Selling Cars vs. Donating Cars: Which is Right for You?
Anyone who owns a car was on one side of the process of selling –on the side of the buyer. Even if you’ve never sold a car yourself, understanding how the sales process works are easy because it’s like buying or selling anything else. But donating a car is a completely different story. It’s something weird and new, and in our automotive environment, it has its place. But how do you know which is right for you? To answer that, we will be comparing the sale to the donation of a car;
What is the difference in donating a car from selling?
Today, selling a car you own is quite a standard fare. You place an ad online in your local classifieds, be it Facebook Marketplace, Craigslist, or other local source. People interested who have interest in your car will call, text, or email you to meet or haggle on the price. You are showing your car to prospective buyers who are grinding you down on the price you ask. You walk away with money in hand once you settle on a price and they drive away in their new whip.
Selling Has Its Issues
However, the sale of a car has its negative aspects. Getting your car fixed, cleaned, and ready to sell can take a bunch of time. You will receive a lot of messages from people who want to know your lowest price, and then you will never answer again. Meeting people you don’t know can be sketchy–who knows if they’ll steal your car, snatch your wallet, or hurt you.
Benefits of Donating a Car
Giving a car as a donation is a great option for people who want to avoid many of the hassles that come with selling a car. It’s a very simple procedure where you call up a local charity to donate cars, they come to pick it up, and you get a receipt for the donation.
Come tax time, when you file your income tax, that donation receipt will make a difference. How much precisely depends on your financial situation, but it will certainly boost your refund or at least lower how much you owe it.
In addition to the tax benefits, there is comfort in knowing that donating your car will make a difference to the charity. Also, it’ll save you a whole lot of time trying to sell your car that’s the most valuable resource you’ve got!
The downside of donating your car is simply this: you won’t get any financial benefit immediately. There is no money in your hand… but income tax time is coming, for your generosity you will see at least a partial result.
Difference to Trade In or Donate Car
The easy way to get out of your vehicle is to trade in and donate a car. A trade-in could be the way to go if you are on the market to replace your current vehicle. If your car isn’t desirable, however, the dealer might lower the value of the trade-in or say they don’t want it. Plus, you MUST purchase another vehicle to trade-in a vehicle.
On the other hand, if you just want to get rid of your car–essentially withdraw your ride–then it’s better to donate. There’s no need to buy another vehicle, and just as quickly your car goes away.