6 Signs Car Donation Is Right for You

8/24/2017


Someone donating their carIf you've heard ads on the radio, TV or internet extolling the virtues of car donation, you may be wondering if that move is right for you. Should you donate your car? Is that the best decision in your situation? Here are six signs car donation may be right for you.

1. The Repairs Cost More Than the Value of Your Vehicle

All cars need repairs and upkeep once in a while, but as your car gets older, it can get to the point where you're throwing more money into the car than it's actually worth. If you're in that boat, it may be time to just cut the cord and get rid of your vehicle through sale or donation.

2. You Want to Get Rid of Your Old Vehicle Quickly

Selling used cars can take up a lot of your time. You have to put up an ad, field calls and emails and haggle with potential buyers. In contrast, donating your car is quick and painless. You simply bring your vehicle to a charity that accepts cars—some charities will even pick up your car. Then, you sign a couple of documents and the process is over. Consider donating your car if you want to get rid of it fast.

3. You Don't Like the Trade-In Value

Truth be told, trading in your vehicle can be almost as easy as donating it. However, in most cases the trade-in value is far less than the actual value of the car. Who profits from the difference? The car dealer. If you don't like the sound of that arrangement, you may want to let a charity benefit from the value of your vehicle instead.

4. You Want to Help a Local Charity

When you donate a vehicle, you don't just save yourself time and hassle. You actually get the joy of contributing something useful to your community.

For example, at the Newgate School, we use donated cars to train low-income adults to be mechanics. Car donations allow us to provide free education and useful vocational skills to people who really need it. We also have a program where we give recently fixed-up vehicles to single moms in need of transportation. With a simple donation, you could contribute to all of that.

5. You Want an Extra Tax Deduction

Donating a vehicle doesn't just save you time and benefit local charities; it can also help to lower your tax liability. You earn tax deductions when you make donations. The specifics can be a bit complicated, but in general, you get to subtract the value of the vehicle as an itemized deduction. That deduction reduces your taxable income and decreases the amount of income tax you owe to the IRS.

Additionally, if you donate your car to an educational institution where it will be used to train students, you will be able to use the private party fair market value as the tax deduction—the most favorable value available.

6. You've Found a Great Charity

The final piece of car donation is finding the right charity. Oftentimes, you just really want to support your local community and you want to take an active role in supporting a charity’s cause. If you find a charity that you believe in, then the answer is clear: it's time to donate.

The final piece of car donation is finding the right charity. Oftentimes, you just really want to support your local community and you want to take an active role in supporting a charity’s cause. If you find a charity that you believe in, then the answer is clear: it's time to donate.

Contact the Newgate School for more information on how your donation could benefit the lives of others in the community.