East Lindsey council introduced charges at 13 sites in 2013 in a bid to offset government funding cuts.
The authority is now consulting on the introduction of an overnight parking charge across all its managed sites.
Deputy leader Graham Marsh said free parking was re-instated after feedback from businesses and the public.
More on this and other local stories in Lincolnshire
He said: "I can see the logic for it [charging] - trying to get a consistent strategy across the district - but it didn't work and different areas have different needs."
Mr Marsh said it was hoped the changes would be a permanent measure.
The council announced in December it was considering a Â£2 overnight parking charge on all paid car parks in the district, but this is yet to be implemented.
Mr Marsh added: "We need to assess what impact it will have, and realistically will it raise sufficient money for what it costs?"
The authority is currently trying to make savings of Â£6m by 2019/20.

Students from Kent School in Maryland launched The Oyster with a time capsule onboard off the New Jersey coast on 13 June and tracked it across the ocean.
Robert Morgan from Tenby found the boat in Swanlake bay, near Manorbier, while collecting rubbish from the beach.
Kent School said they were "thrilled" the boat had reached Wales.
The outside of the vessel contained a message in English and Spanish asking whoever found it to deliver it to the local "middle school" - or pupils aged 12-14 - who they said would find a list of email addresses and other items inside, and asking them to contact the school.
In a message to BBC Wales, the school said: "We are thrilled that The Osprey made landfall in Pembrokshire. It was launched on June 13.
"We look forward to interacting with students who may have a chance to view the contents of our time capsule."
Mr Morgan said he had been unable to remove the vessel from the beach himself as it was very heavy and he did not have transport, but he reported it on social media and it has now been taken to Greenhill Secondary School in Tenby.
Matthew Davies, deputy head, told BBC News: "We had a message yesterday which came through from a member of staff who also works for the local lifeboat.
"He went to pick [the vessel] up and has brought it into school."
The boat featured in a Year 8 assembly first thing in the morning and is now waiting to be opened.
"Our excitement was at fever pitch. We're going to wait for our head teacher to make contact with the school in the US and then hopefully do a live weblink with them and open it up."
Mr Davies added he hoped the boat's arrival would see the start of a link with Kent School.
Asked about the possible contents of the capsule, he said: "I'd have to leave that to the children. If we were sending them one out we'd maybe send one which was representative of our community and our school. But I'd guess maybe an American flag and a state flag."
Free all-day car parking has been re-instated at 10 sites in Lincolnshire, three years after it was scrapped to save money.
[NEXT_CONCEPT]
An unmanned boat sent by a school in the USA has washed up on the Pembrokeshire coast three months after it set sail.