Organizations that want used car donations are always looking for old vehicles and most will come by your home to pick up the used car. A for-profit company will tow your vehicle away and will either fix the car for resale or will salvage the car for parts. Many times a charity will want used car donations delivered to them, saving them money in towing.

The benefit of used car donations programs is that the company will pick up your vehicle and tow it away for free. Some companies may even offer to pay a small amount for your clunker.

Maybe you have other vehicles that you are no longer using and wish to remove from your property. Companies and charitable organizations that deal in used car donations will accept used fifth wheels, campers, recreational vehicles (RVs), boats, motorcycles, scooters, mini-buses, trucks and even airplanes. Because the operators of the used car donations programs will come to your property and pick-up the used vehicle, it is a quick and relatively painless procedure to remove the vehicle from your home. Most organizations accept all types of vehicles in any condition of disrepair and inoperability. These companies make profit by fixing and reselling the clunkers. However, older makes and models of cars may be scrapped and sold for parts, especially ones that are difficult to find or no longer manufactured.

Charitable organizations accepting used car donations will accept old vehicles and will then sell them to auto auction houses. The money received for the vehicle is then used by the charitable organization. Some of the used vehicles are still operable and in fairly good shape. These vehicles may be sold or given to people with financial difficulties.

To take advantage of the tax benefits of donating your vehicle, you may want to look on the Internet for non-profit used car donations organization. The charitable organization may opt to use the vehicle to enhance the charitable program by giving it to a worthy recipient or will use the auto for business purposes. To ensure that you get the proper tax credit, you must ask the organization what the intended use is for the used vehicle. You may be able write off the value of the donation if the charity plans to use it (rather than sell it). Should the charity decide to sell it at auction or for scrap then only gross sales price can be claimed for tax purposes. The charity has thirty days after sale to notify you of the sales price. It is your responsibility to verify that the chosen charity is registered with Internal Revenue Service (IRS) as a qualified charity. Check with Kelly’s Blue Book or another used car buying guide to find the market value of your used automobile.

After your vehicle has been removed and the paperwork complete, make sure that you place all the paperwork in safe and secure location in the case of a tax audit.