Car Donation vs. Sell Your Car NZ

August 14, 2018 by Ranjeet Singh | Comments: no responses | Categories : Automotive | Tags :

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It is undeniably true that car is a highly useful asset for everyone. But at some point of time it reaches past its expiration date due to various reasons. It could be extremely damaging or otherwise require insanely expensive repairs.

Once you realise the fact that your used vehicle is not worth driving anymore, you will want to sell it ASAP. There are a few options that you can consider at this point. It includes donating your car for a tax credit or selling it to cash for used cars.

However, these options have their own merits and demerits so it is important to do your homework before choosing an option.

Donating car or sell it for cash: What is better for you?

Selling a used or old car is a big decision, which requires a lot of preparation. When you plan to scrap your old car there are mainly two easy choices: junking it or donating it to charity. So, it is essential to understand the pros and cons of both the options to make a smart decision. Free car valuation should be offered in both cases though.

Car donation to Charity Organisations  

When you decide to donate your old or junk car to charity, you will find different types of nonprofit organizations or charities. Some of them will accept your vehicle in any kind of damaged state. While others take only those automobiles that are in a good shape and running great. So, if your vehicle is not working due to any accidental or mechanical problems, make sure to find charity which takes junk cars. This could be highly beneficial for you as you will get a tax credit. However, you must follow stringent IRS regulations in order to claim a tax deduction. They are:

  • You must have the proper documents to get your tax exemption. As you will need to show that you have donated your vehicle and received a deduction of around $250. You must arrange the paperwork in a file so you can show them as proof to the IRS.
  • Make sure to do your research to determine your old car worth. You can use online car valuation tools. This way you can find out its fair value in the market and decide whether to donate it or sell it. If it is a scrap vehicle, you cannot expect much.
  • You should also maintain a detailed record of your tax deduction in your tax form. Just remember that the total deduction you receive must not equal to or exceed a fraction of your adjusted gross income.
  • Before you make a donation to an organisation make sure to verify that it is a certified charity. Generally, most of the charitable institutes operate under certain acts.

They mainly focus on using donated vehicles for help-based and educational programs. You can also depend on many religious organisations but make sure to confirm with the IRS.

Where can you donate your car in NZ?

When you look forward to donate your automobile, make sure to find a reputable charitable organisation in your area.  You can find the best place depending on where you live and what condition your vehicle is.

Other than this, you should also make sure to get free removal on donating your vehicle. Though all institutions will give you same amount of deduction for tax write off. Here are a few places where you consider donating your junk or damaged vehicle: Donate it to the Salvation Army or Givealittle.

If you think of donating your auto to these organisation make or any other popular charity. Make sure to consider all the important factors. It includes whether the charity offer free removal service or they hire third party to collect donated automobiles. If they use third party, you may have to pay administration fees or tow away the automobile yourself.

Sell your car for cash NZ

If your automobile is damaged with a major or permanent issues, junking it is a quick and simple solution. Although it won’t get you a deduction in tax but you will enjoy benefits in financial sense.

Just make sure to select a renowned company that guarantees to offer best cash and rapid pick up from your place. Here are some other advantages that you will get by scrapping your old vehicle:

  • No need to pay money out your pocket for towing the vehicle to Cash for Car NZ firm. As they will visit your home, business place or any other area where the unwanted automobile is sitting. There will be no troubles, no fees and no stress regarding the removal process. Their team will safely tow away your vehicle for free. This is definitely a plus point of choosing to scrap your vehicle for cash than donating it.
  • Getting your wrecked or rusting vehicle removed by a professional cash for company help the environment. This means it is a pollution free way of reducing toxic emission producing vehicles from this planet earth. Cash for car companies, mainly operates to help the environment and follow environmental friendly protocols to take off undesirable automobiles.

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