Getting rid of a car isn't as easy as it might seem. Why do you think used car sales people look like they're a hairsbreadth from jumping off a bridge? Sure, you can take 25% off the Kelly Blue Book quote for your car and eat the loss, but wouldn't you rather have that extra money to get that next generation coup you've been pining over from last week's Auto Trader? Or how about offsetting your income tax by donating your car to a local charity or high school? This guide exists to help you figure out the best way to get rid of your car and how to get the most out of that decision.
There are a lot of different ways to get rid of a car, but how you choose to get rid of your car depends on your financial circumstances and the overall condition of the car. If you're running out of cash and the car needs some repairs you can't afford, you may be looking for a charitable organization that takes cars, or maybe even a scrap yard if the car is in really bad shape. If, however, you have a little extra time and your car is in relatively good condition, you should consider selling it or trading it in for a new(er) vehicle. Let's start by assuming you'd like to sell your car to a private party.
Selling a Used Car
Check print and online classifieds to see what other people are offering for your vehicle if you want to get rid of a car fast. You're going to have to balance how much you want to recoup on your investment and the price it will take to undercut your competition. As a rule, think about pricing your vehicle about $500-$750 over the dollar amount you actually want for the vehicle. With a $750 premium over your desired price, people are more likely to talk you down in $250 increments, or simply slash the $750 off the original price.
First impressions are uber-important if you want to get rid of a car fast. So, make that car presentable. Washing and waxing your car will improve luster of the paint and help to remove small scratches. If you have a weekend free, sprinkle baking soda on the upholstery/carpeting when you get home from work, and vacuum it up on Sunday afternoon. Clean all brake dust from the wheels, wash your windows with Windex, soak the ashtrays (if they've been used) in baking soda and dish detergent, and finish off the rest of the interior with a non-scented all-purpose cleaner. And polish up those chrome tailpipes.
If you really want to improve your chances of getting rid of a car, get all of the basic maintenance done before advertising it. Basic maintanence would include an oil change, new trasmission fluid, tire rotations and pressure checks, and the topping off of all fluids. Before you do any of this you may want to get a free inspection done at your dealership to help pinpoint any small things you may be able to fix yourself. After all is said and done, order a Carfax report to have available for potential buyers.
Clear, honest, advertising will get rid of a car more quickly, and will often get you the price you want. Carpeting the advertising spaces available to you will help sell a car quickly. Such spaces include online classifieds (cars.com & edmunds.com), newspaper classifieds, weekly car shopping rags (car trader), cork boards in public places, and the windshield of your car. Phrases that catch a prospective buyer's attention are OBO and Must Sell. Be sure to include "single owner" in your ad if you've been the only owner--buyers like that.
Don't be a used car salesperson if you want to get rid of your car. The buyers you're courting are probably looking for private buyers because they're trying to avoid salespeople. The trick to selling a car at the price you want is to be secure with the price you're asking. If you're not sure your car is worth what you're asking, people will smell it on you--just like dogs smell fear. When you're bargaining, try to give the buyer some space. If they want $250 off the price, act like you have to ask someone inside if that's okay, and excuse yourself from the conversation. Taking very small breaks allows you and your buyer to think things through before making any decisions.
Charity Car Donation = Big Tax Write Off
Donating your car to charity is both an economically responsible and socially conscious way to get rid of your car, but before you do so, there are some things you should consider:
- Make sure the charity you're considering is a qualified 501 (c)(3) organization, otherwise you may not be able to claim a tax deduction for donating your car.
- Determine the true value of your car by honestly blue booking your car and subtracting repair estimates from the total value. Use common sense when determing the value of your car if you wish to avoid a lengthy auditing process.
- The total deduction cannot exceed 50% of your gross income, which is the total amount of money you've made before taxes.
- Greater values for donated cars mean more paper work:
- A car donation greater than $250 only needs a slip from the charity acknowledging your donation.
- A car donation greater than $500 requires that you fill out Section A of the IRS Tax Form 8283.
- A car donation greater than $5,000 requires Section B of form 8283 to be filled out accompanied by an official appraisal of your car and a signature from a charity official verifying that you did indeed donate your car.
- Laws regarding the transfer of a car's title are different for each state and their respective charities. The charity you're donating your car to should have the applicable laws on hand to help streamline the donation process.
- Check out the IRS's "A Guide to Car Donations" for more info.
