Ever wondered about how to get rid of a junk car? While driving around your neighborhood, you might have seen a car abandoned on your street or in someone’s yard. This may beg the question: how will you remove your car when it reaches the end of its service life or if it becomes irreparable?
When it comes to junk car removal, you have two options to choose from – you can either sell or donate the car. If you plan to sell the car, you should aim at receiving the highest payout (cash for car). If you donate it, you should get the maximum possible tax cuts.
Learn more about the two junk car removal options in this guide.
Junk Car Selling
As your unwanted vehicle will be stripped off working parts and scrap metal at the auto wrecker yard, you may wonder if junk car selling is the best option for you. If you want, you can learn more about selling your junk car.
Read on to find out the pros and cons associated with selling a clunker.
Pros of Junk Car Selling
Selling your junk car can deliver many incredible advantages. Some of the top advantages include:
1. Free Car Removal
One of the biggest perks of selling your junk car is that you won’t incur any expenses while getting rid of your unwanted car. Your junk car removal company will do all the heavy lifting and towing of your vehicle at no cost. This will save you the trouble of transporting the vehicle out of your property yourself.
2. Get Paid for Your Clunker
Are you in dire need of some extra cash? Selling your junk car to an auto wrecker is not only free but also offers you the chance to make some money. The amount you are offered will depend on the general condition of your car and its components.
If you plan to buy another car after selling off your junk car, consult our car buying guide.
3. Support Scrap Metal Recycling and Used Auto Parts Businesses
The scrap metal industry is always on demand for junk cars. The same goes for the used auto parts market. When you sell your car to an auto wrecker, the working parts will be removed, inspected, and cleaned for reuse.
Scrap metal, on the other hand, will be sold to scrap metal dealers for recycling.
4. Allows You to Reclaim Your Space
Not only do junk cars make your yard look unsightly but they can also waste precious space if kept in the garage or shed. Imagine what you could do with the extra space created once you sell the old clunker!
Cons of Selling Your Junk Car
If you intend to sell your junk car, expect to face a number of drawbacks. Take a look at some of those drawbacks below:
1. Taxation on Your Junk Car
Although junk vehicles seem worthless, they always incur taxes once sold. When you decide to sell the junk vehicle, this transaction will be recognized by the government and will reflect in your tax returns the coming year.
2. You Forfeit the Option of Donating
Donating your car to a charity is a noble thing to do. By deciding to sell the junk vehicle, you will be forfeiting the option of donating it. The monies you receive from the sale of your car won’t help the community in any way.
Junk Car Donation
Donating your junk car to charity is another viable option. Like selling junk cars, making donations also comes with an array of goodies and disadvantages.
Pros of Junk Car Donation
Like junk car selling, donating your unwanted car to charity also delivers a number of benefits. Some of those benefits are highlighted below:
1. No Towing and Junking Costs Incurred
When donating your junk car to charity, you don’t have to pay for car removal services such as towing and junking. The charity organization you are donating to will arrange for pick-up and junking of the vehicle for free, no matter its location.
2. Reduced Tax Obligations
One of the benefits of donating your junk vehicle is that you will receive a tax deduction when you are filing your tax returns.
Once your vehicle is sold and auctioned or recycled, the charity will send you a receipt of the amount to get back your taxes in the coming year. This differs from junk car selling where you incur tax amounts.
Under current IRS rules, there are specific conditions under which you can get a tax deduction on your donated car. If your car sells for less than the actual market value, you will still get the standard $500 tax deduction.
However, if the vehicle was sold for more than $500, you can claim the full amount. How cool is that?
3. Presents the Perfect Opportunity to Help Others
Donating your junk car presents the perfect opportunity to help a charitable cause. Once your car is sold, the proceeds realized go towards helping different members of the community in need. This includes veterans, orphans, and many more.
4. Saves You Both Time and Money
When you donate your junk car, you can potentially save a lot of time and money. You don’t have to spend time researching the auto wrecker that can offer the highest payout for your vehicle.
You also don’t have to take the car to a mechanic to assess its condition so you don’t get ripped off when you sell it. This will save you both time and money.
5. Allows You to Get Back Your Space
Like junk car selling, donating your clunker also allows you to reclaim your functional space. Once your clunker is hauled away, you can put the space where it was stored into better use.
Cons of Junk Car Donation
As already pointed out, donating your car to charity is an act of kindness. Perhaps the only limitation of junk car donation is that you will forfeit the opportunity to get some cash for your car.
Junk Car Removal via Selling or Donation: Which Is Best for You?
While you won’t get any direct financial benefits by donating your junk vehicle to charity, you will feel a great sense of satisfaction from helping a charitable cause. But if you want to get some cash, say so you can buy a new car, selling your clunker car may be the best junk car removal option for you.
Are you aware that anyone can make money from selling cars? Check out our blog to find out how.