When it comes to getting rid of your old jalopy, do you know your choices? Many people would get in touch with a junk car removal company or attempt to sell their vehicles themselves through windshield signs, lemon lots, or classified advertisements. What you may not realize is that your can get a great deal more out of your hunk of junk by donating your car rather than selling it.
Why donate a car? Well, why not! When you donate your car, you provide a means of transportation to individuals who were previously without, allowing them to hold jobs they couldn’t before due to the lack of transportation. Also, many agencies have programs like Car Donation for Veteran Charity that will accept the donation of your car, then overhaul the vehicle and sell it to a third party, thus earning money for the charitable organization.
There are a variety of organizations that accept donations of cars, trucks, recreational vehicles, boats, and trailers. These organizations include the American Diabetes Association, Kars4Kids, Firefighters Burn Institute, American Red Cross, Habitat for Humanity, and the United Way. Donating your car is a great way to help these charitable organizations achieve their goals of providing assistance and care to individuals of all walks of life.
If your car is just a hunk of junk rusting in your front lawn, you’re probably thinking, “I will sell my junk car!” Apart from doing that, you can also contact a charitable organization that accepts car donations. For the most part, organizations will accept vehicles that no longer run assuming the value can offset the towing fees. Yes, the organization will even haul away your car for free!
The main question many individuals have regarding car donations is simply: why donate when you can sell? Although many individuals would like to donate their time, money, or goods, many individuals need the funds from selling a car to purchase a new vehicle. The main reason why individuals choose to donate their car or recreational vehicle is because the donation is tax deductible. If your vehicle is worth under $500, then the deduction can be taken immediately. However, if your car is worth over $500, the charity will send you a specific value for deduction. This value is usually the sell price of your vehicle.
This tax deduction is perfect for individuals whose vehicles are worth less than $1,000, since generally they will be hard pressed to either trade in or sell their car for that value. Instead of receiving a pitiful amount for your old vehicle, consider the impact a tax deduction can make at the end of the day. Use your tax refund towards the purchase of a new car instead of trading in your car for a fraction of its potential price.
Donating recreational vehicles, including boats, campers, and trailers are another great way to give back to the community while reaping the benefits on your taxes. Often, the market for these vehicles is limited and individuals are often stuck paying storage costs or other fees while they are searching for a buyer. Instead of watching your investment diminish, contact a charity that will accept the donation and immediately see your gesture benefit both parties. Many charitable organization that accept cars may not necessarily accept these vehicles, so be sure to contact any organization before you show up with your boat, camper, or trailer.
Donating your vehicle is an excellent way to give much needed support to charitable organizations while also benefiting your tax return. If you find yourself in possession of a vehicle that is no longer working for you, consider donation before you take out that classified advertisement and let an organization haul your car away for free!