In the build up to the hugely important COP26 in Glasgow later this year, the UK government is likely to make a number of announcements to establish its credentials while it is in the international spotlight. The first of these came recently with the “advancing” of the plan to ban sales of new diesel, petrol AND hybrid cars.
There is already a lot of talk about what this might mean specifically for your choice of car, and also for the longer term impact on the climate.
However, have you thought how this might affect your more general financial planning?
We may be used to thinking of these developments in terms of direct impact on us, or maybe how to manage our investments accordingly. But have you also considered the wider implications on your lives, and that of your families?
In our definition of “Financial Wellness” there is not only our ability to cope with current spending, and investing for future needs, but it is also important to be able to “afford to make the choices that allow us to enjoy life”.
For example, it occurs to me that there might be some changes to consider in our lives to prepare for this new ‘electric’ future.
I imagine that houses or buildings with dedicated off-street parking will see a premium since there will be lots of competition for on-street charge points (and no-one around to unplug a car that has finished charging).
With an increased demand for car charging throughout day & night, there will be a benefit to using your own (free) electricity, so personal solar systems will be worth installing again, even without a Feed In Tariff to offset the cost. However, to use these for charging your car you will probably also have to invest in diverters and storage (batteries).
So while we are thinking about saving for a replacement electric car, and trusting that the cost of electric cars will come down, we may also need to take into account the cost of buying and installing the services required to charge them at home!
On the other hand … will we even need to own a car in 15 years? With the speed of technological development, and the imminent launch of self-driving cars (they’re already testing them in the UK), what would be the point of owning a car at all?
This just goes to show how making definite plans for the future is very difficult, so we may need to have some contingency funds to allow us to adapt.
How do you see this ban affecting you and your family?