Skip Navigation
 

Get To Work Cheaper

Serena Cowdy

By

Serena Cowdy

From the Fool blog

Christmas comes early for Centrica investors

Published in Travel on 2 July 2008

Serena Cowdy has set herself a challenge: to get to work cheaper. Can she manage it?

I live on a pretty tight budget - and in recent weeks I've tried to knock a bit more off my bills.

Travel costs are a big drain as I live in London, and pay around £130 a month to travel to work on public transport. That's around £1,560 a year for the privilege of being squashed, hot and delayed. Great, eh?

So - I decided to investigate alternative means of transport, to see if I could get myself a better deal. Here's what I found...

Driving up costs

As you might expect - buying a car made no financial sense for me. The combined cost of the car itself, insurance, MOT, petrol, parking and so on would be massively higher than £130 a month.

In fact, research has shown that the yearly cost of running a petrol car can easily exceed £3,000. And that's not including the cost of the car itself, or pricey repairs that might be needed. Yikes!

Of course for many people, a car is a vital part of day-to-day life. This is particularly true if it's used to transport several people - or if you live somewhere with poor public transport.

If you do need a car, this article could help you cut your costs, and this one has lots of tips on how to cut your petrol bill.

However for me, the solution clearly lay elsewhere.

Freecycle, free cycle!

At first glance, a bicycle seemed the perfect solution for me. There are lots of reasons why cycling is a financial winner:

•         You can pick up a cheap second-hand bicycle relatively easily, on sites like eBay or Gumtree.

•         If you're really Foolish, you could even get a bike for nothing! Just sign up to your local Freecycle online community and ask if anyone has one they want to get rid of.

•         The Department of Transport now operates a Cycle To Work scheme, which helps you buy a bicycle and accessories tax-free. Depending on how much tax you pay, you could cut up to 43% off the final bill.

•         Cycling every day should keep you really fit - so you could save even more money by cancelling that gym subscription.

•         Certain household contents insurance policies cover bikes (usually up to a certain value) as standard.

And although most home insurers won't pay up if your bicycle is nicked away when away from your home, many will let you add the relevant extra cover for as little as £10 a year.

I know it makes sense. My yearly cycling costs (including the bike itself, helmet, locks and insurance) could work out at £250 or less.

So why haven't I taken the plunge? Basically, I'm scared. In my mind's eye, I see myself wobbling slowly through the mean streets of London, buses clipping my elbows and taxis clipping my heels. Gulp.

Scooter commuter?

Looking for a middle ground, I found a means of two-wheeled transport that really appealed to me.

On a scooter, I told myself, I would at least be motor-aided as I tried to dodge the other traffic. And I'd look terribly chic and stylish as I zipped from A to B.

So, does a scooter make financial sense? Here's what you'd have to fork out for if you chose a small (50cc) model:

The scooter itself: Prices vary dramatically, depending on type, brand, age and a host of other factors.

The cheapest new ones I could find were from Direct Bikes, starting at £499 plus £85 delivery. But be aware, you have to assemble these yourself!

(If, however, you fancy a shiny new Vespa - or a top-of-the-range electric scooter - it could cost you several thousand pounds).

Insurance: Premiums depend, amongst other things, on where you live and where you store your scooter.

I was told that because I live in a ‘high-risk' location (London) and can only use on-street parking, I may have to pay up to £600 a year. Eeek!

Protective equipment: Experts recommend you get the best safety gear that you can afford. A helmet on its own could cost up to £400. And a decent lock could easily set you back £60.

Registration: You'll have to register your scooter with the DVLA, which will cost around £55.

Road tax: This is currently £15 a year.

CBT test: For a 50cc scooter, you don't need to take any further tests if you passed your driving test before 1st February 2001.

If you passed after this date - or if you want a scooter with a bigger engine - you'll need to take a CBT (Compulsory Basic Training) test. This will cost around £55.

Even if you're not legally required to take the test, it's a good idea. Scooters can be extremely dangerous if you're not sure what you're doing!

Petrol: At last, a bit of good news. A 50cc scooter can travel around 100km on just 2.8 litres of petrol. This means if you're only commuting to work and back, your weekly fuel costs should be under £5.

When I added up all the costs, I found that it would cost me over £1,600 to buy and run a small scooter for a year - and that's a conservative estimate.

When I factored in all those times I'd be paying for public transport anyway (for example, if I wanted to drink), I realised that my current travel bills would almost double. Ouch!

Upping the revs

There are lots of travel options I haven't the space to cover. For example, there are more powerful two-wheeled options than scooters.

A motorbike, with its higher top speed and more powerful engine, could be a better option if you want to commute very long distances. However, running one tends to cost more than running a scooter.

I'm afraid I haven't the space to cover the subject here too - and indeed motorbikes deserve a whole article to themselves.

