Fender Bender Solution: Donate Your Car
You always try to drive safely and never drive without first buckling up your seat belt. You stay within the legal speed limits, never drive when intoxicated, and don't use your phone or text while driving. Nevertheless, there guy in the next car might be a speeding coke freak talking on the phone with his bookie. As you are waiting at a stoplight, Mr. Bad Citizen bumps your car from behind before speeding off in a haze of smoke. Bad luck! Damage to the rear bumper will set you back a couple of thousand dollars. Unfortunately, even if the police can locate the other driver, his car is stolen, and he has no insurance. Your own policy will cover only about half the damages. What to do?
Well, it depends. If your car is a new model, chances are you'll foot any out-of-pocket expenses to have it fixed. But what if you are driving a 1989 Chevy Cavalier with 187,000 miles on it? It hasn't been to the car wash since the turn of the century, goes through a quart of oil every month, and makes strange sounds when you accelerate. Nevertheless, its runs OK and could probably continue to do so for years to come. The obvious answer: donate the car, get a tax break, and use the insurance money as a down payment on a new car.
There are many places that accept vehicle donations, even if the vehicle is not running (they use it for parts). Often, free towing is available. Before you contact a vehicle donation center, make sure to gather up your car's registration and title information. Then, be prepared to answer a few simple questions about the car, including:
- Year
- Make/model
- Number of doors
- Color
- Mileage
- VIN
- Vehicle's condition
- Title information
- Vehicle's location
- Contact information
When you donate your car to a 501(c)(3) not-for-profit organization, tax deductions are fully available, depending of course on your individual circumstances. You should choose an organization that provides benefits to a cause that is important to you, such as helping disabled or ill individuals. There are many resources that provide guidance on different charitable organizations, so that you can ensure you are donating your car to a legitimate recipient.
Think of how happy you will be when you step into the new car dealership, down-payment in hand and a tax-deduction in your back-pocket, to pick out your shiny, safe new vehicle, knowing your old clunker is helping someone else to a better life. Sweet!
