Money Management

Want to buy a car in 2024? There are good deals on electric vehicles — new and used. See how to maximize your EV tax credits. [[{“value”:”

The past few years of rising costs of car insurance, car repairs, and other expenses of car ownership have been painful. But many Americans are still feeling optimistic about their personal finances and want to buy a new car in 2024.

One way to get a better deal on buying a car in 2024 is to buy an electric vehicle. Many new and used EVs (and some plug-in hybrids) qualify for EV tax credits that can give you a significant discount at the dealership.

Let’s look at a few ways to maximize your EV tax credits and get a better price on buying a car in 2024.

1. Buy a new vehicle that gets a $7,500 EV tax credit

The best way to get the biggest EV tax credit is to buy a new electric vehicle. But many new EVs don’t qualify for the full $7,500 EV tax credit. The IRS has complex rules for where the new EVs must be made (with “final assembly” in North America), and where the EV battery materials can come from.

Most of the new EVs that get the full $7,500 tax credit were made by American car companies. Here is a full list of car companies with new EVs (and one plug-in hybrid) that can get the full $7,500 new EV tax credit, as of March 1, 2024:

Cadillac LyriqChevrolet Bolt (EV and EUV)Chrysler Pacifica Plug-in Hybrid Electric Vehicle (PHEV)Ford F-150 Lightning (Standard and Extended Range Battery)Tesla (several varieties of Model 3, Model X, and Model Y)Volkswagen ID.4 (several varieties)

Some new EVs and plug-in hybrids will qualify for a reduced tax credit of $3,750. Check out the full list of qualifying new vehicles at FuelEconomy.gov.

2. Buy a used vehicle that gets $4,000 in used EV tax credits

Demand for used EVs has declined during 2023, and that means there might be some good deals on pre-owned electric vehicles. Many car shoppers are worried about range anxiety, but many used EVs might still have a lot of warranty left on the battery. Buying a used EV could help you maximize your EV tax credits by getting an even bigger discount on an undervalued car.

You can get used EV tax credits of up to $4,000 if:

You buy a qualifying used EV with a sale price of $25,000 or less.The used vehicle is from a model year that’s at least two years older than the current year (so: model year 2022 and older).Your income is below a certain limit (the income limits are lower for used EV tax credits than for new ones).

The pre-owned EV tax credit is equal to 30% of the used car’s sale price, or up to $4,000, whichever is less. (So if you buy a $25,000 used EV, you get a $4,000 credit. If you buy a $12,000 used EV, you get a $3,600 credit.)

Here’s a fun aspect of the used EV tax credit: You can buy a much wider range of vehicles! Used EV tax credits don’t have the same complex rules about “where” the car was made, so you aren’t limited to mainly American car makers.

FuelEconomy.gov has the full list of used cars that qualify for EV tax credits, but here are a few examples:

Audi e-tron (2019, 2021-2022)BMW 330e (2016-2018, 2021-2022)Hyundai Kona (2019-2022)Hyundai Tucson Plug-in Hybrid (2022)Kia Niro EV (2019-2022)Porsche Cayenne E-Hybrid (2015-2021)

Buying a used EV might give you a better price on car insurance, too. And if range anxiety is a concern of yours, buying a used plug-in hybrid can give you EV tax credits and a reassuring, gas-powered engine.

3. Don’t want to buy an EV? Leasing can help you save

Here’s one last strategy to maximize EV tax credits: lease an EV. If you lease an electric vehicle, the dealership might (but is not required to) give you a discount equal to the price of the EV tax credit. That’s because on leased EVs, dealerships themselves claim the EV tax credits — and they (hopefully) will pass that discount on to you.

I personally would not lease a car; I prefer to buy my vehicles and own something after the auto loan is paid off. Auto leasing is not the right choice for every situation. But if you’re worried about losing money to depreciation on a newly purchased EV, if you want to try an EV before you commit to a next-generation EV battery in a few years, or if you just want a lower monthly payment, leasing an EV could be worth considering.

Leasing an EV can give you some of the upsides of maximizing EV tax credits, without the commitments and maintenance costs of car ownership. You still have to pay for car insurance with a lease though, and the insurance costs might be higher than you’d pay on a car you own.

