The truth of the matter is that your old car isn’t going to help you much. It has served you well over the years. What is left is to determine the best way to get your ca to its resting place. So, if you have been wondering if you should sell, junk or donate it, what should you do?
This article is going to help you make a noble decision and answer this question by explaining both the pros and cons of selling and donating your old car. So, before you make up your mind, let us examine both selling, scaping, and donating.
Deciding Whether Or Not You Should Fix Your Car
If you have an old car that needs repair, you need to decide if it is worth spending money on. A car is not worth repairing if it costs 50% of the car’s value. For instance, if your car is worth $2000 and repairs cost $1500, then it is not worth fixing. However, you can fix it if the repair cost is less than 5%. When you have an old car in your yard, it can be challenging to get rid of it. Many techniques of car scraping leave you spending on the removal with no benefits.
Pros and Cons of Donating Your Old Car
Apart from scraping your car, another option to consider is to donate your car. There are a couple of benefits to donating your car to a charity. Here are several benefits of car donation:
When you donate your car, you do not need to pay for towing. Veterans’ vehicles will come and collect your car for free anywhere it is. While junk purchasers may offer you some money for the scrap, you will still incur transportation cost to the scrap yard.
Possible Tax Deduction
You are entitled to some tax deduction when you donate your car to the charity. Once your car is recycled or sold at an auction, you will receive a receipt showing the amount you can subtract from your taxes the following year. For instance, if you sell your car for less than $1000, you can request for the market value of up to $1000. For cars that sell more than $1000, you can request the exact amount you sold your car for.
The Best Way to Dispose of Any Car
Many people fear to donate their cars because of either body or rust damage, or longer runs. But in many instances, you can donate your car in any condition. In fact, when it comes to donation, you can give away any type of car.
Scrap cars usually take up too much space, and because they no longer run, it is almost impossible to move them once you have parked them somewhere. Imagine you have an old car in your garage, it could save up a lot of space once it is gone. If you have parked your car in the yard, you can donate it and leave space to mow your lawn.
It Is Not Worth It to Trade in Your Car
Trading-in your car is not the same as selling it- it is rather disappointing and will not give you the return that you truly deserve. Many dealers usually pay 80% of the book value and sometimes the value may go as low as 50%.
Pros and Cons of Selling and Scraping Your Old Car
If you sell your car directly to a buyer, you cut out middlemen, thus you get the actual market value for your car. You can make profits in hundreds or thousands of dollars. From a financial angle, it can be beneficial if you sell your car to a private individual. Dealers rarely buy older cars, and for this reason, they usually earn less profit when traded in. selling to an individual can help you get a great deal that is close to the market value of the older car.
You Have Control Over The Selling Process
While selling a car directly to a person may take a lot of time and energy, the best thing is that you control the purchasing process- from start to finish. If you are not happy with a certain offer, you can simply reject it and move on to the next bid. However, if you keep on getting lower bids, you can do a few repairs on the car to upgrade its value. You get to decide what you want to do with your car.
Cons of Selling and Scraping Your Car
It Takes Longer to Sell a Car
A car sale rarely occurs overnight and it is not easy to know when the next bid will come your way. If you want to make money quickly from a car sale, then this is not the best strategy.
Takes Time and Effort
Before you sell your car or take it to the best junkyard in your area, you must take its photos, look for potential buyers and meet them, and discuss offers. Expect to invest time in maneuvering all aspects of a car sale. The best thing is that you may sell your car for more profit than trading it in. However, time is money. It may not be worth it if you spend several months orchestrating the transaction.
Safety Concerns May Arise
With a car sale, you will be putting yourself in a compromising situation with someone you do not know. However, you can take a couple of steps to reduce your safety risk such as meeting with your client in public. Still, there are some situations where the selling process will be hard for you to finesse. For instance, any potential buyer has the right to demand a test drive. Being in the car during such a time puts you in a tricky position, but again, if you are not in the car, someone may disappear with your car.
This is may happen to you, especially if you are not protected by an escrow service, but only to a certain degree. Remember, counterfeit individuals can create scam escrow services. So, you need to be very careful.
In addition, in the process of transferring log books and service data, you may mistakenly share your personal information that could easily be used against your consent, and you may end up becoming a victim of identity theft. You can reduce such risks by using a market to protect personal data such as phone numbers and credit card numbers when sharing your service records to a buyer.
If you have gotten to the point where you are wondering, “Should I sell, scrap or donate my car?” Check out the advantages and disadvantages of each and choose which is better for you at the moment.