Car Transport — Used Car Donation
One interesting recent development in the car transport industry has been the used car charity donation auction companies. They act as a middle man between the donor and the charitable organization.
An interesting sideline business in the car transport industry is the used car donation company. The car transport industry is involved with this business because the donor can simply elect to donate the car to charity and the company does the rest. Although it is possible to drop a donated car off at the charity auction terminal, the company will also pick up the vehicle and bring it there. Unlike normal car transport, both running and non-running vehicles are acceptable.
The donor benefits because cars donated to charity are tax deductions. By using the car transport donation service, the donor does not have to worry about much more than the decision to part with the vehicle. The company can handle virtually every other detail. The important thing is the DMV record keeping that must be done to insure that clear title to the car is being transferred. The transport company can arrange the proper paperwork allowing the donor to receive the records needed to claim the deductions.
Tax deductions operate under a complex set of confusing rules and it is important that the donor be aware of their own tax situation. For example, the deduction is of no value if deductions are not itemized. It is also recommended that the donor consult his own tax professional prior to making the donation to insure that they qualify for deduction. The donor also has the chance to designate the charity that is to benefit from the donation. They are also able to select a charity from the transport companies lists.
Although it is often though the car itself is given to the charity, this is usually not the case. The car is sold in an auction and the proceeds, in cash, or received by the charity. Although the donor can usually claim the fair market value of the vehicle on his tax deduction, the actual sale price might be much lower. The transport company also keeps as much as 50% of the sale price for administrative costs. The best companies sell the cars in auctions that are open to the public. This system draws multiple bidders and results in higher prices than dealer only auctions.
Another advantage of the open public auction is that everything is very open and therefore reliable. The presence of multiple bidders and the open nature of the auctions prevent any shady dealings that keep most of the sale price out of the hands of the intended charities. Even without the tax deduction incentive, the donation of used cars to benefit charity is a good way to support these non-profit groups. In many cases, the trouble of selling the automobile privately is more troublesome and time consuming. The car transport donation service makes that used car go away, and the charities benefit.