What To Do With Your Old Car: Sell It To A Junk Car Buyer Or Donate It For A Tax Benefit?

If you have recently been in a serious car accident or your car has finally driven its last mile, you obviously need to determine the best way to get rid of the vehicle. Two of the most common options are to sell it to a junk car buyer or donate it to a favorite charity. Unfortunately, choosing between the two is not always easy, and it is crucial to consider the specific benefits that will apply to your unique situation.

Why You Should Re-Think Giving The Car Away

In theory, it is a great idea to provide a deserving charity with your unused, damaged or nonworking vehicle. It is easy to assume that the charity will then do something useful and helpful with your old car, while you get to write off your good deed on your taxes.

The truth is that not all charities are as benevolent as you might like, and you may not be allowed to write off the existing value of your car, even if the value has already been lowered due to its condition. You can only use your donation as a deduction if the charity with whom you are working has been qualified by the federal government as an acceptable charity.

You also only have the option of writing off the amount that the charity sells or accepts it for. If you were thinking that the amount of your write-off would be similar to what the junk car buyer would offer you for it, you may be unpleasantly surprised.

Consider The Junk Car Buyer

The junk car buyer has long been known as the person who will write you a check or give you cash in exchange for the car that you cannot drive again or that would need significant repairs to do so. When the benefit of repairing the car is not equal to the cost of repairing it, the junk car buyer is often the best option.

It only makes sense that an immediate payment is usually preferable to an eventual deduction you may be able to take from your taxes. However, you should also remember that there are other questions to consider that could impact your bottom line.

They include:

  • Towing fees and the time limits for doing so

  • The presence of your car title and whether or not there is a lien on it

  • Different offers from different buyers-make sure you get multiple bids

To learn more about selling your car to a junk car buyer, contact a company like Ingram Auto Sales Inc.

In conclusion, always be sure that any person or organization that buys or accepts your vehicle transfers the title within the legally mandated period of time. Otherwise, you could be legally responsible for the vehicle, long after you thought your business was completed. Whether you choose to sell or gift your vehicle, be sure that your rights and responsibilities are always protected.