The sidewalk has been rolled up on the Cash for Clunkers program for a long time, but scrap steel is on its way up, making it an attractive option for someone to dump an old wreck. The $100 or so dollars a ton for scrap metal may not amount to a whole lot, especially since most cars these days are light on steel and heavy on the plastic. If you don’t want the hassle of having to sell the car yourself, and the car is not really worth a lot, consider a car donation instead. There are several organizations that collect cars and send the proceeds of the future sale on to a variety of charities. They may let you choose the charity, they may pool the money and divide it between the charities that they support, or the charity itself may run the program. In fact, you can donate a car with proceeds going to animal shelters and pet charities.
When people donate cars and trucks, the organization issues you a receipt. They may issue you a simple form recording their receipt of the vehicle, like an invoice. When it sells at auction, you will receive a receipt for your taxes. Other groups give you a donation receipt on the spot. Check to make sure you know the group’s procedure. All, or a percentage of the sale may be written off as a charitable donation in the calendar year in which it was received. The cars at auctions are sometimes purchased by dealers and refurbished as used cars, for hobbyists looking for a good body to restore or for parts. Other groups sell the roadworthy cars on lots, which not only help out the charity with cash, but provide low cost vehicles for people who are trying to get on their feet. I know several folks, including myself, who were able to purchase a reliable vehicle with cash. They continued their schooling, were able to get a job or merely ended their isolation with a set of wheels. One set of wheels leads to an upgrade of something even more reliable as they get on their feet.
When you decide to donate your car, make sure that the title is clean. In other words, you must be the owner of record. If you have a car sitting in your garage that a relative asked you to “do what you want with it,” you must have them sign the title over to you, unless they authorize the organization to pick it up. The receipts would then be in their name. Secondly, out of courtesy, remove all personal effects and give it a good vacuum. Make sure that it is in an accessible place. Of course, you want to be there when it is picked up, but if it is in a driveway unblocked by other vehicles or at the edge of an open garage, the truck can take it without damaging any property.
Have you ever donated a car, or have you benefited from buying a car that was donated to a charity lot? If so, comment and tell me what you think. If you are in an end of the year crunch for an extra donation write-off, why not clean out that space behind the garage? Someone might be able to use their “after Christmas” money as the last little bit they need to buy it off the charity lot, or some organizations will give you a receipt outright.