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Car finance: how to get a deal on a new or secondhand vehicle – The Guardian

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Learn the difference between HP and PCP – and the best ways to drive down the cost
The price of secondhand cars has rocketed, rising at “unprecedented rates”, according to the AA – amid a shortage of new vehicles rolling off the production lines. Incredibly, some models now cost more used than they would new. So even if you are going for secondhand rather than new, still make sure you’re not overstretching yourself.

Check on the prices, running costs and depreciation of different models using comparison tools on Parkers, and What Car? Once you’ve decided on a model, Cargiant.co.uk and Autotrader.co.uk are good places to start your search.
Don’t pay the list price. Dealers will often be looking to hit targets and may be able to juggle figures to increase their chances of closing a deal. Negotiate using the cheapest online prices, and on used cars haggle over any defects, even if they’re minor. If you want any add-ons, such as a satnav, ask for these to be included as part of the deal.
What Car? lists a “target price” for negotiation on new cars which you should check out before heading to a dealer.
The cheapest way to buy a car is usually with cash. But a 0% purchase credit card can be a good option. You need to repay the debt in full over the interest-free period to avoid charges.
For example, Santander offers 31 months at 0% on its balance transfer card with a 2.75% fee. After the 0% deal ends, the rate is about 20.9% APR.
Paying by credit card gives you section 75 protection, making the card provider equally liable with the dealer if things go wrong.
Taking out a cheap personal loan may also be possible. If you have an excellent credit score, rates on borrowing from £7,500 can be as low as 2.8%.
MoneySavingExpert’s loans eligibility calculator finds deals you’re likely to be accepted for using a soft search that won’t leave a mark on your credit file.
Get hire purchase (HP) or personal contract purchase (PCP) finance directly from a dealer. Or use an online comparison site to search for the best rate and find a car once you’re pre-approved for a deal.
Under HP, you pay for the car and interest over the contract period, and the finance company owns the vehicle until you make the final payment.
Under PCP, you take a loan, but won’t own the car at the end of the contract unless you pay a large final “balloon payment”. Alternatively, you can hand back the car, or trade up to a new model and sign up again.
Beware of being lured by low monthly repayments on PCP. These deals typically run for between three and five years, but monthly payments are lower than HP because you’re only borrowing the amount that the new car falls in value over the term, rather than enough to buy the whole car.
For example, a £30,000 model may only be worth £15,000 after three years, so the payments will only cover £15,000.
Matthew Harwood, a car finance expert at Confused.com, says: “HP is the best option, as payments are spread evenly across the term – with PCP, you face paying the lump sum balloon payment.”
Compare costs across the whole market before you sign up.
For example, let’s take a Ford Fiesta Zetec 1.0 EcoBoost at an on-the-road price of £12,000 and £0 deposit.
If you have a good credit score, taking out a four-year personal loan at 5.9%, costs £280 a month. The total to repay is £13,461, according to Confused.com.
Under HP, if monthly payments are £291 over four years at 7.9%, the total payable is £13,964 (including a £10 purchase fee). Under PCP, monthly repayments are £218 at 8.9%. The optional final payment after four years is £4,424 to own the car, increasing the total to £14,911.
Check any setup costs and early repayment charges. Erin Baker, the editorial director at Auto Trader, says: “Adjust your deposit and the term of your agreement to get the right balance of upfront expense and ongoing monthly costs.”
There are a growing number of deposit-free finance deals. But if you do pay a deposit (and you’ll probably get a better rate by doing so), you may be able to get a contribution towards this from the dealer if you take out a specific deal. A deposit contribution is free cash, but compare costs across the market.
Baker says: “Any deposit contribution is typically knocked off your upfront payment rather than the amount you are financing. This can make the cost of a new car more affordable, but monthly payments generally remain similar.”
If you have no desire to own the car, leasing is an option. Also known as personal contract hire, it typically offers cheap, flexible deals – for example you can sign up for shorter terms of only a few months to trial a car.
You can lease a car directly from a manufacturer or through a car finance firm, with many now operating online.
You pay a deposit, and a set amount each month for two to four years. Compare the total cost of leasing deals on manufacturers’ websites if you’re after a particular model, and on comparison sites such as Leasing.com.
But remember, while you won’t take a hit on depreciation, you’ll be left with nothing at the end of the deal.
Leasing a car from your employer can be much cheaper than buying from a dealership. So check if your workplace offers a company car scheme.
For example, you may be able to halve the cost of leasing a new electric car if your employer is signed up to a work scheme.
You’re unlikely to save money by part-exchanging your car for a new one, as the dealer will want to make a profit. If you’re prepared to put in the groundwork to sell privately, check out free listings on Gumtree, eBay and Facebook, or you can pay to advertise on PistonHeads or Auto Trader.
You can also get a valuation, without committing to selling, on sites such as Webuyanycar, Auto Trader and Motorway.
But even though it’s not as profitable, the ease of part-exchanging appeals to many people. “The lack of hassle involved in this option is often worth the small financial hit you’ll take when trading in for a new model,” Baker says.

