If it’s time to part ways with an older vehicle, you may be pondering about the best option for getting rid of it. Perhaps you’ve considered making an auto donation to a worthwhile charity, but aren’t sure if that’s the proper route to take. Certainly, although vehicle donations can be a big help to charities in need, there are some factors to consider.
First, make sure you understand the basic donation process. You donate the vehicle to your chosen charity, they give you written confirmation of receipt of the vehicle, then you’re allowed to deduct the vehicle’s fair market value on your income tax form. In other words, you’re not getting the money right away.
So if you need the cash from the vehicle’s sale to apply toward a new one, then you’re probably better off just selling the vehicle outright. On the other hand, if you can do without the cash coming right away, then an auto donation becomes a much better option. Consider your personal situation, and make the choice that’s best for you.