But if you already have one, here are Seven Motorbike Insurance Tips that might help you cut your costs.

On yer bike!

It seems that my dream of scooter commuting will remain just that. The costs really do seem to add up to make it quite a pricey undertaking, despite the lower fuel costs.

For other people, however, buying a scooter could make financial sense. If you don't have good local public transport - and you currently run a car - you could save thousands of pounds a year by switching.

As for me, if I really want to save money, I'll have to grit my teeth and get peddling. So if you'll excuse me, I'm off to practise without my stabilisers...

More: Ditch Your Car And Save £2,042 | Tour de Catford

If travelling on two wheels appeals, why not visit The Fool's Cycling Fools discussion board.

Or if biking is more your cup or tea, there's also a Motorbiking Fools discussion board where you can ask for help and advice on how to get on the road.

Share & subscribe

Comments

The opinions expressed here are those of the individual writers and are not representative of The Motley Fool. If you spot any comments that are unsuitable hit the flag to alert our moderators.

geedoubleu 04 Jul 2008, 10:17am

Cycling is impossible for most and a real drag for everyone else. Unless your journey is less than a couple of miles, you arrive at work hot and sweaty. I commuted 12 miles each way from a London Suburb to the city for 3 months one summer. It was absolutely exhusting, although suprisingly door to door was quicker than the train. But there are so many downsides, its exhusting, time to change in/out of gear, getting wet, slogging against the wind and thats just the summer months, plus your bike needs a complete service every week, parts wear frequently, you have to be organised and have spare parts. Its a nice idea, but reality is a nightmare and costs a lot more than you budget for. Add to that dark winters and extra sets of lights, well you can forget, public transport is by far the best commuting option. If you hate public transport that much, change jobs to something more local.

nman72 04 Jul 2008, 1:16pm

Just to add a more positive experience with cycling than that of geedoubleu: I started cycling to work about a couple of months ago and I'm absolutely loving it!

I arrive at work woken up and refreshed (there are showers in my office) and it's a great way to unwind on the way home. I was quite tired when I first started, but now it's a breeze. I do only have about 6 or 7 miles to go each way though. And as an added bonus, I've shed a fair bit of weight without even trying, and I'm saving about £60 pounds per month.

My main advice would be to get a good quality bike and keep it in good nick, like making sure the tires are fully inflated. This really can make all the difference.

kormachameleon 04 Jul 2008, 1:40pm

I always thought cycling in London would be awful, but my husband bought me a ladies shopper bike recently and I am now a cycling addict. Every journey is interesting and I arrived at my destination both exhillerated and relaxed, which sound like a strange mixture but it's true. In my borough, you can get 2 free cycling lessons, and I've had one so far. It taught me loads, particularly about where to position yourself on the road for maximum safety.

sixhundred 04 Jul 2008, 4:40pm

The key to cycling to work is preparation. Having the right clothes in the right place, planning a decent, safe route and allowing time for showers. Depending on distance a shower is essential and many modern offices have them. In my experience the number of rainy mornings in a year is actually very low. Rainy evenings are more common but you're on the way home anyway. The savings can be immense and don't forget the health benefits. We don't have a cycling culture in the UK but with decent preparation and realistic expectations it's easily doable.

gwiwer 05 Jul 2008, 8:38pm

If you're nervous about cycling to work, have a look at Cycle Training Uk http://www.cycletraining.co.uk/training/individual_training.php

Also, check out the link on that page for subsidised training - if you live, work or study in one of the London boroughs that subsidise training, you might even get 2 hours free training. Could make all the difference to your confidence levels. Otherwise, could it be worth asking your employers if they'd be willing to fund a group booking for some sessions?

For those of us not in London, IAM (yes, that's the Institute of Advanced Motorists) seem to have a bit of a campaign on at the moment - they visited my workplace a couple of months ago and I had quite a nice chat with their cycling bod - they're offering training across the UK, for all levels - from off-road training to complete beginners, to more advanced training. He was very enthusiatic and keen to encourage people to take up a bit of training if it would encourage them to ride more - he felt that there were an awful lot of people who might decide to commute by bike if they had a little bit more confidence in their road skills. Apparently IAM is trying to encourage employers to book subsidised courses for their employees - I'm hoping my company will take them up on it.