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5 education issues to watch as Tennessee lawmakers return – Chalkbeat Tennessee

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One year after tackling pandemic-related school challenges during a special legislative session called by Gov. Bill Lee, Tennessee lawmakers return to the Capitol this week with another major focus on students: how to fund public education.
Lee wants to overhaul the 30-year-old formula that determines how much money the state distributes to school systems, as well as how much local governmental agencies should contribute. He’s expected to work with fellow GOP leaders to offer a legislative proposal this month.
But some say the legislature shouldn’t rush that discussion, especially since it took years to come up with the current formula known as the Basic Education Program, or BEP.
“It’s OK to hold this and keep working on it if we need to,” said Rep. Scott Cepicky, a Republican from Maury County. “Let’s get this right.”
Lawmakers also aren’t inclined toward a lengthy session during an election year. They’ll look to pass a budget and wrap up by mid-April, if possible, so they can return home to campaign.
Until then, here are five issues to watch:
Since October when Lee called for a review of the state’s funding formula, Education Commissioner Penny Schwinn has spearheaded the process that included eight town halls and dozens of meetings with policymakers and education leaders.
Last week, she called the issue “the biggest policy decision we make” and said Tennessee should seize this “moment in time.” She also hinted a draft proposal will be unveiled early this week.
“There is funding that is potentially available, there is momentum. We see need across the state,” she told a forum hosted by Tennesseans for Quality Early Education.
The review, which aims to shift Tennessee to a more student-centered funding approach, has drawn public praise but generated private concerns about its intent. Many public school advocates worry the goal is to pave the way for a new private school voucher program halted by ongoing litigation, though the governor has denied that.
“I’m trying to keep an open mind and not draw conclusions before getting all the information,” said Sen. Ferrell Haile, a Gallatin Republican who is on Lee’s 12-member review committee to create a new strategy.
Schwinn said any future formula must factor in the needs of individual children. That includes students who have disabilities, are English language learners, or come from low-income families.
Currently, enrollment is the main component of the BEP, a formula with 46 components that determine how much school systems receive to pay for teacher salaries and other needs like textbooks, technology, and bus transportation. But districts have flexibility on how to spend that money, which explains why the BEP is considered a funding formula, not a spending plan.
“We want to put more money into education, but we want to make sure the money is being spent well,” said Rep. Mark White, a Memphis Republican who chairs a House education committee and supports forging a new formula this year. “Let’s give it our best shot.”
Whether the state revises its funding formula this year or not, the legislature must pass a budget for the fiscal year that begins July 1 — and is flush with cash. Tax collections during the pandemic’s economic rebound were higher than projected. The state also is sitting on hundreds of millions of dollars in federal grants intended to help working low-income families.
Meanwhile, Tennessee ranks 44th in the nation for student funding, according to the Education Law Center, which gave the state Fs last year for its funding level and funding effort.
The state’s BEP review committee, an influential panel of policymakers and education leaders, has urged the governor to prioritize more funding for school nurses and counselors to get Tennessee to nationally recommended ratios. A $110-million annual investment would fund 1 nurse for every 750 students instead of the current 1:3,000, and 1 counselor for every 250 students instead of the current ratios of 1:500 and 1:350 for elementary and secondary schools, respectively.
In addition to perennial discussions about raising teacher pay, there’s talk about expanding Tennessee’s pre-K program, which serves a fifth of the state’s 4-year-olds. Most districts have waiting lists.
During the pandemic, consensus has grown that pre-K and early grades are the best places for impactful interventions to address learning lag and social-emotional challenges.
“It’s a timely topic that is deserving of deep discussions,” Haile said.
A controversial proposal to limit which supplemental materials teachers can use advanced last year in two House panels before stalling in the Senate Education Committee.
Sen. Janice Bowling, a Republican from Tullahoma, promised to bring her bill back for consideration this year and address worries that “good” materials from organizations like the Tennessee Farm Bureau could be excluded.
The bill, co-sponsored by Rep. Terri Lynn Weaver of Lancaster, would prohibit teachers from using materials that supplant state-approved textbooks unless district leaders approve those materials in advance. Any approved print or electronic materials would be listed on district websites.
“We absolutely need to do something,” agreed Sen. Brian Kelsey, a Republican from Germantown, “but we need to do it in a way that doesn’t have unintended consequences.”
The president of the state’s largest teachers organization called the proposal “demoralizing” for teachers and logistically impossible for school districts. For instance, a teacher couldn’t use yesterday’s newspaper in a current events class.
“This is a move toward completely scripted lessons,” said Beth Brown of the Tennessee Education Association, noting that a new Tennessee law already restricts what teachers can discuss in their classes about racism, white privilege, and unconscious bias.
State testing went well last year, with a 95% participation rate despite the pandemic. But lawmakers are still expected to bring several proposals to change when and how tests are administered.
Expect one proposal to require that testing occur during the last 20 days of the school year, instead of the earlier testing window set by the education department.
“That’s going to give our teachers an extra 30 days of instruction time, which is a lot,” said Cepicky.
Other likely legislation would require students in grades 3-8 to continue testing on paper, while local school systems could opt to move students in higher grades to online exams.
This school year, Tennessee high schoolers are taking their exams online under the state’s plan to transition back to computerized testing after several years of technical snafus.
Should teachers be judged on how much their students know — or how much they grow?
Tennessee has mostly focused on the latter when evaluating their educators and schools through an academic growth model that measures learning over time, regardless of whether students are proficient.
But the complexity and opaqueness of the state’s statistical growth method, combined with increasing frustration over low student proficiency, could renew that debate among lawmakers this year.
“We’ve been doing this for 10 years, and where are we?” asked Cepicky, complaining that only a third of the state’s third graders are reading on grade level.
“Meanwhile, we’ve created an evaluation system where a teacher can get an A in academic growth even if their students aren’t proficient readers. We’ve got to get that commitment back to getting our kids proficient,” he said.
Such a move would mark a dramatic change for Tennessee, considered a pioneer in using “value-added” measurements to judge teachers and schools. For a decade, the guiding principle has been that all students can advance, regardless of out-of-school factors like poverty that might hold them back.
Other issues are sure to surface before this year’s legislature, including more funding for charter school facilities and how to address the state’s worsening teacher shortage. The statistics on the teacher supply is especially troubling, with thousands of Tennessee educators expected to retire by 2024 and fewer candidates entering teacher training programs.
“We’ve got to be creating multiple pathways to teaching in our state, and we’ve got to have a competitive wage,” said JC Bowman, executive director of Professional Educators of Tennessee.
The 2022 session of the 112th General Assembly convenes at noon Central Time on Tuesday. Visit the legislature’s website to track legislation, livestream meetings, and contact legislators.
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Chalkbeat is a nonprofit newsroom dedicated to providing the information families and educators need, but this kind of work isn’t possible without your help.
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Made a Lot of Money in the Stock Market This Year? Here's How to Lower Your Capital Gains Taxes. – The Motley Fool

