps and online platforms make it easy to list and rent out your driveway. These platforms provide a user-friendly interface, allowing you to manage bookings and payments efficiently. 

In this article I will focus on JustPark, one of the most popular and widely used parking platforms. But there are several others – listed later – that are well worth checking out too. 

How does JustPark work?

Through their website and mobile app, JustPark puts drivers in touch with home-owners and businesses who have parking spaces (and/or EV charging facilities) available near their destination. They say they help over 13 million drivers a year find parking spaces at over 45,000 UK locations.

Listing your space is free and you can set your own price based on how long the driver wishes to stay. JustPark will suggest an appropriate price based on your location and the facilities you are offering, but you aren’t obliged to accept this.

JustPark charges space-owners (or hosts as they call them) a 3% fee on bookings (so if you charge £10 they will take 30p, meaning you receive £9.70). They also make money from drivers, adding up to 25% of the host’s asking price to the fee charged. They say, however, that charges to drivers are still typically 30% lower than ad hoc street parking (if you can find it), which makes the service attractive to drivers too.

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A big attraction of JustPark is that they handle all the admin on your behalf. All payments are made via the site, and hosts can withdraw earnings via PayPal or direct to their bank account. JustPark also ensures hosts still get paid even if the booker doesn’t turn up.

The money you earn from renting out your parking space is covered by the tax-free trading allowance, so you can make up to £1,000 per year completely free of  tax (and no need to declare it to the taxman). According to the JustPark website, hosts have made a total of over £50 million since the platform first started. Their top hosts earn over £4,000 a year. 

All drivers using the service have to register, so you know exactly who will be using your space on any given day. There is also a rating system so you can see any comments other users of the service have made about them. Hosts are also rated by drivers, incidentally.

You can offer spaces by the day, week or month, and set any restrictions you wish on when your space is available. Anyone is welcome to advertise spaces on JustPark, but the locations in most demand are those near airports, stations and stadiums, and in major cities. 

Other options

As mentioned, JustPark isn’t the only platform offering this service. Here are a few others to check out:

Parklet – Similar to JustPark, Parklet allows homeowners to rent out their parking spaces. It offers flexible payment options, including monthly rentals, which can attract long-term renters.

Your Parking Space – YourParkingSpace caters to both short-term and long-term parking needs, making it ideal for different types of renters. The platform handles all the logistics, including payment processing.

Kerb – Kerb is a parking app that allows homeowners to rent out their driveway to commuters, event-goers, and more. It has a global reach, making it useful for those living near airports or other major transport hubs.

Top tips

To maximize your earnings and attract more renters, consider the following tips:

• Create clear and detailed listings – include high-quality photos and precise descriptions of your space.
• Offer competitive pricing – research similar listings in your area to set a competitive rate.
• Maximize availability – the more available your parking space, the higher your chances of securing renters.
• Communicate well – respond promptly and courteously to booking requests and enquiries.
• Prioritize safety and security – ensure your driveway is well maintained and well lit at night. 
• Avoid confusion or misunderstandings – provide clear instructions for renters.
• Offer EV charging facilities – with EVs growing in popularity, this can be a great selling point for your space. And of course, you can charge more too.

Closing thoughts

I hope this article has opened your eyes to the money-making potential of renting out your driveway. 

Obviously in recent years the pandemic and working from home reduced demand for parking. But with life returning to normal now, demand for parking spaces is steadily increasing again. If you are lucky enough to have a driveway or other parking space you could rent out, why not start making money from it today?

• Of course, if you don’t have a suitable space to offer, you won’t be able to benefit from this opportunity. You could still use JustPark and similar platforms to save money on your own parking costs, though. Either way, these services are well worth checking out.

As always, if you have any comments to share about this article, please do leave them below.Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

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Q I’ve just bought a brand new car and the dealer asked if I also wanted an extended warranty. Should I get one? 

A When you’re changing cars – whether you’re going for a new or used model – a warranty offers peace of mind, which is hard to put a price on.

However, when it comes to paying for an extended warranty, there are a few things to consider before deciding whether it’s worth making the investment. 

For most people you don’t need an extended warranty if you have a valid manufacturer’s warranty. It’s widely known that all new cars sold in the UK come with a manufacturer warranty, provided by the company that built your car.

This provides protection against having to pay for the cost of repairing or replacing faulty components for a certain number of years, and/or a certain number of miles. 

