How to Junk your Car vs. Donate your Car

To junk a car or donate a car? This article tells you which one is a better choice. Can you make cash money? How much can you use as a tax write off? This article clears it all up.

Things You'll Need

• Old car you no longer want

Instructions

1. First, decide if your car is demolished or if it is running. If it is running, or could be repaired with little to moderate effort, it is worth considering to donate your car. (Move to step 2).

   If your automobile looks like a crushed tin can and would need a miracle to get it running again, then it is most likely better to scrap it. To scrap your car, go to your local online or print newspaper's classified Auto and Wanted Ads. Someone will have an ad that says "We Buy Junk Cars, etc." Find one that will tow the car for free and give you an estimate over the phone prior to picking it up. They can usually tell you how much by the make, model, and year of the car. They basically have a program that tells them how much your car is worth according to the pounds of metal your vehicle is made of. Don't expect much more than $100 or less. If they will offer you money, meet them and accept the payment on the spot. If they won't offer you money, but will tow your junked car for free, keep their number and call 2 or 3 other ads to see what they say.

2. Secondly, find out how much your car is worth. This will help you decide how much money you can save from donating your car.
   Go to Kelly's Blue book at KBB.com
   Fill in the information and it will tell you the depreciated blue book value of your car in its present condition. If your car is less than $500 then, you can deduct the blue book value from Kelly's Blue Book off of your taxes after you donate the car.

3. If your car is valued at more than $500, you can donate it to a church, or charity organization. If they are going to auction or sell your car, you can request a copy of the sales contract amount once it is sold and you can legally deduct the amount that the vehicle sold for. The only exception to this rule is if a charity uses the donated car as a part of their business. In these instances, a person is allowed to deduct at market value.

4. To find the market value of your car go to: www.Edmonds.com

5. In conclusion, when it comes to car donations and deductions, you will either: make a deduction based on how much a charity sells your car for, make a deduction according to blue book value if the car is less than $500 or make a deduction according to market value.

Tips & Warnings

• The author of this article is not a tax consultant. Please contact a certified tax consultant for questions and info regarding the details of this subject.

• Please note, market value and blue book value consider the time depreciation of a vehicle. They are not the same as retail value.