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Top 5 Reasons To Donate Your Car Instead Of Selling It

Cars are valuable assets to have. They help you continue with your employment travel, help feed the family through grocery shopping, and let you travel with ease and comfort. Some enjoy their cars as it is, while others include additions to the vehicle like new seat covers, dash cam, GPS, and much more. 


Almost everyone today has a car. However, not everyone can afford to maintain one, which is why many opt to sell or give it to charity. Written below are some perks to opting to donate your car.


1) You receive a tax deduction


Legally speaking, donating vehicles allows you to have a tax reduction when transferring the property. If you decide to take your car to an IRS-registered 501(c)(3) charitable organization, then you will be eligible for a tax deduction for the vehicle you donate.


If you donate a vehicle, the money you owe in taxes, you can lower your tax bill by the federally allowed limit for the car donation.


Also, depending on what organization you opt to donate to will determine how much they'd help you go through the donation process smoothly. If asked, the organization you've chosen may pick up your vehicle for you before donating it to those in need or auctioning the car.


When the donation process is complete, ask for a receipt from the charity organization. Hold onto it as a personal record until the next time you do taxes. This will help give you a tax break.


2) Can quickly get rid of a car with costly repairs and high maintenance


A car is referred to as a depreciating asset. It means it has value, but its value diminishes if not correctly cared for. Sometimes, the price of repairs and maintenance is so much that some people feel that it's not worth the effort to fix and costs too much to sell. For example, a car may need new parts, which might be challenging to find and cost over your budget. Here, you can opt to donate the car.


You may think that a person who is unable to afford a vehicle won't be able to afford the maintenance expenses, replacements, and repairs. You might be right. However, some car donation centers send donated cars to get fixed into usable condition. They do this through donated mechanic labor or by hiring. The organization then sells the car.


Depending on what organization you choose, they either give the car to those who need quality, reliable transportation or sell it to another person. The money from the sale should be used for services going towards the community and operational expenses.


3) Help those in need who can't afford a Vehicle


Many aren't able to save enough for an upfront purchase of a vehicle. There also is the sales tax that is paid when buying a car. Your donation will remove the barrier to this significant expense, along with the maintenance expenses that accompany car ownership.


People without cars rely heavily on public transportation. This gives them little mobility and provides many other hurdles in life. For example, imagine having to take time to go to the grocery store every day, sometimes multiple times a day, because you can only carry a few bags at a time. Or if you're sick and have to sit in the trains for an extended period of time before going to the doctor instead of hiring expensive ambulances when it's not an immediate emergency. A car donation makes these types of tasks easier to handle.


4) Lower your Expenses


If you have a vehicle you aren't using, then there's little point in keeping it. The longer you have it, the more money it'll cost, even when you aren't using it. Having a car requires ongoing maintenance expenses, insurance, and license registration. Some states may collect an annual property tax on vehicles and require emissions inspections. You can decrease these expenses by seeking out car donation centers and passing your vehicle for better use to someone else.


Additionally, by donating your vehicle, you'd be able to increase your savings account or pay down debts with the money you would be spending on keeping the car.


5) Support Community Organizations


Charitable organizations' main aim is to aid those who can't help themselves. Consequently, they depend on donations to keep their services open and available to the community. By making a donation, you are helping that organization with needed funding for operational expenses in its mission to help better the community.


Many charity organizations use paid volunteers. Because many of them need the money for living expenses.

By donating, you can help increase job employment in centers that help provide funds to aid the less fortunate.




Donating vehicles may be beneficial for not only the receiver but also the donator. By donating, you're receiving the benefits of tax deduction, as well as providing a cheaper alternative to paying maintenance and repairs before selling your vehicle. Many different organizations work with donations. Each offers different options that best suit your desire to help those less fortunate.