The industry standard manufacturer’s warranty lasts for three years or 60,000 miles, but some car makers offer longer guarantees – Kia, for example, offers up to seven years or 100,000 miles. 

If you’re not planning on keeping your car beyond its manufacturer warranty, then an extended warranty probably isn’t for you. But if you want to keep your car for longer, or you’re buying a used car, an extended warranty could still be on the cards. 

There are three main types of extended car warranty, a manufacturer’s extended warranty, a dealer warranty and a third-party warranty. 

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Manufacturer’s extended warranty 

A manufacturer’s extended warranty covers the cost of repair or replacement after the standard warranty has expired. You can purchase this in addition to the original warranty when you buy a new car, or before the original warranty runs out. 

This is a good option if you’re buying a new car and want to keep it on the road for longer than the manufacturer warranty covers you for, as you might feel the pinch if you have to pay for labour and parts yourself when the time comes. 

If you’re buying a second-hand car that’s relatively new, it may come with the remainder of the manufacturer’s standard warranty and again, it will be up to you whether you want to extend it.

However, some manufacturer warranties can’t be passed on to new owners, so if you are buying a car that on the surface still has some of its manufacturer warranty left, you need to check if it’s still valid for you as a second or third owner. 

Some manufacturer warranties are now service linked, such as Toyota, Lexus and Suzuki. This means you get the bog standard three years or 60,000 miles as standard, but after that you unlock a further year every time you take it in for service.  

Dealer warranty  

If you’re buying a second-hand car that’s out of its manufacturer warranty period, the dealer might offer their own warranty with the vehicle, while some ‘approved used’ models from well-known dealers come with their own guaranteed warranties. If neither of these options are available, they might sell you a used car warranty. 

Older cars tend to have shorter warranties (rarely less than three months), but if you buy an approved used vehicle from a franchised dealer, you can expect up to two years’ protection. 

Don’t forget that even if a dealer only offers a three-month warranty, the Consumer Rights Act tends to provide six months of legal protection against defects. If a dealer offers to sell you less than a six-month warranty, you may not consider it worthwhile given the protection automatically provided to you by law. 

Used-car warranty protections are much less clear-cut than their manufacturer warranty counterparts and it is important to read the terms and conditions before buying, to avoid any surprise exclusions should you ever need to make a claim.

They rarely cover ‘wear and tear’ items such as clutches, windscreen-wiper blades and tyres, nor do they typically cover faults that were present when you bought the car. 

If a warranty isn’t included with the car you’re buying, the price you’ll pay for one on top depends on the age and mileage of the car, the model of car, and the level of cover provided. 

Third party warranty  

The final option is a warranty operated by a warranty company, completely independent of the dealer. It is a rough rule of thumb that the more you pay for a third-party warranty, the more comprehensive it will be. However, a third-party firm might not provide cover for cars over a certain age or mileage.  

Iain is Head of Editorial at Carwow, the online car-changing marketplace. Ian has been an automotive journalist for almost 20 years, working for the likes of What Car? Auto Express and CarBuyer. He’s also helped produce content for Toyota and Lexus. Prior to this he worked in various motor sport websites and had a stint at Cosmopolitan magazine, too.  

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Q Is now the right time to buy an electric car, or should I wait for prices to come down? 

A When you’re buying an electric car (EV), it’s important to consider both the upfront cost and the running cost or cost of ownership. 

Our data shows that the upfront cost is already coming down. People buying new EVs on our site were paying on average just over £3,000 more for their vehicles six months ago than they are now.  

But it has been widely reported that heavy discounting is likely to remain, as car manufacturers face increasing pressure to hit ambitious EV sales targets set by the government. And we expect an influx of EVs from Chinese brands, which will be priced very competitively. 

Generally speaking, electric cars cost less to run than petrol or diesel alternatives if you can charge one at home (don’t forget to explore grants towards the installation of your chargepoint) – especially if you get an EV specific tariff and are clever about it, such as by charging overnight.  

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Savings on fuel can add up to a huge amount over the lifetime of your car – and you’re likely to spend less on maintenance, as EVs have far fewer moving parts than petrol and diesel vehicles, so put simply, there’s less to look after. 

There are also incentives in place for the time being to encourage EV adoption. But exemption from road tax (and the £310-a-year Expensive Car Supplement for cars listed at more than £40,000) is something that’s being discontinued from April 2025. However, realistically incentives won’t be sustainable at scale as more and more people switch to electric; they’re about encouraging early adopters. 