JessUK98 06 Jul 2008, 4:38pm

I'm another fan of cycling to work.
As another poster has said - It is all about preparation and what facilities are available at work. I'm lucky in that work provides a bike shelter, a shower and locker.
From my experience;
1) Decide what type of bike you need. Despite popular belief, Mountain bikes (MTB) aren't the best for commuting. A hybrid is a poplular choice - a cross between a MTB and road bike. They are faster than MTB's, robust, can cope well with bad road surfaces and off road cycle paths, have straight handlebars and many have fixings available for mudguards and a rack (if they don't already have them). If you already have a MTB you can change the tyres to "slicks" and you can usually fit some kind of mudguard or rack to a MTB too.
2) Buy the best bike you can afford. I initially went for a £99 Apollo from Halfords. It was total cr*p for my needs - I live in a very hilly area and the components were cheap rubbish. Aim to spend around £300-£400 for something fairly decent. Most retailers tend to have a sale around October time in anticipation for next years stock. I got my hybrid for £160 when it should have been £299.99.
3) Leave a weeks worth of clothes at work. I used to take my clothes to work with me everyday in a rucksack. No need for this. I've since evolved to panniers and leave one pannier in my locker at work with a weeks worth of clothes (take it in Monday morning, and home Friday afternoon).
4) Use showers at work. Added bonus if you are on a water meter at home too:o). Many of you may not be lucky enough to have a shower at work - one thing you can do is take baby wipes / wet wipes into work. I leave baby wipes, deoderant, perfume, hairbrush and other girly things in my locker at work (along with shampoo and a towel for the shower). If I'm short on time or can't be bothered to have a shower I will freshen up with baby wipes. Not as refreshing as a shower, but is good enough. I keep an eye on the BOGOF or half price offers supermarkets usually have on baby wipes. I've found Tesco value wipes aren't all that good.
5) Maintenance - It's not as hard as you think. If you look after your bike then you'll have very few problems. The only things I do once a week is check tyre pressures, check the brakes for wear and check to see if the chain needs cleaning/lubing. The chain doesn't need cleaning/ lubing that often unless it rains or you have a very dirty route. I re-lube my chain after every ride if it is raining. I am all on the road though so often don't lube my chain for a couple of weeks. If you ride through dirt tracks you'll need to clean your chain more often. There are many free maintenance sites to give you handy tips on maintaining and setting up your bike. My favourites are; http://bicycletutor.com/ and http://sheldonbrown.com/home.html
If you don't feel up to basic maintenance just take it to your local bike shop. Carry a basic took kit in a saddle bag in case you get a puncture or need to tighten something enroute etc.

Another thing I do is make my lunch the night before. This saves me time in the morning - I just get up, have a wash, eat my breakfast, chuck my lunch in the pannier and off I go.

When you first start, don't try and do too much at once. Once or twice a week to begin with until you get used to it. If you start round about this time of year when it's fairly warm and stays light for longer, then it should be easier to keep it up. You never know come winter you'll be cycling come rain or shine. I'm a cycling addict now!

alucarDrM 07 Jul 2008, 5:02am

Living only 2 miles from work, I found it cheaper, and perversely quicker(!), to walk rather than either take the bus or car.

runragged2 07 Jul 2008, 7:36am

You would be a fool indeed to buy a scooter from Direct Bikes.
Their terms and conditions would mean that you have no rights and would have to dismantle the machine to send a suspected defective part back to them, at your cost for them to determine if they were going to replace it.
Please read the small print.
Spare parts would be difficult to get, your resale value nil and these would be difficult to insure, being from an unknown brand.
Please do some proper research first before posting links to such businesses.
I would strongly recomment talking to a local dealer if you are looking for a scooter, there are many second hand ones available.
BTW, helmets come in at a lot less that £400.

roderickeaton 07 Jul 2008, 9:20am

Live outside cities. Work outside or on the very edge of a city. Drive in the car in comfort with air conditioning/heating on as required. Listen to your own choice of music or radio programes you like. You can even smoke in your own car.

It's hard to understand why anyone would choose to live in a city with all the inconvenience. I did manage to live outside of London and drive in every day for 10 years but Maggie had done away with Livingstone then and there were no congestion charges. Sadly he was reinvented by Labour along with the dastardly GLC. I was also blessed with my own parking space. Still, I was really glad to be transferred out of London to the countryside where the comfort of the car is king. My advice..if at all possible, live and work out of town and have a life without the discomforts of 'Old Eastern Bloc' style of 'public trnasport' or 'push bike' living.

laislapequena 07 Jul 2008, 9:20am

I cycle occasionaly to work, mainly in the summer months, but with more and more people cycling to work now, how much longer before Gordon and his chums see an opportunity to tax cyclists for using the road etc?

bluepiper61 07 Jul 2008, 9:48am

I don't think it is smart to compare the cost of public transport to running a scooter over one year, as surely a lot of the fixed costs (purchase, safety equipment, registration, training etc) can be spread over 3 - 4 years. That would make the scooter a lot cheaper than the £1600 quoted.

Iniq 07 Jul 2008, 10:18am

It's great to read so many positive, practical and helpful comments about cycling.

A mountain bike - especially one with knobbly tyres but no mudguards and no rear rack on which to carry anything - may be good for wild mountain biking and may be very fashionable, but it is not the ideal bike for urban commuting.

