- Gather information about the charity center or the car donation center where you consider to donate your car. All charity centers are different. Like everything else in life, some are good, while others are working in bad faith. It is unlikely that you will know about it until you have enough information about them. Here are some relatively simple ways to do this.
- Before you donate your car to a charity or non-profit center for car donation, you should check their tax documentation, simply go to the site irs.gov.
- Check the tax deduction. Another point that you want to learn- documentation of the tax deductions that you get when you donate your car. Most charity centers sell donated cars, because the procees of car transfer for destitute or its sale at a very low price create many difficulties. Furthermore, charity centers are dependent on revenues from sales of donated cars in the financing of their mission.
- If the charitable foundation will sell your car, you can get $ 500 or part of the sum that charity organization has gained from the sale of your car. To maximize the tax deduction, you need to learn how the organization is going to sell your car. Some charity funds sell donated cars to the same dealer. This is a fundamentally wrong idea, because the more competition there is, the more likely that the selling price will be higher.
- Other funds put all the cars up for auction. It is a good idea if car is in good condition. However, if the car needs repair or it is in bad condition, it cannot lead to the best possible sales price. The reason for this is that at first buyer pays for the right to participate in the auction and then pays the commission when buying a car. Most buyers take into account these commissions in advance by placing their bets at auction.
- Learn the process. In most cases, you can most profitably sell cars, referring to several dealers who are ready to buy the donated cars. And here’s why. If car is in good condition, it makes sense to put it up for auction in order to allow more customers to place their bets. If car is in satisfactory condition, selling it directly to the dealer engaged in second-hand cars can be the most profitable way, because it can offer a great price to avoid the commission of the auction. If car is in very poor condition, spare parts shop can offer the highest price, so that then resell work items and metal used in the construction of cars, on scrap metal.
- Find out which of the methods of welfare center is going to sell your car. This will help you determine whether they will provide you the greatest amount of the tax deduction for your donation.
