Donating your old car gives you the opportunity to get rid of your old, clunky vehicle and at the same time help charitable institutions. Aside from those, you can also get some tax deductions when you donate your used car.
Like other people, you might be wondering why do you need to donate your old car when you can trade it in to get a new one? When you look at it, the logic in that move is very sound. You go to a dealer and you bring your old car and minus the value of that to the amount you have to pay them for a new car.
It may work for some people to have an old vehicle traded in exchange for value and a new vehicle but this is not always the case. A lot of car dealers are not willing to take old cars because they are very hard to resell. Due to the car’s age, its parts are also not that viable due to the normal wear and tear. Let’s say you have a car with a market value of $1,000. Most likely dealers will be willing to give you $300 for it. In contrast, you can get a better deal for a tax exempt when you bring it to a car donation group.
Do the math and it will make more sense financially to donate your old clunky car. Aside from having a better value thru a tax return, you also have to weigh how you can help charitable organizations and communities.
Car donation organizations reach out to different charities that support projects for taking care of the elderly, helping the sick, contributing to education, and environmental causes. Donation centers make sure that the donation process is also very easy for used car owners.