Bottom line

The best way to maximize your EV tax credits is to choose the right vehicle. Only a short list of cars qualify for the full $7,500 of new EV tax credits. But if you’re willing to look at used vehicles, you can find a much wider selection of makes and models — with used EV tax credits of up to $4,000. Be sure to shop around for price quotes on EV auto insurance before you go to the dealership.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

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Putting your tax refund into a CD could help you grow your wealth, but it’s not right for everyone. Here’s what you need to know. [[{“value”:”

You’ve done the hard work and filed your tax return, and now you get to reap the reward. You’ve got a nice refund check headed your way. You just need to figure out the best place to put it. If you’re looking to save that money for the future, you have several options.

A certificate of deposit (CD) is one of them. But it might not be a good fit for everybody. Here’s how to decide if it’s the right choice for you this year.

How does a CD work?

CDs are a type of savings account that many banks and credit unions offer. They tend to offer high annual percentage yields (APYs), sometimes even higher than what you can find with high-yield savings accounts. And they’re locked in for as long as you have the CD. But the tradeoff for these high rates is a lack of accessibility.

When you open a CD, you agree not to touch the money in the account for a certain amount of time, known as the CD term. This could be anywhere from a few months to several years, depending on the CD you choose. If you withdraw your money early, you’ll pay a penalty, usually equal to several months of lost interest.

Is a CD the right home for your tax refund?

Given the restrictions on CDs, it’s probably not a good choice for your refund if you hope to access that money in the next few months. You’re better off going with a high-yield savings account. These accounts don’t guarantee your APY, but they also enable you to access your cash freely whenever you need it.

That said, a CD might not be a bad choice for those who don’t need to use their refund anytime soon. CD rates are high right now with some offering as much as 5.00% APY. The average tax refund as of Feb. 16, 2024, is $3,207. If you invested that in a 1-year CD with a 5.00% APY, you’d have over $3,367 in 12 months. And you could potentially wind up with a lot more interest if you invest in a longer-term CD.

What type of CD is best for you?

Short-term CDs tend to have term lengths of less than 12 months while long-term CDs have terms of a year or more. Generally, longer-term CDs offer higher interest rates. But with the high inflation rates lately, we’re in an odd situation where short-term CDs offer the most competitive rates. If you only want to lock up your money for a little while, this is the way to go.

However, many believe interest rates on CDs are going to begin falling in 2024. When rates begin to fall, it’s often seen as a good time to invest in long-term CDs because you can lock in a high rate. This could potentially pay off in the long run, but you have to be comfortable leaving your money alone for an extended period.

What you do with your tax refund is ultimately your call, but it doesn’t hurt to crunch the numbers and see what a CD could offer you. If you don’t feel it’s a good fit, you can always fall back on a high-yield savings account.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Home prices have been on the rise. Will that trend continue? Read on to find out. [[{“value”:”

If you’ve been struggling to buy a home due to elevated property values, you’re not alone. Home price gains were strong in 2023, as evidenced by data from the S&P CoreLogic Case-Shiller Indices.

As of December, home prices were up 5.5% on a year-over-year basis. Not only that, but home prices showed monthly gains in 17 out of 20 major metropolitan areas tracked by the indices.

But are home prices going to keep gaining in 2024? Unfortunately for buyers, they might. Here’s why.

It’s all about interest rates

As a buyer, you may be wondering how homes keep managing to gain value when it’s so expensive to sign a mortgage. You’d think that would lead to a decrease in buyer demand — and a decline in home values, not the opposite.

Here’s the problem, though. In 2020 and 2021, mortgage lenders began offering record-low rates in response to the economic crisis fueled by the pandemic. Many existing homeowners refinanced their mortgages back then to take advantage of those ultra-low rates. And now that mortgage rates are higher, current homeowners don’t want to move. If they do, it could potentially mean signing a new mortgage at a rate that’s more than twice what they’re paying now.

That’s a big reason why home prices managed to climb in 2023, and why they may continue to climb in 2024. Even though higher mortgage rates are pushing some buyers out of the market, there’s still not enough inventory to go around because people don’t want to move.

The National Association of Realtors reports that as of January 2024, there was only a three-month supply of available homes on the market. But it can easily take up to a six-month supply of homes to meet buyer demand in full.

Inventory is unlikely to increase until mortgage rates decline, though. So buyers may be stuck in a bit of a holding pattern for a while.

Will things get better later in 2024?

