Previously the realm of science fiction, electric and hybrid cars are now an everyday reality. But how exactly do they work? What’s the difference between the two, and which one should you buy? We’ve got your basic breakdown right here.

Electric cars

Just as the name suggests, electric cars are powered by an electric motor (or two). Rather than being powered by petrol or diesel, they use energy stored in rechargeable batteries which are recharged can be charged by household power point, though some manufacturers offer higher-capacity chargers that can be installed in your home or in the case of Tesla, their Superchargers for even faster charge times. Being electric, they don’t produce any tailpipe emissions, reduce our ongoing dependence on oil, and can be cheaper to run. They’re also especially quiet to drive, with substantial performance to boot.

Hybrid cars

Combining a petrol or diesel engine with an electric motor and a battery, hybrid cars are precisely that. More efficient than their conventional counterparts, they require less petrol or diesel to run and subsequently produce less emissions. There are currently 3 different types of hybrids on the market – parallel, range extender and plug-in hybrids. Although they all work slightly differently, they drive much the same as a conventional car. They also come with a range of power modes, enabling drivers to choose either maximum efficiency or performance, depending on the driving conditions.

3 options to consider

Hyundai Ioniq

Arriving in Australia soon, the Hyundai’s Ioniq will have the Toyota Prius firmly in its sights. However, unlike its Japanese competitor, Hyundai is hoping the Ioniq will be available in Australia with regular hybrid, plug-in Hybrid (PHEV) and pure electric versions to appeal to more customers. Hyundai’s eco offering will also come with a dual-clutch gearbox (hybrid models only), promising a sharper drive without the “rubber band” feeling that comes with the CVT transmissions that are typical of the hybrid breed. Pricing is expected to open Around $35,000 for the regular hybrid, rising to almost $50,000 for the pure electric model.

Toyota Prius

The darling of the eco and Hollywood set, the Toyota Prius is now in its fourth generation and maintains its position as the world’s best-selling hybrid vehicle. The value proposition and driving dynamics have been improved over its predecessor and sharp and distinctive styling ensures it won’t go unnoticed. It comes with a suite of technology, a fresh interior design and proven reliability. With lots of mod cons you’d expect like active cruise control, pre-collision safety system and LED headlights, those after an eco-focused driving should have the Prius on their shopping list.

Tesla Model 3

Set to land in Australia in early 2019, the Model 3 will bring Tesla into the most hotly-contested luxury segment – the compact sedan segment currently dominated by BMW’s 3 Series and Mercedes-Benz’s C-Class. Pricing is expected to be comparable to those competitors, starting around the early $50,000 mark, plus on-road costs. However, whilst the pricing is similar, the performance is in another league. Even in the base spec, this sexy looking sedan dispatches the 0-100km/h sprint in only 5.6 seconds, humbling all but focused performance machines.

Think comprehensive car insurance will completely cover your back in the event of an accident? Think again. If your car is declared a write off, comprehensive cover may not bridge the gap between what your old car is worth, and what your new car will cost.

Sobering thought right?

But there is a solution.

If you’re unlucky enough to have your car written off, Value Protect Insurance provides the additional coverage you need. An add on to your comprehensive insurance, it’ll kick in if your comprehensive insurer makes a total loss payment for an accident that occurs during the period of your finance/contract.

So, what actually gets paid out?

Great question. VPI will pay the greater of the following:

• The loan settlement amount you owe your car financier, less the total loss payment

OR

• The replacement vehicle value less the total loss payment. This should cover the gap between the vehicle that’s been written off and the one you’ll purchase to replace it. The replacement vehicle value is set when you apply for your VPI, however, the replacement value can’t be more than the value of your vehicle at the date the policy comes into force.

There’s also the added bonus that if you have new for old replacement cover and you don’t redeem your VPI, you’ll get your premium (less minimal administration costs) back.

Are there any restrictions?

There are some limits to VPI. Your vehicle must not be:

• More than 10 years old when the cover is taken out
• A motorcycle
• Used as a taxi or a courier, delivery or any other vehicle used to transport goods for hire, fare or reward

Can VPI be part of my car finance package?

