When you purchase a vehicle you don't want to ever think about the day that you are going to need to get rid of it. At the same time, very few cars last for decades on end, so drivers often need to plan ahead so they can keep driving along without substantial delays. If you have a car, truck or van that needs a lot of work, you may want to donate it instead of trading it in at the dealership or sending it to the junkyard. Here's how the act of giving can help you receive much more for your vehicle than anticipated, and with a lot less legwork on your part.
Selling Your Vehicle To A Junkyard Limits Your Options
Getting your vehicle taken away to a local junkyard is as simple as dialing a phone number. In most cases, yes, you will get some money back for your vehicle and even more if you have the title. When compared to charities that make 'donate my trucks' solicitations to the public, vehicle owners who go to the junkyard end up receiving way less money. The main advantage of junking your car is that it is fast and you get cash upfront, but if you can wait until it is time to file your federal taxes you can get a lot more back in the form of a refund.
Vehicle Trade-Ins And Sales
Car dealerships are usually eager to take decent working vehicles off of the hands of potential new car buyers. Sometimes car dealers will even accept vehicles that are not working, but the amount of your vehicle trade-in will also suffer. The fact of the matter is that any car dealer who takes a vehicle trade-in is looking to make a good profit. As opposed to going the donate my trucks charitable contribution route, a vehicle trade-in usually locks you into a new vehicle financing agreement and you will not receive fair market value for your car.
Donating Your Vehicle And Increasing The Size Of Your Tax Return
If you are thinking, "how can I donate my trucks, cars, or vans and get a bigger tax refund," you only need to understand a few simple rules. First, the Internal Revenue Service mandates that all vehicle donations have to involve legitimately registered and recognized charities. Second, your donated vehicle has to be used for charitable means, such as for the charity it was donated to or person who has a need for a vehicle and is directly involved with the charity itself. Lastly, the charity that your vehicle has been donated to needs to claim all responsibility as it relates to repairs and vehicle servicing. If you are able to confirm that all of these rules have been met, your next federal tax return may be surprisingly hefty.