Suffice to say that the market is in flux. There is no crystal ball we can use to say for certain exactly what will happen to the cost of an EV – both upfront and in-life. But there are attractive incentives to take advantage of now, from discounts on the list price to in-life benefits like road tax exemption and grants towards charging facilities. 

Our advice is that if an EV appeals to you – whether you’re motivated by doing right by the planet, or you’re interested in the latest tech – there are plenty of compelling reasons to go for it. But if you’re not sure, there’s no harm in hanging on. Ultimately we’ll all be driving one – it’s just a matter of when individuals make the right move for them. 

John Rawlings is consumer editor at Carwow, the online car-changing marketplace. John has been involved with the car industry for over 25 years, from starting as a journalist at Haymarket Publishing (reviewing cars for their towing ability as Deputy Editor of Practical Caravan) to working in the PR teams at Vauxhall, Volvo and Volkswagen. As Consumer Editor, John is responsible for writing news stories and articles to keep car buyers and owners informed and up to date on everything they need to know about using or choosing a new or used car. 

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Like so much else at the moment, the cost of motoring is rising rapidly. 

As well as high fuel prices, drivers have to contend with ever-increasing road taxes, congestion charges, insurance premiums, tolls, repair and servicing bills, and more. And while these costs keep going up, many of us are also having our incomes squeezed.

Of course, the authorities justify tax and duty rises on the basis that we need to cut pollution and help save the planet. That’s not much consolation, though, when you have to drive to work, get to the doctor’s or hospital, visit elderly relatives, or take the kids to school.

So today I thought I would share some tips and ideas for cutting your motoring costs…

Travel light

The more weight you carry around in your car, the worse the fuel economy is likely to be. So empty your boot as much as possible and remove the roof rack if you’re not using it. The latter will also aid fuel economy by reducing air resistance.

Check your tyres

According to the RAC, tyres under inflated by 15 psi – a difference you may not notice visually – can use 6% more fuel. Not only that, under-inflated tyres wear out faster, meaning you will need to replace them sooner. 

You can check your tyre pressure at most filling stations or buy an electric pump. The correct pressure for your tyres will be in the owner’s manual or handbook.

Drive for fuel economy

There are lots of ways you can improve the fuel economy of your car. One of the best and simplest is to avoid braking and accelerating sharply. That means reading the road, anticipating changes in gradients and traffic conditions, and making any necessary adjustments in good time.

Another top tip is to keep your speed moderate. According to government statistics, driving at a steady 50 mph rather than 70 can improve fuel economy by 25%. For most cars the ‘sweet spot’ for fuel economy is between 50 and 60 mph. Once you get much over this, fuel economy falls rapidly.

Finally, having lots of electrical devices running – from heating to aircon – can reduce fuel economy as well, especially at lower speeds. So try to keep this to a minimum, without of course compromising your comfort or safety.

Consider car sharing

Car sharing can work well if someone else you know is travelling the same route as you, ideally on a regular basis. You can split the fuel costs and (if you both agree) the driving duties. And as fans of Peter Kay’s Car Share will know, you can make new friends and enjoy some stimulating conversations as well!

For one-off journeys, you could try ride-sharing. The website BlaBlaCar lets you search for other drivers who are making a similar journey and have space for you in their car. Alternatively, if you are planning a long journey you can help defray the cost by offering to take one or more paying passengers. Fees are paid in advance via the website, so there is no awkward handing over of cash on the day.

There are also ‘car pool’ companies like ZipCar that offer members the opportunity to hire a car from their fleet when needed for a modest price. If you only require a car now and then, this could be a cost-effective alternative to owning a car yourself. 

Shop around for motor insurance

It’s easy to fall into the habit of renewing every year with the same insurer, but there are big savings to be made by shopping around. 

Use a price comparison service such as Go Compare or Confused.com to get quotes from a range of insurers, therefore. But also check cashback sites such as Top Cashback and Quidco, which have some great offers too. For example, at the time of writing Quidco have an exclusive offer of up to £70 cashback when you buy car insurance from 1st Central Car Insurance.

One other top tip is to get a quote for fully comprehensive insurance, even if you normally opt for third party, fire and theft (TPFT). Surprisingly, because of the way insurance companies’ algorithms work, comprehensive insurance often comes out cheaper, even though you are actually getting better cover.

I hope these tips help you cut your car-related costs in the months ahead. Happy motoring!

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

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Embarking on the journey to car ownership in the UK often involves choosing the right financing option.