As others have said, keep your tyres blown up hard, make sure your riding position is efficient (particularly saddle height) - seek advice from an experinced cyclist - pedal in a sensible gear ratio and, if you are deterred by traffic, get professional training (often provided through the local authority) from someone like the CTC.

Why waste time and money in a gym if you can keep fit while commuting on a bike?

sunstarrr 07 Jul 2008, 10:25am

it's not an option for everyone as it depends on bus routes and where you're travelling, but if you live relatively centrally in london then getting to bus is a lot cheaper option. while a zone 1-2 monthly travelcard is £93, a monthly zone 1-6 bus pass is £50 (the price even went DOWN recently!). of course journey times depend on the traffic, but i've been pleasantly surprised -- my regular journey to work takes 25 minutes by tube, and generally around 35 mins by bus. £43 a month isn't an awful lot, but it adds up, I get a seat for the entire journey and I get to look at the scenery as I go by too!

tomatosoup 07 Jul 2008, 11:26am

I cycle to work almost every day - I average around 80% of the year. It's only just over 6 miles and takes me about 35 minutes, plus changing time. We have lockers and showers at work, which are handy. I bought my bike using the tax free Bike to Work scheme. the only downside was that I only had the choice of one place to get the bike - Halfords, who were not brilliant.
I have kept a spreadsheet recording all my costs, and after 2 years it has worked out at 8.5p per mile. I do 2000 miles per year. The biggest unexpected expense has been when some tosspot half-inched my saddle - which meant new saddle/seat post and rear light (they didn't steal the light, but I couldn't get a new clip for it - even though the new light had an identical clip!).
I reckon long term the cost will drop to around 7.5p. From experience in the past I don't expect it to drop much further, because major expenses like new chain and sprockets will start to appear after I reach the 6000 mile mark. I find rear tyres last around 3500 miles and front ones 6000.
In my previous job I had occasions when I could use my bike for travelling between offices so I could claim expenses at 20p per mile, which was fun when the weather was good.
Overall, compared to my alternative method of getting to work (one bus journey each way, on a pay-as-you-go Oyster card) I reckon I have saved £264 over the 2 years.

TonyS1968 07 Jul 2008, 1:19pm

My 30 mile each way commute to Cardiff is too far to cycle (tried it once) so for the 8 years I've lived here I use a combination of Bike/Train.
In the winter I ride 4 miles to my local station and spend £175 for a monthly ticket. In Summer I ride 19 miles to Newport and pay £48 for a monthly ticket. No showers at work so when doing the long journey I use fragrance free wet wipes as others have suggested. Obviously doing 190 miles/week does wear tyres/brakes etc. and I needs to eat more but the benefits are more than financial. For comparison, driving would cost about £300 + parking!
For anyone thinking of buying a mountain bike bear in mind that these are the cycling equivalent of an SUV, only in this case the extra energy required to power one along comes from the rider!

GnomeYOB 07 Jul 2008, 2:27pm

I changed from public transport to motorbike a few years back. I don't think the pricing for it is correct in the article and it will vary alot person to person. The CBT would probably be double the £55, the bike is going to cost a lot more for somthing most people would find acceptable too. But I can only assume the author is young or has other reasons to be quoted so much for insurance, my 125 cost just over £100 for the first year. £400 bought me all of my safety cloths, new from a reputable dealer not just my helmet.

Just as my bike has cost me a bit more for when I go out for a drink it has also saved me a bit when I have used it for non-commuting trips.

One of the best things I ever did.

Gnome

harnser 08 Jul 2008, 12:47pm

Something the article doesn't take into account is what value you place on your time. I went through similar calculations a couple of years ago when I decided to buy a motorcycle instead of using the bus. My monthly costs have gone up slightly even before you consider the cost of the protective/waterproof clothing and so on - but I consider that worthwhile given that it has cut my commuting time from 2 hours to 45 minutes a day.

And having passed my test and upgraded to a bigger bike, I can also save on the cost of fuel when I make longer journeys at the weekend (as long as the weather is reasonable and I don't have to carry too much luggage).

By the way if you're thinking of taking up motorcycling, do so quickly because the driving test gets a lot more difficult (and probably more expensive) this autumn.

MartianGirlFool 10 Jul 2008, 6:26pm

I too commuted on a motorbike. 25 miles into central London. Half the time each way compared to public transport - and once over the initial outlay - a third of the cost day-to-day!! You can also recoup some of the cost with the sale of your motorbike if you need too!

Join the conversation

Instructions

Line breaks are converted automatically.

You may use the following tags in your post: <b>bold</b>, <i>quoted text</i>. All other tags will be removed from your post.

Hello stranger

To add your own comment, please login.

Not yet registered? Register now.