If you have a car that you would like to replace or get rid of, you have some choices to consider. You may choose to sell the car on your own, using online or paper advertising. If you're buying a new car, you may be able to trade your car in on the new purchase. For a quick sale, you can also seek out a company that does cash for cars in Florida. These companies will either sell the car to another buyer, or use the car for parts. You may also consider donating your car to a charity, which comes with its own set of pros and cons. The Pros of Donating Your Car to Charity • If you are doing a good deed for someone else, you can end up being the one who reaps the rewards. If you would like to make a donation without dipping into your cash flow, donating a car may be a good option. Some of the charities that accept cars sell the car to make money for their cause; others give the car directly to someone who is in need of a car to take care of their family. • If you take the car directly to the charity, instead of having them come pick it up, it can increase the value of your gift. Also, it helps to get the paperwork done immediately. • Donating a car is very easy to accomplish. Selling a car, especially on your own, can be very time consuming and stressful. There is not very much time or work involved in donating a car, which makes it a great option, if you are very busy. • If you donate a car to an eligible charity, you can deduct the value of the car from your taxes. You may want to check with your accountant to see how much can be deducted. • You may want to check your charity through a charity checker such as, Charity Navigator, to make sure the charity you choose has a non-profit, tax-exempt status. Choose a charity that is qualified under the IRS. You can also find out how much of your donation goes directly to the program and how much is used for administrative costs. The Cons of Donating a Car to Charity • If you donate your car, you will lose out on the money you would have made selling it or trading it in. If you need the money to enable a new car purchase, you may want to consider selling it instead. • Your vehicle is most likely not worth quite as much to the charity as you would hope. Usually the charity will give away your car or the proceeds at lower market values. • Your tax deduction amount is based on the price the charity sells it for, which can diminish the tax deduction value. If they sell your car for parts, it could completely eliminate a tax deduction. • It may take a long time for the charity to process your paperwork; therefore, if you are hoping for a deduction on the current year, you should donate by November at the latest. Be aware that to claim a tax deduction, you will need to itemize your tax return. Check to see how much extra that will cost you in preparation fees. There are advantages and disadvantages to donating your car to charity. If you are making the decision to donate, because you want to help others, be diligent in checking the charity you choose. If you are hoping to enjoy a financial gain, you may want to choose another option, like cash for cars in Florida or placing an ad to sell it.
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