While the prospect of having your own set of wheels is thrilling, it’s imperative to understand the hidden costs that might be concealed beneath the surface.

In this guide, we’ll navigate the different car financing choices available in the UK, shedding light on the often-overlooked expenses associated.

Additionally, we’ll delve into a recent scandal that has added another layer of complexity to the world of car finance. 

1) Hire Purchase (HP) 

Hire Purchase is a widespread financing option that allows you to pay a deposit followed by monthly instalments until you own the car outright. However, beneath the seemingly straightforward structure lie hidden costs. 

a. Interest charges 

When opting for Hire Purchase to finance your car, the monthly payments typically consist of the principal amount (the actual cost of the car) and the interest charged by the lender.

The interest is the cost you pay to borrow money to purchase the car. While the monthly payment amount may seem reasonable, it’s crucial to understand the cumulative impact of interest charges over the entire loan term.

The longer the loan term, the more interest you’ll end up paying, significantly influencing the overall cost of the car. 

b. Early repayment fees 

One attractive feature of HP is the option to settle the outstanding balance before the agreed-upon term, allowing you to own the car outright sooner.

However, this seemingly advantageous move may have an unexpected drawback – early repayment fees. Lenders impose these fees to compensate for the interest they would have earned had you continued with the agreed-upon payment schedule. 

2) Personal Contract Purchase (PCP) 

Personal Contract Purchase offers lower monthly payments and a choice at the end – either buy the car or return it. Yet, hidden costs abound in this seemingly flexible option. 

a. Excess mileage charges 

 Personal Contract Purchase (PCP) offers flexibility with lower monthly payments and a choice at the end of the agreement. However, an essential consideration is the agreed-upon mileage limit set at the beginning of the contract.

This limit is an estimation of the distance you are expected to drive over the term of the contract. Should you exceed this mileage limit, excess mileage charges come into play. 

b. Condition charges 

Returning the car at the end of a PCP agreement is standard practice, but returning it in a condition that meets the predefined standards is essential.

While normal wear and tear are usually accepted, damages beyond that threshold may incur additional condition charges. 

3) Personal Car Leasing 

Leasing provides the freedom to drive a car for a set period, with monthly payments and the option to return the vehicle at the end of the lease. However, as with the other two financing options mentioned earlier, hidden costs still lurk in the details. 

a. Excess mileage charges 

One of the potential drawbacks of personal car leasing is the limitation on the annual mileage allowed within the lease agreement. This predetermined mileage is agreed upon at the beginning of the lease term.

Should you exceed this limit, excess mileage charges come into play. These charges can accumulate and become a significant additional cost. 

b. Early termination fees 

Personal car leasing comes with the advantage of driving a new vehicle without the long-term commitment of ownership. However, terminating the lease before the agreed-upon term can result in early termination fees.

These fees are designed to compensate the leasing company for the financial loss incurred when you end the lease prematurely. 

Regardless of how a car is financed, it undergoes a natural process of depreciation, and its value decreases over time. This depreciation is influenced by factors such as age, mileage, and market demand.

The consideration here lies in the potential misalignment between the car’s resale value and the outstanding loan amount. 

The car finance scandal 

Prior to January 2021, some car finance lenders engaged in ‘discretionary commission arrangements’ with brokers. This allowed brokers to adjust customers’ interest rates, potentially incentivising them to maximise rates for higher commissions. 

In January 2021, the Financial Conduct Authority (FCA) outlawed discretionary commission arrangements, sparking over 10,000 consumer complaints. The FCA is actively investigating historical motor finance commission arrangements to address potential industry exploitation. 

The ongoing investigation focuses on instances where consumers bought cars under a finance scheme before January 28, 2021, with a discretionary commission arrangement between their lender and broker. 

The FCA has yet to determine the extent of potential compensation, urging consumers to remain vigilant and informed about their rights in the aftermath of the scandal. 

While the allure of car ownership in the UK is undeniable, it’s crucial to acknowledge the hidden costs that may accompany different financing options. Understanding the intricacies of each method empowers consumers to make informed decisions, ensuring that the excitement of car ownership remains untarnished by unforeseen financial challenges.

The recent scandal serves as a stark reminder of the importance of scrutiny in the world of car finance, prompting consumers to navigate these complexities with vigilance and awareness. 

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Mouthy Money Your Questions Answered panelist Hugo Griffiths answers a reader’s question on how to decide when the right time is to get a new car.  

