Cash For Junk Car

Millions of junk cars leave America's roadways each year. Some are abandoned at the roadside, but most junk cars end up being sold to salvage yards or donated to charity.

There are two ways to approach junk car removal. Junk cars with American pedigrees, and almost no parts worth being recycled, are worth little more than the several hundred dollars of cash that you might receive for the scrap metal. If your car is truly junk, then you should consider charitable donation.

Charities offer free car removal, provide a tax deduction, and generally take care of a problem while making us feel good about ourselves (your unsightly car is removed from the driveway at no cost, and you get to feel good about contributing to a good cause).

Though you should always consult a CPA on tax issues, the rule of thumb for car donations is that you get a $500 federal tax deduction. Most often that translates into a few hundred dollars in tax savings for you, while your chosen charity can generate one or two hundred dollars for their cause.

On the other hand, if you have an American car with reusable tires, upholstery, or best of all, a transmission, you should sell your car. By the same token, if you have an imported car that includes a handful of reusable and expensive spare parts, you can most likely sell your junk car for far more than the federally mandated $500 value, and should try to generate the most cash for your car as possible.

If you have an old Toyota or BMW, chances are that its spare parts are worth at least two or three times the $500 tax deduction limit that most charitable car donations are limited to. In these cases, you are likely able to get far more cash for your junk car by simply selling it to a used parts or salvage dealer. If you're still dedicated to supporting a charity, simply donate the cash you receive for your junk car.