Money Management

This writer has pulled off three budget-friendly trips to Disney. Read on to see how. [[{“value”:”

I never thought I’d be one of those people who takes their kids to Disney World more than once. When I travel, my preference is to get off the beaten path and seek out destinations that are remote and not filled with tourists. Disney is anything but.

However, because I love my kids, I conceded to visiting Disney not once, but three times over the past six years. And while those three trips definitely had the potential to break the bank, I made one smart move each time that led to a world of savings.

When you don’t pay a premium for a hotel

A day at Disney can be a really full one with morning to night rides, shows, and activities. When we planned our Disney trips, we knew we didn’t care about where we stayed.

We didn’t need a high-end hotel with great amenities — we just needed some beds and a place to shower. So we opted to stay off-property — meaning, at a non-Disney resort. And it was a great decision for a few reasons.

First, there’s the money you’re spending for a place to shower and sleep. The cost of a night at a Disney resort can vary based on your travel dates and the property in question. For a week in September, Disney’s Animal Kingdom Lodge might cost you anywhere from $466 to $651 a night, plus taxes, for a family of four. For that same week, a Marriott property just minutes from Disney costs $156 to $176 a night (plus taxes).

Also, when you stay at a Disney hotel, you’re pretty much trapped in the Disney ecosystem. This means that if you want anything from a quick breakfast to a sit-down dinner, you’re going to pay up. When you stay off-property, you can choose from any dining option outside the parks, which is generally likely to be much cheaper. And if your hotel has a kitchenette, you can even shop for groceries and prepare some meals at your home base, thereby adding to your savings.

Also, there’s the convenience factor. You might think that staying on property is easier, but that’s not necessarily so.

Some Disney hotels make it easy to get to and from the park because they’re within walking distance or on the famous monorail path. But in some cases, you might end up waiting a really long time for a shuttle to take you back to your room. And after a 10-hour day at the park when you have tired, cranky children to put to bed, you really do not want to be waiting for 45 minutes for a shuttle.

When you stay off-property, you may have access to a shuttle service with a much shorter wait time. Or, you can summon a rideshare. Sure, that might run you $30 or so. But if you’re saving $300 a night on lodging, you can justify that cost pretty easily.

Consider an off-property stay for your Disney trip

Staying off-property at Disney is something you should strongly consider if you want to spend less on your travels. To be clear, a Disney trip is never going to be a budget vacation. It’s important to get that out of the way, because even if you visit during the least expensive weeks of the year, you’re looking at potentially spending hundreds of dollars per day just to get in and give Mickey Mouse a wave.

But staying at a non-Disney hotel could make an otherwise pricey trip a lot more affordable, especially if you take a budget-conscious approach to dining. And that could make it possible for you to swing a repeat trip or two — that is, if you have the patience for it.

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool recommends Marriott International. The Motley Fool has a disclosure policy.

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Hybrid cars offer a compromise between electric and gas vehicles. Find out what benefits hybrids have to offer. [[{“value”:”

Hybrid car sales are racing ahead as drivers look for ways to reduce emissions without going full-on electric. According to data from car expert Edmunds, hybrids almost doubled their market share in 2023.

For some, hybrids offer the best of both worlds. You can save money on gas and be greener without worrying about where to plug in or how to cover longer distances. Hybrids can also make financial sense and let you drive in carpool lanes. Here are some other hybrid perks that may surprise you.

1. Some hybrids qualify for tax credits

For hybrids and EVs, the tax credits can be confusing — particularly since the rules are constantly evolving. For example, new requirements that came into place at the start of this year require that a percentage of components and minerals be extracted and/or processed in the U.S. or certain countries with free trade agreements. The cars need to be assembled in North America and there are also income limits on who can claim.

Traditional hybrids don’t qualify for the tax credits (worth up to $7,500), but some plug-in hybrids do. Plug-in hybrids, also known as PHEVs, have much larger batteries that act as the main power source for the car. As top auto insurer, Progressive, explains: “A plug-in hybrid’s electric battery can be recharged at home or a public charging station. A full hybrid car recharges its electric battery using its gas-powered engine.”

Actionable takeaway

A $7,500 credit can go a long way to offsetting the higher costs of an EV or PHEV. Even better? You don’t need to wait until you file your tax return. You can claim it as soon as you buy the car and the dealership will do the paperwork with the IRS. You can also get a $4,000 credit toward a used electric vehicle.

However, only a limited number of makes and models qualify. Go to the Fuel Economy website and talk to car dealers to find out exactly which ones.

2. You’ll save money on maintenance

Research by Consumer Reports showed that plug-in hybrids cost less than half as much to maintain as their fully gas counterparts. It puts the average maintenance costs of a gas-powered vehicle at $0.061 per mile over the lifetime of the car. In contrast, PHEVs come in at $0.030 per mile.