Question: We need to buy a new car by September as our family is growing. Should we do it now or wait till the last minute as I’ve heard car prices are going to fall this year?

We have an old car that I’m worried might need expensive repairs in the meantime, leaving us with less cash for the new purchase. 

Answer: The best advice I can give you is to buy a car that meets your needs now and in the foreseeable future, and don’t worry too much about values.  

Timing the sale and purchase of a car to the month could mean you’re setting yourself up for potential disappointment, not least because values of second-hand vehicles have fluctuated so much in the last few years. 

It may seem obvious, but focus on your lifestyle and how you drive when shortlisting different models. Think about what your typical journeys look like: do you commute, and if so how regularly? Are you sharing the car with anyone else? How often do you drive longer distances? How much boot-space or back-seat space do you need for passengers or pets? 

Secondly, take your time to do your research. There are lots of great websites that can help give you in-depth information on how to live with a car, not just how it drives.   

Whether to buy new or used is another question to think about. Given your timeframe and the delays we’ve seen across car manufacturing, you’re unlikely to be able to get a ‘factory order’ new car built to any precise specifications ahead of your family’s expansion. Lengthy lead times are also continuing to affect some ‘stock’ (already built) cars – if they are in high demand.  

My top tip here is to take a flexible approach when choosing your new car. Shortlist a handful of models that you would be happy with before you enquire into their availability, and be sure to ask early on about lead-times. 

Seasonally, we find that the summer holidays tend to be a quieter time for car sales and June falls at the end of second quarter sales targets, so timing your shopping for next month could bring you a better bargain.  

However, showrooms can still be at their busiest on the cusp of a plate change and new-car sales figures still peak in March and September every year, so this could be another reason to avoid changing your car at the last moment. 

If you choose a new car, it will come with the reassurance of a manufacturer warranty, but if it’s a second-hand model you’re going for, condition and history are key. Be sure to see it in-person so you can inspect every panel of bodywork, press every button and flick every switch and, of course, scrutinise service records before signing anything. 

Buying privately from an individual will be cheaper that buying an equivalent car from a second-hand car dealer, but this route carries more risk, and should be taken either with a fair deal of knowledge of what to look for, or a friend who has such knowledge.   

Wherever you shop for your car, though, buy the seller as much as the car: if you don’t like the vendor’s vibes – they could seem too keen, or uninterested, or you could just get a ‘bad feeling’ from them – trust your instincts and shop elsewhere. 

Hugo Griffiths is the consumer editor at Carwow.co.uk.

A qualified English teacher, Hugo made the switch to automotive journalism in 2016. He then spent four years writing for the UK’s biggest-selling weekly motoring magazine prior to joining Carwow in 2021 as its consumer editor, writing consumer-interest features and articles.

A car enthusiast for as long as he can remember, Hugo’s stories have made the front page of national newspapers and seen him interviewed on radio and TV. 

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Many experts agree that electric vehicles – or EVs – represent the future for motoring. 

They produce fewer emissions than petrol or diesel cars, so in that respect, at least, they are better for the environment. They can also be cheaper to run, although the rising cost of electricity means this advantage has become a bit less clear cut.

The government has also given EVs a big boost by banning the sale of new petrol and diesel cars from 2030. While you will still be able to drive such cars after that date, getting fuel and spare parts/maintenance for them is likely to become increasingly challenging.

Many drivers (me included) are currently pondering whether to make the switch to electric – and growing numbers, of course, have already done so. So in this article I thought I’d address the question of whether you really can save money with an EV.

But first, let’s answer the most basic question…

What are the main types of EV?

Electric vehicle technology is developing all the time, but broadly speaking there are five main types.

1. Battery Electric Vehicle (BEV)

These vehicles run entirely on electricity and therefore do not produce any tailpipe emissions. You can charge them at home, which tends to be most economical, or via an external charging point.

The most obvious drawback with BEVs is that they have a limited range on a single charge, typically 100-300 miles. Examples include the Nissan Leaf, Vauxhall Corsa-e, Renault Zoe and Tesla Model 3.

2. Plug-In Hybrid Vehicle (PHEV)

These cars have a battery, electric motor and internal combustion engine (ICE). They can be driven using the ICE, electric motor, or both, and can be recharged from an external power source.

A PHEV will typically start in electric mode and run until the battery is empty. Once that happens, the petrol or diesel engine kicks in, meaning there is no battery range limitation. Typical PHEVs have a range of 30-50 miles on batteries alone.