The Federal Reserve is expected to start cutting interest rates at some point in 2024. This won’t necessarily cause an immediate drop in mortgage rates. But in time, lenders may start lowering their rates. By the end of the year, we could see lower rates than what we’re seeing today, which could push some existing homeowners to sell.

But for now, buyers may have to accept that they’ll be looking at paying a premium to buy a home. And if you’re hoping to move forward with a home purchase despite it costing more, run the numbers carefully to make sure your total monthly housing costs won’t exceed 30% of your take-home pay. Those costs should include mortgage payments, property taxes, homeowners insurance, and other predictable costs. Going beyond that threshold could make it difficult to keep up with not just your housing expenses, but your bills in general.

Also, although it’s true that mortgages are expensive to sign right now in general, ultimately, each lender sets its own rates. So it’s important to shop around for a home loan rather than settle for the first offer you receive. A little extra research could result in some much-wanted savings.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Funds provided by a grant could help you grow your business. Here are a few grants for female entrepreneurs to explore. [[{“value”:”

Many women want to expand or start a business but can’t afford it. Taking out a small business loan is one option if you’re a woman with entrepreneurship goals. Another is to apply for business grants to help fund your initiatives. Some grants are available specifically for women-owned businesses and entrepreneurs. I’ll share details for a few grants below.

What is a grant?

A grant is a fund awarded to a person or business by another person, organization, nonprofit, or company. Unlike loans, grants don’t need to be repaid. A person, business, or organization must apply for a grant to be considered.

The organization awarding the grant collects applications and decides how to award the fund. The quest to land a grant can be competitive. A grant can be an excellent way for businesses to take their companies to the next level or help a person or organization start a business.

If you’re hoping to grow your business or need help funding operational costs to start a business, consider applying for a grant. Ensuring you meet the eligibility requirements before filling out an application is vital.

Here are a few grants for supporting women-owned businesses and entrepreneurs.

1. Amber Grant

The Amber Grant was founded by WomensNet, one of the first organizations to award women-owned business grants. The organization now awards three $10,000 grants each month and three $25,000 grants each year. You’re eligible to apply for an Amber grant if you’re an adult and have a business that’s at least 50% women-owned and operates in the U.S. or Canada.

2. HerSuiteSpot

HerSuiteSpot is a microgrant available to business owners who are women of color. The Yva Jourdan Foundation partners with HerSuiteSpot to provide monthly $1,000 HerSuiteSpot microgrants. Eligible women can apply for one each month. Your business is eligible to apply if it’s 51% owned by women of color, currently registered in the U.S., and has less than $1 million in gross revenue.

3. Galaxy Grants

Another option is Galaxy Grants, which are made available by Hidden Star. The nonprofit Hidden Star supports underprivileged, low-income, and minority entrepreneurs in the U.S. Women and minority-owned businesses can apply for Galaxy Grants. Winners will receive a grant of $2,750. Applications are accepted through March 31, 2024.

4. EmpowHer Grants

Another grant resource for women entrepreneurs to explore is EmpowHer Grants. These grants are made available to women with early-stage businesses that focus on making social change. Grants of up to $25,000 are awarded every quarter.

This grant is available to female business owners who are 22 years old or older. The business must operate in the U.S., address a social issue, and not be more than three years old. Applicants can request up to $25,000 in business support. The grant is awarded as reimbursement for business-related expenses.

When applying, applicants must include a business plan and detailed budget. To receive funding, applicants must self-report their credit score and agree to a third-party background check. Applications are being accepted for the current quarter through March 31, 2024.

5. IFundWomen BOTOX Cosmetic Grant

IFundWomen and BOTOX have partnered to support women leaders and help close the confidence gap. Through the IFundWomen BOTOX Cosmetic Grant program, 20 women business owners will receive a $25,000 grant, one-on-one coaching, and mentoring.

Business owners of any gender can apply. Applicants must be legal residents of one of the 50 states or the District of Columbia, own a business that operates in the U.S., and be at least 18. The business can’t be a multilevel marketing company or franchise. Applications are being accepted through March 19, 2024.

Look for ways to fund your business goals

Business grants could help you afford to start a new business or improve your current venture. Stay alert to grants that could help you take your business to the next level.

Alternatively, if your financial situation is deterring you from growth, consider exploring other ways to fund your small business. One option is to take out a small business loan.

For additional guidance on essential money matters for business owners and entrepreneurs, check out our free small business resources.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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