Car Donation: What You Need to Know

Has your old car finally bit the bullet? Is that junker taking up valuable space in your garage? If you need to get rid of your junk car fast, car donation could be a great option for you. 


But what do you need to know before donating your car? Is it the best option for you or are you better off selling the car for cash? Read on to find out!


What happens when you donate a car?

If you choose to donate your car, it is important to know what you’re getting in to. Donating your car can be a great way to help a local charity while also benefiting yourself! When you donate your car, you’ll be giving it to a local charity who will then either use the car, or trade it in for cash. 


Sometimes, if the car is still in decent shape, the charity can use it to complete deliveries or transport supplies. This only works if the car is still safe to drive, though. It is more likely that the charity will trade your car in to a junk car buyer, like Junk Car Traders, for cash they can use towards their mission. 


Can I write a car donation off on my taxes?

The biggest benefit to yourself when it comes to car donation comes during tax season. You are able to write off the full retail value of the car on your taxes. So when you file, make sure to itemize your deductions, rather than take the typical amount. Otherwise you’ll get nothing for your trouble!


What do I need to do before donation?

Just like selling a car, there are a few things you’ll need to do before the donation to transfer ownership of the car over to the non-profit. 


  • Make sure to transfer the title over to the charity. This is very important, as otherwise you are still the owner of the car and liable for it. Also, make sure to remove the license plates when you hand the car over.
  • Notify your DMV that you have donated the car, to ensure you are not liable for it.
  • Do your research on the charity before the donation. Just like with selling a junk car, you need to be sure you’re getting a good deal and the charity is reputable. Check with the IRS to make sure they are a registered non-profit.
  • Get free towing! You shouldn’t have to pay to get the car towed away. 


Donating your car is a great way to get rid of that junk car while also helping a local organization. To get started, start researching local charities that accept car donations and feel good!

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