These cars are typically more expensive than BEVs – and cost more to run – but they do give you the safety net of being able to switch to petrol/diesel on longer journeys. 

PHEVs are really a stepping stone to full electric vehicles. They may escape the 2030 ban on petrol/diesel cars, but the sale of new vehicles will likely be banned from 2035.

Examples include the Mitsubishi Outlander PHEV, BMW 330e and VW Golf GTE.

3. Self-Charging Hybrid

Self-charging hybrids are sometimes referred to simply as Hybrid Electric Vehicles or HEVs for short. 

Unlike PHEVs, you don’t plug in self-charging hybrids to recharge them. HEVs combine a battery with a conventional internal combustion engine. The battery recharges as you drive, taking power from the engine and regenerative braking. 

HEVs are efficient in towns and cities and are typically cheaper than BEVs and PHEVs. On the downside, they are less efficient for longer journeys and have a severely limited electric range. The sale of HEVs is likely to be banned in the UK from 2030. 

The best known HEV is the Toyota Prius (now also available as a PHEV) and the Hyundai Ioniq Hybrid.

4. Mild Hybrid Electric Vehicle (MHEV)

MHEVs aren’t really hybrid electric vehicles in the usual sense. They have a small battery and electric motor/generator which supplements the main engine, but they cannot function on electrical power alone.

Fuel economy is improved (in stop-start urban driving especially) and there is a small reduction in CO2 emissions. In addition some MHEV models incorporate technology that allows the engine to switch off while coasting. Because MHEVs can’t run solely on electric power, however, like petrol and diesel cars they are set to be banned from 2030.

Examples include the Suzuki Swift, Ford Puma and Audi Q8

5. Fuel Cell Electric Vehicle (FCEV)

This type of vehicle is powered by hydrogen. Mixing hydrogen with oxygen produces electricity, which powers the vehicle.

FCEVs have some big advantages compared with other types of EV. They take no longer to refuel than a conventional car and only emit water vapour (steam). Only a few manufacturers have invested in this technology, however, so the choice is extremely limited.

The only hydrogen fuel cell car available in the UK at present is the Toyota Mirai. This has an impressive range of up to 400 miles, but is expensive even by EV standards. In addition, according to the RAC there are currently only around 20 hydrogen filling stations in the UK.

EV Pros and Cons

Electric vehicles have some clear advantages over conventional ones, but also some drawbacks. I’ll start with the positives.

Pros

• EVs produce fewer harmful emissions than petrol/diesel cars. If this is important to you, it may be a big incentive to switch. However, EVs aren’t all good news for the environment: emissions created when producing them are higher than for conventional vehicles, and used EV batteries are difficult to recycle.

• You can also save on running costs. The Energy Saving Trust states that a full charge in a pure electric vehicle will give a typical range of over 200 miles and costs approximately £8-12 if charging at home. By contrast, driving 200 miles in a petrol/diesel car will cost around £26-32 in fuel. Cost savings will be most significant when owners charge at home and have access to an off-peak overnight electricity tariff (e.g. OctopusGo).

• Electric vehicles – especially BEVs – have fewer mechanical parts than petrol/diesel cars. That means they typically have lower servicing and maintenance costs.

• You will pay less or no vehicle excise duty (VED). Currently, most EVs are exempt, but that will change from 2025. The first-year rate will still be lower for EVs, but after that all vehicles will be charged at the same standard rate, currently £165 per year.

• As an EV owner you will also pay lower (or be exempt from) congestion charges, clean air zone fees, charges for entering London’s Ultra Low Emission Zone (ULEZ), and so on.

Cons

• Electric cars are expensive. The average price of a new EV in Britain is around £50,000. Even the cheapest models such as the Nissan Leaf 39 kWh will set you back around £29,000. You can of course lease an EV or buy one on HP or PCP (as I discussed on Mouthy Money a few months ago), but this is still not a cheap option.

• You might be able to save a bit by buying second hand. The second-hand market for EVs is in its infancy, however, and vehicles sold this way are still not particularly cheap. 

• As already mentioned, range can be a major concern with EVs. If you mainly drive short distances this may not matter to you, but if you regularly have to travel further afield it might.

• There are still nowhere near enough EV charging points on Britain’s road network (the same largely applies overseas). They can be expensive to use and there are also many reports of them breaking down. According to one recent survey, Londonderry in Northern Ireland has the highest number of broken EV charging points in the UK, with a staggering 30% not working.

