INTRODUCTION
There are many situations in which a vehicle ceases to be an asset and becomes a liability:
- It was totalled in an accident & has been written off by your insurance.
- It will cost more to fix than it's worth.
- It has little or no trade-in value.
- It's a lemon that you don't want to pass off on someone else.
- You don't want to go through the hassle of selling it.
- You're unable to find a buyer to take it off your hands.
- It's been sitting so long that it doesn't run anymore.
- It's in pieces... a project that you never got around to.
No matter what your situation, there are options.
SELLING WORKING VEHICLES
If your vehicle is saleable, but you just don't want the hassle of finding a private buyer, see if there's a CarMax location near you and ask what they're willing to offer.
Of course, you could try selling your vehicle to any used car dealer, but make sure that you have a realistic idea of its value first by visiting Kelley's Blue Book. When shopping around, get offers in writing.
Avoid consignment lots unless they'll agree to let you verify the final sale amount by showing you the actual bill of sale. Likewise, avoid pawn shops. They'll charge you for storage (which may or may not be secure), and car insurance will still be your responsibility.
CarAlternative.com will tow your car, truck, van, motorcycle, boat, jet ski, snowmobile or RV, and sell it at auction for you. Note that your vehicle must be on wheels, even if that means a trailer. You're unlikely to make much money this way, since auction selling prices tend to be very low. CarAlternative takes a 20% or $400 commission (whichever is less), in addition to towing, auction and other fees. However, all the work is done for you.
Allen Price's Used Car Values offers free towing and vehicle recycling in exchange for vacation, airfare and/or cruise coupons. They pick up cars nationwide except for Mississippi and Michigan.
DONATING VEHICLES
Another option is to donate your vehicle to charity. It will be sold at auction and the net proceeds will go to a worthy cause. You'll receive a tax deduction of either $500 or the actual selling price of your vehicle, whichever is greater. Be aware that you'll have to file an itemized return to take advantage of this deduction, and that only donations to 501(C)(3) organizations are eligible.
We recommend first calling your favorite charity directly to see if they offer a car donation program. Try to look beyond the well-known national charities. Find a cause that's meaningful to you, or that benefits your local community. If your car still runs, drop it off yourself rather than having it towed. This will increase the amount of money that your charity receives.
Another way to donate your vehicle is to work with a middleman. The middleman organization arranges for towing and auction, then passes the net proceeds on to charity. Middlemen can make a lot of money from service fees, which is why there are so many of them. Never fear! We've gone through the list to find who works the hardest to help others.
Our list was first narrowed down to organizations that provide nationwide service, that benefit more than one charity and that are charities themselves. The list was further refined by removing middlemen who make it difficult to get their organization's details, as well as those with legal histories of concern.
Lastly, the 990s of the remaining organizations were reviewed. A 990 is a form used by the IRS and state charity regulators to make sure that revenue is used for charitable purposes, rather than profit.
If you're interested in seeing this information for yourself, search here. You can learn how to analyze 990s here.
Only two car donation charities made it to our final list. The first is Cars 4 Charities, which operates on a shoestring budget and gives the majority of their gross income (not net!) to worthy causes. They guarantee a minimum of 65% of the sales price to the charity of your choice. Their charity partners report receiving closer to 75%.
This is no small thing. Many car donation sites promise 100% of their net proceeds to charity, but only after they take out their hefty fees. Cars 4 Charities keeps their expenses to a bare minimum so that they can pass on as much as possible. Of course, they still have to pay for towing, auction fees, rent, a website and so on, but no-one is getting rich off your vehicle.
If Cars 4 Charities won't work for you, Vehicles For Charity is a good place to turn. The organization is a division of the Metropolitan Association for Retarded Citizens. The net proceeds from your vehicle's sale are split between MARC and a charity of your choice. You can learn more about MARC here. Vehicles for Charity accepts donations of cars, trucks, boats, motorcycles, and recreational vehicles.
NON-WORKING VEHICLES
If your vehicle is in pieces, try selling the parts on Ebay. Also see if there's a used parts dealer in your area that specializes in your type of vehicle. They might be interested.
If your vehicle has been totalled, or no longer runs, you may be able to sell it to a salvage yard or scrap metal recycler. Call around. Some companies charge for towing, some don't, and some might actually give you a little cash in addition to towing. Only do this with true junkers. Vehicles that still run are worth more than a salvage yard will pay.
And finally, if absolutely no-one wants your vehicle, you can still avoid towing charges. Junk My Car is a free vehicle removal service covering the United States and Canada.
KHHow2s
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