Sadly, there aren’t yet enough studies. Even the Consumer Reports one comes with a warning as it used a limited sample size. The logic makes sense though. Hybrids incur less wear and tear on their engines, put less stress on the brakes, and require fewer oil changes.

On the flip side, hybrids often cost more to insure. Not only are the cars themselves often more expensive, but the new and relatively complex technology pushes up premiums. Repairs can be more costly and parts can be more expensive.

Actionable takeaway

To work out the running costs of your hybrid, you’ll need to factor in the fuel consumption as well as maintenance estimates for the specific models you’re considering. Shop around with the cheapest car insurance companies to reduce your day-to-day expenses as much as possible.

3. They hold their value better than EVs

Running costs aren’t the only consideration when buying a hybrid — or any other type of car. Your car will likely be worth a lot less when you come to trade it in or resell it. The good news is that an iSeeCars study showed that trucks and hybrids depreciate less than other vehicle types. On average, hybrids only lost 37% of their value over five years. In contrast, electric vehicle values fell by almost 50%.

Depreciation has a big impact on the total cost of owning a car. Let’s say you spent $40,000 on a hybrid vehicle. Here’s how your costs could add up:

If it depreciates by 37% in five years, it would lose $14,800 of its value. You might sell the car for $25,200.Research from Kelley Blue Book shows that five years of fuel, insurance, financing, and other fees could set you back another $30,000 or so.That means the cost of owning the car would still be around $45,000 across five years, or $9,000 a year.

Actionable takeaway

There are steps you can take to preserve your car’s value, such as regular maintenance and trying to keep your mileage low. But the best way to protect yourself is to look for cars with high resale values, meaning the lower depreciation rate is great news for hybrid owners. Use resources like Edmunds or Kelley Blue Book to understand the true cost of ownership.

Bottom line

There’s a lot to consider when weighing the pros and cons of gas, electric, and hybrid vehicles. On top of the environmental and financial considerations, practical questions about driving an EV have caused some consumers to apply the brakes. The many perks of hybrids have made them a popular stepping stone for consumers who aren’t ready to go fully electric.

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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.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.

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No matter what its condition, there’s a way to profit off of your old car. Here are four options for you to consider. [[{“value”:”

You’ve got an old car you’ve outgrown — maybe it’s collecting dust in the garage or maybe you’re still driving it but dreaming of something better. Getting rid of it could free up extra space for you and take some costs, like its auto insurance premium, off your plate. But the question is, what should you do with it?

You probably have more options than you realize. Here are four ways to get that car out of your life and put a little extra cash into your bank account at the same time.

1. Trade it in

Trading a car in could be a good fit if you’re looking to purchase a new vehicle. You take your old car to a dealership, it decides how much it’s willing to pay for it, and you can use its value to reduce the cost of your new vehicle’s purchase. For example, if you own the car free and clear and the dealer decides it’s worth $5,000, that’s $5,000 off your purchase price of a new vehicle.

But things get a little more complicated for those who still owe money on their old car. You’ll have to pay off the balance of your loan at the time of the trade-in and only the value left over after this counts toward your new car purchase. If you’re upside down on your loan — you owe more than the car is worth — you’ll have to pay your lender the difference between the loan balance and the trade-in offer when you trade the vehicle in.

This method could make sense for drivers who have low-mileage or newer vehicles in decent condition that have a high trade-in value. It might also make sense for cars that need repairs if you think repairing your old vehicle would cost more than buying a new one.

It’s worth getting quotes from a few dealerships before accepting a trade-in offer. To do this, gather all necessary documentation, including the vehicle’s title, the details of any auto loans you have, your vehicle registration, and driver’s license. You may also want to do some research into your car’s value on your own so you know if you’re getting a fair deal.

2. Sell it

Selling your car on your own is another option for those who don’t want a new vehicle right now or those who don’t think they’d get a decent trade-in value for their old car. There are two ways you can do this.

First, you can sell to a private party on your own. You’ll have to advertise the car, take care of setting up test drives, and negotiate with prospective buyers. If you have a loan on your vehicle, you’ll also have to speak with your lender so you know how to properly go ahead with the sale. When you and the buyer reach a deal, you’ll have to sign the title and give them a bill of sale.

Selling this way could net you more money than you’d get by trading your car in at a dealership. But you’ll probably encounter your fair share of scammers too. You’ll have to be careful to ensure the person you’re working with doesn’t write you a check that bounces or takes off with your car on a test drive.

The other option you have is to sell to an online marketplace like Carvana. To do this, you enter some basic information about your car into the site and you’ll receive an offer right away. If you decide to accept, the marketplace will come pick up the vehicle and pay you the agreed-upon price. This is simpler, but unfortunately, it’s usually not possible to negotiate on their offers.

3. Scrap it

Scrapping your old vehicle could make sense if it’s in poor shape and won’t fetch much as a sale or trade-in. This could also be the way to go if your vehicle’s manufacturer is no longer making certain parts.

