Donating Junk Cars

Some vehicle owners that call us (for example) to junk a car in Barberton, Coventry Township or the Portage Lakes inquire about vehicle donation. The current auto scrap prices are as low as they have been in years. The price for a damaged car and what you can expect to get for selling an old car are certainly disappointing. We want to review the process & potential pitfalls associated with the donation. A story posted by Melanie Parker in thenewsenterprise.com on September 12, 2015 is titled ‘Focus on Finance: Donating a car to charity’, which had these details: “Some of us may find ourselves with an older car that will offer very little gain as far as trade-in value. Or maybe one that doesn’t run but still could be put to good use. Many organizations accept donated vehicles. A charity that uses a donated vehicle themselves obviously benefits directly from a donation. In some cases donated cars are sold, either by the charity or by a dealer to raise money, which also is a win. If interested, you can even use the donation as a tax deduction. Just make sure you handle the paperwork properly.

Tips for to donating a car to charity:

• To receive the maximum tax deduction on your car donation, and to receive the satisfaction that the full value of the car benefits a charitable purpose, give it to a charity that will use the vehicle in its operations or will give it to a person in need. Otherwise, your tax deduction will not be based on the fair market value, but will be limited to the amount of $ the charity gets from the sale. If the charity you are donating to sells it, ask what percentage of the proceeds they receive.
• If possible, drive the vehicle to the charity instead of using a towing service. This allows the charity to keep the full amount of any proceeds from selling the car. Make sure the charity is eligible to receive tax deductible contributions via the organization’s IRS letter of determination which verifies its tax exempt status. Be sure you get a receipt.
• Non-cash donations are a common trigger to an IRS audit, so document it and keep records
• If the car is worth more than $500, you must complete IRS Form 8283. Donors are required to file a written acknowledgment from the charity. If the charity sells it, they must provide the donor with a certification the car was sold at “arms-length” between unrelated parties & the sale price of the car within 30 days. In this case, the donor’s tax deductions are limited to the sum of the sale price. If the charity doesn’t sell the car, it must provide you with a receipt in 30 days.
• If the car is worth $5,000 or more, an independent appraisal is necessary. The donor also must fill out Section B of IRS Form 8283. For cars worth less than $5,000, use the Kelley Blue Book, or a guide from the NADA to determine the market value. Make sure you use the correct figure for the date, mileage, and condition of your car.
• Take pictures of the car and save receipts for new tires or other upgrades to verify its value.

Remember, it is the donor, not the charity, who is obligated to value the car and who will pay penalties if an IRS challenge finds your figure inaccurate.” The complete article is available at this link.

Barberton Junk Cars is not involved in auto donation. We pay cash for cars throughout Summit, Portage and Medina counties. The first step in selling an old car to BJC is to obtain a price for a damaged car, which we refer to as a “junk car quote”. To junk a car in Barberton, Clinton or Monroe Falls simply contact our scrap car buyer at (330) 732-JUNK. If you agree to accept the price for a damaged car or junk vehicle and wish to proceed with selling an old car to us, we will promptly schedule a tow driver to meet you. Keep in mind that the title for the vehicle must be in your name to scrap a car for cash. This title requirement is a state law (Ohio) and this is why regardless of whether you seek to junk a car in Barberton, Medina or Green that this applies. Please note that property owners who have an abandoned or unwanted car, truck or van residing on their property are unable to have a junk car buyer or scrap car hauler retrieve the vehicle since the property owner is not the title holder. In this instance we recommend that property owners visit http://codes.ohio.gov/orc/4505 and review the Certificate of Motor Vehicle Law for guidance. Do you have questions related to scrapping a car for cash, junking a vehicle or selling a car for scrap? We encourage those selling a junk car to call us or visit https://www.barbertonjunkcars.com for additional junk my car related inquiries.