Do you have a car that just refuses to work and has been declared by a mechanic that it isn't worth fixing? If you are still trying to figure out what to do with it, there are plenty of ways to make extra money off of your clunker, even in its inoperable state.
Sell the Vehicle
1. Selling your vehicle is the first and most utilized option when trying to get rid of a junk car. You can begin by placing ads in the classifieds section of your local newspaper or online through websites such as Craigslist.org in order to reach a wide audience of potential buyers. When listing your vehicle for sale, be honest about the vehicle's condition. If you choose to sell online, take a sufficient amount of pictures for potential buyers to make an accurate judgment of your vehicle and its worth.
It is important to understand that, given the condition of your car, you will not recoup the fair market value for your car. Factors such as age, mileage, extent of repair needed and overall exterior condition will greatly determine how much money can be made from selling your junk car. Do not overlook these factors when pricing your vehicle.
Recycle the Car
2. The scrap metal industry is huge. You can take your car to the local junkyard and receive cash instantly. Because the scrap metal industry is not in the business of rebuilding your car, any hopes of receiving thousands of dollars for your vehicle should be avoided. Instead, your car will most likely be stripped of its parts and only usable material will garner you a higher price for your vehicle.
Donate to a Charity
3. There are several vehicle donation programs, run by charitable organizations that will accept your junk vehicle. Fortunately for you, donating your car to these types of institutions can also lead to a tax write-off. According to Getridofthings.com, when donating a car to charity, ensure that the organization is a qualified 501 (c)(3) to claim it as a tax deduction.
Car donations greater than $250 can be easily acknowledged as donations, while a donation greater than $500 requires you to fill out Section A of the IRS Tax Form 8283. Donations greater than $5,000 call for filling of Section B of form 8283 and a signature of a charity official to verify that you donated your car.
Special thanks to Yasmine Fuller for this great article.