Many people would opt for selling their used car for what it is worth. But then, does everyone get what their car is worth? Not really. Most of them get much less than the market value for what could well be their second largest asset. The best way to get the most out of your used car is to go in for car donation.
|Car Donations - Prevent a Well-Meaning Act From Going Wrong|
When one opts to donate a car they may be a well-meaning thought behind the gesture but this can easily go wrong if the very act of car donation is done through the wrong channels. While there are many charities that will be only too obliged to have you donate a car, it is important to go about it in the right manner to get the maximum results.
Firstly, when one decides to donate a car, it is to let some charity have it in order to help them. The second reason is to get the maximum market value for the car in terms of tax benefits. When a buyer will not pay the fair market price for a used car, the government will - by including the donation in your tax exemptions to the amount of the market value of the car.
In order to meet the goal of taxation benefits and to ensure that the car gets to the people it is intended for, one must ensure that the donation of the car is carried out through the proper process. To achieve this one must keep out any middlemen in the process.
If you are lured by billboard advertisements or ads anywhere by organizations offering to help you donate your car, you should beware - someone is paying for these advertisements and it well could be a portion of the value of your used car. These people are mostly profitable organizations and individuals in the game for money.
Look for a national level vehicle charity yourself. If you cannot donate to the charity you support because they cannot accept a car as a donation then a little research will get you to the right charity that could use your car or find an individual of organization that can. If after your research you still feel compelled to use an intermediary, you should ask outright how much they would be giving to the charity. Then decide if it is worth the trouble of using them.
It is also recommended that you should ensure that the charity you are donating your car to has approval for donations by the revenue authority of the region. If they don't, you will not be able to claim the tax deduction and your exercise will be futile. A church, synagogue, mosque or temple will usually be a good enough charity for your used car and enable you to avail of tax benefits too.
So, when you decide to donate a car, do a bit of research first. Determine whether there is any fee charged by the charity you choose as pick-up payment and title transfer charges etc. before processing your donation so you are fully aware of making the right choice for your vehicle donation effort. This way you will eventually benefit from tax deductions and also be sending out hope - on wheels - for a worthy beneficiary.