• Charging an EV is more time-consuming than filling up an ordinary car. The technology is slowly improving, but even so you can still expect to spend 30-40 minutes minimum at a standard charging point.

• If you don’t have a garage or at least a front drive, charging at home (normally the cheapest and easiest option) may be difficult or even impossible. This applies especially if you live in a flat or apartment without any nearby parking.

Closing thoughts

Electric vehicles clearly have their attractions and eventually we’re all likely to have to adopt them (or stop driving). They do have their drawbacks, however, and as things stand currently may be more suitable for some drivers than others.

While running costs can be lower (though probably not by as big a margin as you would imagine) the up-front cost of buying an EV is likely to be significantly greater. 

In coming years the price of EVs compared with petrol/diesel cars is likely to fall somewhat. So if you don’t desperately need new wheels now, there is certainly a case for waiting a year or two.

The above applies especially if you often drive longer distances. Apart from the worry of finding a (working) charger, many EVs are less efficient than conventional vehicles on long journeys.

In closing, I hope this article has given you food for thought if you are considering ‘going electric’. As you can see, there is no clear-cut answer to the question whether you will save money this way.

It’s therefore essential to weigh up carefully the pros and cons as far as your driving habits and personal circumstances are concerned before making the transition.

As always, if you have any comments or questions about this article, please do leave them below.

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo Credits: Unsplash

The post Could you save money by switching to an electric vehicle? appeared first on Mouthy Money.

Like so much else at the moment, the cost of motoring is accelerating rapidly. 

As well as sky-high fuel prices, drivers have to contend with ever-rising road taxes, congestion charges, insurance premiums, repair and servicing bills, and more. And while these costs keep going up, many of us are also having our incomes squeezed.

Of course, the authorities justify tax and duty rises on the basis that we need to cut pollution and help save the planet. That’s not much consolation, though, when you have to drive to work, get to the doctor’s or hospital, visit elderly relatives, or take the kids to school.

So today I thought I would share some tips and ideas for cutting your motoring costs…

1. Travel light

The more weight you carry around in your car, the worse the fuel economy is likely to be. So empty your boot as much as possible and remove the roof rack if you’re not using it. The latter will also aid fuel economy by reducing air resistance.

Find out more: If you’re 18 – 29, we want to hear from you! By taking our quick survey, you’ll be in with a chance of winning a £100 shopping voucher from your choice of Amazon, John Lewis or M&S – plus four £20 vouchers up for grabs too.

2. Check your tyres

Tyres under inflated by 15 psi – a difference you may not notice visually – can use 6% more fuel, according to the RAC. Not only that, but under-inflated tyres also wear out faster, meaning you will need to replace them sooner. 

You can check your tyre pressure at most filling stations or buy an electric pump. The correct pressure for your tyres will be in the owner’s manual or handbook.

3. Drive for fuel economy

There are lots of ways you can improve the fuel economy of your car. One of the best and simplest is to avoid braking and accelerating sharply. That means reading the road, anticipating changes in gradients and traffic conditions, and making any necessary adjustments in good time.

Another top tip is to keep your speed moderate. According to government statistics, driving at a steady 50 mph rather than 70 can improve fuel economy by 25%. For most cars the ‘sweet spot’ for fuel economy is between 50 and 60 mph. Once you get much over this, fuel economy falls rapidly.

Finally, having lots of electrical devices running – from heating to aircon – can reduce fuel economy as well, especially at lower speeds. So try to keep this to a minimum, but without of course compromising your comfort or safety.

4. Consider car sharing

Car sharing can work well if someone else you know is travelling the same route as you, ideally on a regular basis. You can split the fuel costs and (if you both agree) the driving duties. And as fans of Peter Kay’s Car Share will know, you can make new friends and enjoy some stimulating conversations as well!

For one-off journeys, you could try ridesharing. The website BlaBlaCar lets you search for other drivers who are making a similar journey and have space for you in their car. Alternatively, if you are planning a long journey, you can help defray the cost by offering to take one or more paying passengers. Fees are paid in advance via the website, so there is no awkward handing over of cash on the day.

There are also ‘carpool’ companies like ZipCar that offer members the opportunity to hire a car from their fleet when needed for a modest price. If you only require a car now and then, this could be a cost-effective alternative to owning a car yourself.

5. Shop Around for Motor Insurance

It’s easy to fall into the habit of renewing every year with the same insurer, but there are big savings to be made by shopping around. 

