Unless your car is a collector’s item or family heirloom, you’ll likely be getting rid of it at some point.
Simply allowing the vehicle to just sit in your yard is definitely not a good idea. It’ll gradually decrease the value of your property and take up extra space. You should either sell the vehicle or donate it to a charity. Let’s find out which choice benefits you the most.
Why Sell Your Car?
Helps You Buy a New Car
If you are planning to purchase a new vehicle in the near future, your old ride may prove to be a valuable asset. It’ll help give you a little more financial flexibility. With the average cost of a new car now being more than $36,000, buyers can certainly take advantage of the extra cash. You may be able to make a sizable down payment.
However, it’s a good idea to find out exactly how much money your vehicle is worth. Automotive sites, such as Edmunds, will give you a good estimate of its true market value. A car that’s in decent running condition will obviously demand the most money. On the other hand, trying to sell a vehicle that needs major repair work may prove to be daunting task.
Need the Extra Money for Bills
Surprise expenses can occur at any given time. Some of the unexpected expenses include a major home repair, medical care, and last-minute travel. Instead of dipping into your savings account for the extra cash, you can opt to sell your old vehicle. There’s little need to keep a vehicle that you rarely use. If the car is in relatively solid shape, someone will be willing to buy it. People are always looking for a good deal.
Opportunity to Take a Vacation
Most people are more than happy to take a vacation. Nothing beats being able to have fun with your family and friends. However, vacations usually aren’t free. If you have an old vehicle at home collecting dust, it could fund a nice getaway. Budget-savvy travelers may be able to pay for their entire vacation with the money. Bringing in at least $1,000 from the sale of your vehicle will make a big difference. It’ll help pay for things such as your hotel stay, meals, and plane tickets. You can even use the money to visit an amusement park.
Why Donate Your Car?
Help a Charity
Helping a charity can be a great feeling. You’ll be able to truly have a positive impact on someone’s life. A car that’s still in running condition is especially beneficial. For example, the charity may use the vehicle for transporting people to the doctor or delivering meals to homes. Donating an old junker can also greatly assist charities. The parts from the car can be sold to salvage yards for extra money.
There are plenty of different charities to choose from. Some of the most popular ones include Goodwill, the Make-A-Wish Foundation, and Kars4Kids. By doing a bit of research, you’ll be able to easily find a good charity to support.
Tax Reductions
In exchange for your contribution, the federal government is willing to give you a tax incentive. This means you won’t have to pay as much money to the IRS.
In order to obtain a tax write-off for your donation, you must do a little homework. After the charity sells the vehicle or decides to use it for work, expect to receive a written certification. You also must consider the vehicle’s actual worth. It’s in your best interest to get an independent appraisal. The greater the vehicle’s value, the better the tax reduction. Be sure to keep track of the necessary paperwork.
Avoid the Hassle of Selling the Vehicle
Some vehicles will be harder to sell than others. This can become a major source of frustration. To avoid the extra hassle, opt to donate the vehicle instead. Some charities will even pick up the vehicle from your home for free. It’s a win-win situation for you. There’s no need to advertise the vehicle or respond to emails and phone calls from potential buyers.
Get Rid of a Junker
Unused vehicles take up unnecessary space. While sitting in your driveway, the vehicle’s condition will gradually begin to go downhill. After a while, it may become a major eyesore. Neighbors may even start to complain. Donating the vehicle is a logical solution. You’ll be able to get rid of it without paying any additional towing fees.
Which Should You Do?
Choosing between selling and donating a car isn’t always an easy decision. A lot of people will enjoy having the extra cash in their pocket. Some vehicles will be able to get a lot of interest on the used market. On the other side of the coin, the emotional boost of helping out a charity cannot be overlooked. You also need to consider the potential tax benefits that come with donating a car. Before you make a choice, take the time to weigh the pros and cons.
As you can see, both methods of ditching an old vehicle can be beneficial. To determine the best route to take, do your own research. There’s a lot of valuable information at your disposal.
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