Should You Donate Your Junk Car or Sell it for Cash?
The average car on the road is pushing 12-years-old. But Americans are holding onto their modes of transportation longer than ever. DMV statistics from 2014 showed that every state in the country had at over 1 million vehicles over the age of 16 registered. The number of older cars came to over 53 million compared to almost 253 million roadworthy vehicles nationwide. Many of the older cars undoubtedly just take up space and yet, car owners are still often unaware how easy it is to sell a junk car for cash. But as the end of the year approaches, the question looms, should you donate your junk car or sell your junk car for cash? Well, the answer depends on a number of personal variables.
How Much Time Do You Have to Research?
It’s a common belief that donating a clunker is the easiest way to get it off your hands while helping others, especially charities or tax-exempt organizations. But far too many of these so-called companies or charities prey on the harried or good-natured, especially around the holidays. Not all that glitters is gold, so do your research and make sure their claims really are legitimate before handing over your title to someone who’s trying to make an easy hustle.
How Good Are You at Paperwork?
The IRS used to have lax rules regarding charitable donations, especially higher value items like cars. But they’ve gotten tougher in recent years. Today, claiming a donation on your tax returns requires the claimant to jump through specific legal hoops. The right forms and full itemization of the donations must be provided. If you have no issues with that, great. But even in the event professional tax assistance is implemented, trouble and disappointment may arise when you’re informed you don’t meet the criteria for a charitable donation and have to claim a standard donation. That can lead to extra headaches and less financial return in the long run.
What’s the Fair Market Value of Your Vehicle?
If you want to attempt to claim a donated vehicle, you’ll need to know the donated item’s exact worth. And even then, $500 is the top amount anyone can expect to get refunded. Of course, that’s with the conditions that the correct paperwork and forms are filed, all donations are properly itemized, and the charity or company in question provided you with all the paperwork needed to prove the worth of the “gift”. If any of those are missing or unavailable when attempting to file, you’ve basically just given your car away.
How Quickly Do You Want or Need the Cash?
If everything lines up and you are able to claim a donation on your tax return, you’ll still need to wait at least until the upcoming tax season to receive the return. But deciding to recycle your car can help you get cash back on the spot. One call is all it takes to set up an estimate, arrange free towing if necessary, and get cash in hand in trade for your title. You won’t be able to claim the sale on your taxes, but there are no hoops to jump through either. Give us a call when you’re ready to discover how easy it is to sell your junk car for cash in Detroit.