So many people have to let go of their old vehicle when they decide to update, regardless of whether you drive a Volvo, Toyota, Chevrolet or Honda. SUV’s, sedans, mini vans and even convertibles all become obsolete in style, features and performance and eventually you will be ready to move onwards and upwards. In wear and tear, minor repairs and breakdowns, an average vehicle owner can spend over three thousand a year. With the latest models you will be covered by warranty and have a very minimal chance of ever breaking down.
So you decide to make the change, but you still have no idea what you should do with your other car. Selling it can be a hassle, since you would definitely need to give it a detail clean, fix some minor problems with the interior and organize advertising. Some older cars, depending on the brand, simply have no buyers in the market anymore, so all the trouble trying to sell can be a wasted effort.
An alternative option many Americans are choosing is to donate their vehicle: Of course it has benefits to the charity, but there are also personal reasons to do it too. You may have previously thought it to be a lazy thing for people with too much money to do with their extra vehicles, but you will soon see how crafty it is for the average tax payer. Everyone loves tax deductions, and when you donate the old vehicle that is what you will get. This means at tax time you can expect to receive a larger refund. There are some rules you should be aware of upfront before you rush out and organize your new car:
* To receive a tax deduction equivalent to the market value of your donated car, it must be donated to charity and they must use it for allowable “charity purposes”.
* If the charity you donate your vehicle to sells your vehicle, your tax deduction will be equivalent to the amount they sold it for.
Your choice to donate your old car will be a huge help to a charitable organization who no doubt desperately needs it. The tax rebates are purely an added bonus and extra encouragement for those who are concerned about losing the money. Many old cars wouldn’t sell for market value privately, but by donating it you will receive that amount. If you can’t be bothered selling it and you know that old car could sit there forever and never be used, take some time out of your day to drive it to your nearest and favorite charity and arrange the donation. Saves the messy yard and means your tax refund check will be larger than you are used to!