Use a price comparison service such as Go Compare or Confused.com to get quotes from a range of insurers, therefore. But also check cashback sites such as Topcashback and Quidco, which have some great offers too. For example, Topcashback currently have an exclusive £100 cashback deal on over-50s car insurance from Saga.

One other top tip is to get a quote for fully comprehensive insurance, even if you normally opt for third party, fire and theft (TPFT). Surprisingly, because of the way insurance companies’ algorithms work, comprehensive insurance often comes out cheaper, even though you are actually getting better cover.

I hope these tips help you cut your car-related costs in the months ahead. Happy motoring!

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo by William Daigneault on Unsplash

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The coronavirus crisis has forced us all to rethink how we get around, especially as we are being encouraged to avoid public transport where possible. As a result, I’ve bought a car, something I never thought would happen as I live in London’s Zone 3, a five-minute walk from the Tube.

In truth though I had been thinking about buying a car for a while, but coronavirus was the catalyst. My girlfriend Ellyn and I have family scattered around the country, and as I no longer qualify for a railcard, the cost of making regular train trips was becoming unaffordable.

Ellyn is also a nurse with funny shift patterns, so while she normally cycles to work, it’s better for me to drive her there and back when it rains or she’s on nights.

Even though I won’t be driving to my Central London office every day, the economics of a car still work out. By the time Ellyn and I had paid for various trains each month, we worked out we could have insured, parked and fuelled a car without much fuss. It’s possible that servicing and other expenses might end up costing more than expected, but that’s what the rainy day fund is for.

How buying the car went

At first we were super keen on a Fiat 500, so we ploughed into looking, starting with Autotrader and then wandering around a nearby (closed) dealership. They had one in the price range we were looking for, around ten years old, under 70,000 miles, for £3,495.

It was a bit higher than our £3,000 budget, but it was nice, even though the mileage was on the high side . So I got on the phone to the dealer and asked if he would take £2,500 for it. In my mind, because of the pandemic, I thought the dealer would be open to some serious negotiation, but this wasn’t the case. I’m not very good at bargaining, but when he said he’d only let it go for £3,250, I felt this was still too high, so declined.

Back on Autotrader I found a private seller with a very well-priced car at £3,200, but my calls went unanswered. When I texted the seller as per Autotrader’s instructions, I got a curt reply saying the seller wasn’t selling until the pandemic was over. Fair enough, but why was the advert still up?

Change of priorities

After some thought we realised that the Fiat 500 wasn’t actually really going to meet our needs. Ellyn’s uncle reminded us that we’d be doing lots of motorway driving, and the Fiat might be a bit cramped on long journeys. Plus the reliability of some Fiats isn’t great, so after a bit of research we settled on a VW Polo.

This change of tack was instantly rewarded with a panoply of options on Autotrader, but it was clear we would need to pay more for it. VW Polo’s have a good reputation and they hold their price to match.

“Believe the words of a used-car salesman at your peril.”

By this point in our search the government had eased some of the strictest aspects of lockdown, so we felt safer travelling to see a car. Strictly speaking the place we found in Richmond, a short train journey away, shouldn’t have been open. But it had a service garage attached and the dealer assured us he was allowed to operate.

We went to look at a fetching ten year old black Polo with just over 60,000 miles on the clock, priced at £3,995. There was a small ding on one of the doors, which emboldened me to ask for a lower price. I started by saying our budget was £3,500, which we had increased because Polos are pricier.

The dealer said flatly he wasn’t interested in bargaining, which surprised me. He then explained why: “There’s no need for us to lower prices or bargain with customers. Our phones have been ringing off the hook. Everyone seems to realise that, thanks to coronavirus, they now need a car to get around. If you don’t buy this car, we’ll still shift it by the end of the week.”

I know. I KNOW! Believe the words of a used-car salesman at your peril. I know he was probably spinning me a line so I would buy, but it was a compelling argument. Either way, the price was ok and the car was in great shape, so I sealed the deal and left the garage as a car owner.

Whether this patter from the dealer plays out in real life we’ll have to wait and see. As people return to work, there will be many who don’t want to use public transport. Whether this triggers increased demand and higher prices for cars, time will tell.

Figures during lockdown revealed that both new and used car sales were almost at a standstill. While some are predicting a surge in sales now that dealers are open again, possibly leading to more bargains on the forecourt, others fear the boom will be short-lived. Whatever happens, so far we’re happy with our lockdown car.

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