Are you about to sell your old car and move on to a new one? You're probably thinking that you'll trade it in and apply what you get from it to make your car financing less expensive. After all, that's what the vast majority of new car buyers end up doing because a trade-in is the easiest way to go. The problem with a trade-in, however, is that the auto dealer might not be giving you the best possible deal on your old car because you're a captive audience, more or less. You're there at the dealership, you want your new car, and you'll take the less-than-ultimate price for the sake of convenience. Whatever extra money you might make from selling your old car privately will probably be eaten up by all the time and effort you put into selling it - meeting with potential buyers, scheduling those meetings, and all the various "time charges" a private sale implies. Instead of these typical options, you may want to think about donating your old car to charity.
Benefits of Donating Your Car
Donating your old car to charity has several benefits. One of the most important and tempting benefit to donating your old car to charity is the tax benefits you will receive for doing so. When you donate your old car to charity, you can claim the market value of the old car as a tax benefit. You will have to turn in an itemized tax deduction form, of course, but by doing so you are saving what could be a significant amount on taxes. Bear in mind that most people don't itemize their tax deductions for any number of reasons - but only people who turn in an itemized tax form will receive tax benefits from donating their old car to charity.
To determine whether donating your old car to charity is worth it compared to trading in your vehicle, be sure to consult with a financial advisor for their advice on the matter.
