If you have a vehicle that you are no longer using, you may want to consider donating this vehicle rather than selling it. This is because there are several unique benefits that come along with car donations versus car sales. Continue reading to learn more about a few of the ways that you can benefit by choosing to donate your unwanted vehicle.
Benefit #1: Help Your Community
It is important for individuals to support the communities that they live in. Choosing to donate your unwanted vehicle is one way you can choose to do this. By donating your vehicle to a local charitable organization, you will be able to help the members of your community who are less fortunate. In some cases, these vehicles will be given to individuals who require reliable transportation but are unable to pay for a vehicle. More oftentimes, these vehicles will be sold for scrap metal to junk car buyers and the proceeds from these sales will be used to fund programs in the community where you live.
Benefit #2: Reduce Your Tax Liability
When you sell a vehicle, the law requires you to pay income tax on any money you receive from this sale. This means that you will owe more taxes at the end of the year. The opposite is true when you choose to donate your vehicle. Rather than being charged income tax on the resale price of your car, you will be able to claim the value of your donated car as a tax deduction on your income taxes. This tax deduction will lower the total amount of income that you are required to pay taxes on. This can greatly limit your tax liability for the year and may even result in you qualifying for a tax refund.
Benefit #3: Avoid Potentially Dangerous Situations
When you list a vehicle for sale in the local classifieds, you will have to meet with a variety of potential buyers all of whom are strangers to you. In many cases, these individuals will want to come to your home to look at the vehicle you are selling and may even ask to test drive your vehicle. While the majority of these individuals will be harmless and have no intention other than potentially buying your car, it is also possible for criminals to respond to your ad in an attempt to gain information or to gain access to your home and vehicle. When you choose to donate your vehicle rather than sell it, you can completely avoid the potentially dangerous situations that can arise from the need to meet up with strangers to try and sell your vehicle.
Contact a local car donation program, such as Cars For Kids, to learn more.