To do this, you’ll need to gather the vehicle’s title, your registration, and your driver’s license. You’ll also want to remove your license plate and any personal belongings from the vehicle before you hand it over.

Look for a reputable scrapyard to work with. You can check out reviews online or get recommendations from friends. If there are a few in your area, it’s worth getting quotes from each of them to see which offers the best price.

4. Donate it

Donating your car could allow you to get rid of it more quickly than you could with any of the above methods. You won’t earn a profit from this, but you could earn a tax break. Plus, you’ll be helping a good cause.

You can’t just give your car away to anyone if you want it to count as a donation. You must give to a qualifying tax-exempt organization. It may use the vehicle for transportation or hauling goods. Or it might sell it and use the proceeds to fund its mission.

In most cases, your tax deduction is equal to the car’s fair market value. But if the charity sells the car, your deduction is limited to the lesser of the sale price or the car’s fair market value. The only exception is if the car sells for $500 or less. Then, your maximum deduction is the lesser of $500 or the fair market value.

You’ll have to sign over the title to the charity. Then, you’ll need to include the vehicle identification number (VIN) and the date of the donation on your Schedule A when you file your tax return. You’ll also need to complete Form 8283 if the car is worth more than $500.

It’s worth exploring a few options before you decide how you want to get rid of your car. Think about what’s most important to you — selling it quickly or beefing up your bank account — and let this guide you toward the best choice for you.

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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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CD rates are higher for short-term CDs than longer-term ones for the first time in almost four decades. Read on to learn how to capitalize on it. [[{“value”:”

Certificates of deposit (CDs) have become a popular investment in recent years. As the Federal Reserve has raised interest rates, CD rates have skyrocketed in response.

But some investors may notice something weird about the CD market right now. There’s something going on that hasn’t happened since the 1980s, and it’s a phenomenon that could really benefit savers.

Here’s what’s happening.

The CD market is experiencing something it hasn’t for more than 30 years

For a very long time, there’s been a simple rule of thumb when it comes to investing in CDs. CDs with longer terms paid higher rates. That’s because banks reward people with better returns if they’re willing to lock up their money for longer periods of time. These higher yields were necessary to convince people to agree to leave their money invested for years, since they were taking on more risk by doing so.

In January of 2022, for example, the average rate on a 5-year CD was 0.26%, while the average rate on a 6-month CD was 0.09%. And in January of 2000, more than 20 years prior, the 5-year CD offered an average yield of 5.41% compared to 4.54% for a 6-month CD. (It’s worth noting that average rates are much lower than the rates high-yield CDs offer, but they still offer insight into how rates are trending).

While the exact numbers varied, short-term CDs have paid lower rates than long-term CDs for decades.

Things changed recently, though. In May of 2023, the average yield on a 5-year CD was 1.20% while the average yield on a 6-month CD was 1.29%. And average yields on 6-month CDs have been higher than those on 5-year CDs ever since. This is the first time that has happened since 1989! That was more than 35 years ago.

Why are short-term CDs paying higher rates right now?

The phenomenon going on in the CD market right now is known as an inverted yield curve. While this sounds technical, it’s actually pretty simple. A yield curve is just a visual representation of the cost to borrow money over time. It slopes up in most cases because of the “term premium.” That’s the extra amount of compensation given to people willing to commit money for years and accept the uncertainty that goes along with doing that.

Right now, though, banks don’t want to promise to pay people high yields for the long term because there’s strong reason to believe interest rates are going to fall soon. The Federal Reserve (the U.S. central bank) has made clear it wants to lower rates as soon as inflation comes under control. Banks don’t want to be caught holding the bag and paying upward of 5.00% to investors with long-term CDs if interest rates go down.

As a result, the yield curve has flipped, or inverted. Historically, that’s been a worrisome indicator of a recession, but many experts believe that’s not necessarily the case this time for a variety of reasons including strong job growth, solid economic activity, and the basic fact that the post-COVID-19 economic environment is pretty unique in a bunch of ways.

Why is this unprecedented switch good for savers right now?

Putting aside all of these technicalities, what this means for savers right now is that they can lock up their money for just a few months and get paid a really high rate — upward of 5.00% with many CDs.

Savers don’t have to take on really any risk since most CDs are FDIC insured and they aren’t making a long-term promise that would mean taking a chance of getting stuck in a bad investment for years if market conditions don’t go their way. They can earn an extremely competitive ROI that was unheard of just a few short years ago and still get their money out in just a few months’ time.

Take advantage of this unusual opportunity

A few years ago, a “great” rate on a CD was one paying around 2.00% or 3.00%. Now, you can easily earn 5.00% on your money without taking on any risk of loss and without agreeing to give it to the bank for years to come.

If you have any cash you won’t need in the coming months, there’s no reason not to take advantage of this opportunity while you can. Just check out The Ascent’s guide to the best 6-month CD rates to find tons of options and buy a CD today. Many have no minimum balance requirements, so you don’t even need much money to jump in.

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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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