When you take out VPI with us, yep, it absolutely can. A lot of financiers don’t offer this option, but as your one-stop auto shop, we’re more than happy to help you out. Alternatively, you can pay via monthly instalments or one up-front payment.

Easy right?

Things to keep in mind

As with any kind of insurance, it’s your responsibility to determine whether VPI coverage is right for you. That’s why we recommend you take the time to consider the Product Disclosure Statement and ensure the level of coverage provided is suitable for your needs. When making your decision, you should consider:

• The amount you’ve borrowed under your loan contract
• The amount your comprehensive insurer will potentially pay out in the event of a total loss payout
• The potential difference between the amount payable under your loan contract or the likely replacement cost for a new car and the total loss payment

You should also consider how much you can afford to be out of pocket if the worst happens and a total loss occurs.

Questions?

We’re here to help, so bring it on! For more information on VPI and how it can provide added protection in the event of a serious bingle, contact us.

Thanks to the digital revolution, selling your car is easier than ever. But when it’s still under finance, co-ordinating a sale can be trickier than expected. Here’s how to get over the hurdles, sell your car and keep your buyer and lender happy in the process.

What’s the big deal with a financed car?

When you take out a standard car loan, your car is held as security against that loan. That way, if you default, the lender can repossess your car and sell it to recover the outstanding amount. So far, so simple right?

Mmm, not quite. The problem is that the loan is attached to the car itself, not you as the owner. So if the car is transferred from one owner to another, the loan (and any outstanding loan balance) goes with it.

So how do I sell my car?

Long story short – if you still owe money on a secured car loan, you must pay it off in full before you can sell the car. To get the ball rolling, you’ll need to call your lender and confirm how much is outstanding. And remember, if you’re paying out the loan before the end of the loan period, you may also have to pay additional fees like a break fee, a cost-recovery fee and/or an admin fee. Costs differ between lenders so make sure you take everything into account before taking action.

If you don’t have the cash to pay out the loan before you sell the car, you can use some or all of the money from the sale itself. However, you’ll need to square this up with your lender beforehand, so make sure you check with them first.

Be honest with your buyer

Smart prospective buyers will do a public search for your car on the Personal Property Securities Register, so if you have any thoughts about hiding the encumbrance (i.e. the fact that it’s under finance), don’t. Instead, let them know right away the car is under finance, and explain how you’re planning to pay it off. That way, everyone knows where they stand from the very beginning.

Need more help?

If you’re thinking about selling a car you’ve purchased with a loan from Platform Direct Finance, get in touch. Our expert team can provide you with obligation free advice designed to take the stress out of the sales process, ensuring you and your buyer walk away smiling.

If you’re a frequent driver, you’ll no doubt have noticed that petrol prices are creeping up again.

But don’t despair, a few changes in your driving behaviour can actually help to offset these rising prices. Read through our top 5 tips below.

1. Don’t speed
No, really.. slow down if you want to save on fuel costs. Statistically, fuel consumption dramatically increases when your speed goes over about 90 km/h. Using techniques such as cruise control can help maintain a steadier speed which should also help reduce fuel usage.

2. Check your tyre pressure
Few drivers check tyre pressures regularly, but maintaining the maker’s recommended level uses less fuel and lengthens tyre life. It’s easy to keep on top of this because the correct pressure is usually written on a small sticker inside the driver’s door and the air pump at the service station is free!

3. Opt for a smoother drive
Driving at a consistent speed with less starting and stopping is much better for fuel consumption. Sorry peak hour drivers, this can mean sitting in traffic is actually costing you more. You should also avoid unnecessary acceleration and opt for taking your foot off the accelerator when you notice the traffic is stopped ahead of you.

4. Run all your errands in the same trip
This might sound obscure, but your car burns more fuel when it’s warming up. So, if you’re planning to make a few short trips in a day, try to do them with less downtime in between. This will ensure your engine is kept warm, and will burn less fuel getting back to its optimal temperature.

5. Reduce unnecessary weight from your vehicle
Still have those golf clubs in the boot of the car? It could be costing you. The more weight your vehicle carries, the more fuel it uses. So, make sure to take unnecessary items out of your car when you’re not using them.