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Returns as of 01/18/2022
Returns as of 01/18/2022
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Despite recent volatility, it’s been a pretty strong year for the stock market. And at this point, you may be sitting on gains in your portfolio, at least on paper. If you’re eager to sell some stocks at a profit and make those gains official, you should know that doing so could raise your tax bill significantly.
Whenever you sell investments at a profit, you’re required to pay capital gains taxes, the amount of which will hinge on how long you hold those stocks prior to unloading them. If you keep your stocks for a year or less before selling them, you’ll be subject to short-term capital gains, which are taxed the same way as ordinary income. If you hold your stocks for at least a year and a day before selling, you’ll be bumped into the more favorable long-term capital gains category.
But either way, capital gains could cause you to owe the IRS quite a bit of money. And so if you’re looking at a big profit this year, there’s one move it pays to make.
Image source: Getty Images.
Your goal as an investor is no doubt to buy stocks that make you money. But sometimes, that doesn’t happen.
When you get stuck holding stocks that are underperforming, sometimes, selling them at a loss is your best option. But the good news is that taking a loss in your portfolio is a great way to minimize the hit of capital gains taxes.
Say you’re sitting on $10,000 in capital gains this year. If you take a $10,000 loss in your portfolio, you’ll cancel out the capital gains taxes you owe. And, just as importantly, you’ll free up money you can use to invest in different stocks — ones that may perform much better or lend to more diversity in your portfolio.
Now you may end up with capital losses that exceed your gains for the year. But that’s OK, because you can use some of that excess loss to offset ordinary income — up to $3,000 worth, in fact.
So, say you take a $10,000 loss in your portfolio but you only have a $7,000 gain this year. In that case, you’ll still get to use your entire loss for the current tax year.
But even if that’s not the case — say, you have a $10,000 loss and only a $6,000 gain — you can carry the remainder of your loss into future tax years and use it to offset your tax bill at the time. So for example, in this scenario, you’d carry $1,000 of your loss into 2022 and potentially use it then.
Making money on stocks is a good thing, but only if it doesn’t cause a huge tax crunch for you. If you’ve profited nicely in 2021, it pays to see if there are losing stocks in your portfolio worth selling. Doing so could really help minimize this year’s tax burden, not to mention set you up with more money to invest with in 2022.

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HOD tackles license portability, policy changes – American Veterinary Medical Association

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The AVMA House of Delegates (HOD) took on issues such as veterinary license portability across states and policy changes at a weekend meeting held January 7-8, during the Association’s annual Veterinary Leadership Conference.
The House’s Veterinary Information Forum addressed ways to make it easier for veterinarians licensed in one state to gain licenses in other states, as well as how to increase support for veterinary team members. During its regular business meeting, the House approved a new policy supporting collection of antimicrobial use data as well as updates to the AVMA policies on rabies and rabies vaccination waivers.
The AVMA News team reported on all of the HOD actions in articles published shortly after the meeting concluded. These are available for all in the profession to read online:
The House also said farewell to four colleagues for whom the weekend meeting was their last one as members of the House of Delegates. Please join in congratulating and thanking these volunteers retiring from the House of Delegates. Those retiring, their affiliation, and years of service were:
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