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Guide to selling or donating a used car

Guide to selling or donating a used car

Those with a car that isn’t being used and collecting dust in the garage can tackle this issue in two ways. They can sell the car or donate it to someone or an organization that could use it. Both decisions have pros and cons, so it is important to analyze all the information and make a choice accordingly. Here are the pros, cons, and what one needs to know about selling or donating a used car:

Pros of selling a used vehicle

Some of the positives of selling a used car include this:

  • Depending on the condition of the car and how well it was maintained over the years, it is possible to get the bluebook value of the car or even slightly below that.
  • One key benefit of selling one’s car online is the possibility of getting cash right away. This can be a significant advantage for anyone in need of immediate funds.
  • There is no need to go anywhere to sell the car. Thanks to the Internet, individuals can easily sell their cars from the comfort of their homes. All they have to do is upload good and accurate pictures of the vehicles and some videos for the buyer to see and confirm. Those who are selling their car can also discuss details over the phone or the Internet.
  • There is no particular time frame for selling the vehicle unless someone is in desperate need of some cash. One can easily take their time to go through as many buyers as needed to find the right one.
  • Another great thing is that one does not have to settle for a price. There are so many buyers in the market that one can take their time and sell their car to the right buyer.
  • Those who have customized their car and put some work into it can easily recover that cost by adding it to the selling price. The great thing is that sellers can quote a price that they think is fair without having to worry about showing receipts or anything.
  • The seller of the used car is in control of this sale and every step of the negotiation process, so this is a win-win situation for the seller.

Cons of selling a used vehicle

Here are a few reasons why one may not want to sell their used car:

  • If the seller of a used car needs money immediately, selling the car may not be the best option, as it is often a long process.
  • Before selling the used car, the seller will have to fill out the DMV paperwork, which can be overwhelming, especially if they do not like filling out paperwork.
  • When a sold car immediately breaks down after purchase, there are legal repercussions. The buyer is entitled to take this to court, and this can lead to trouble.
  • While it’s easy to connect with buyers, they may also take their time to make a decision. They might haggle a lot to bring down the price of the car because it is used.
  • The money that comes in after the sale of the vehicle is taxable money. This means that one will lose money with taxes, which defeats the purpose of getting some extra cash.
  • Meeting anyone online and making a deal with them could be dangerous. One will also have to arrange for meetings to meet the buyer, and it is difficult to do a background check on every person who wants to purchase the car.
  • Sellers have to be wary of scammers who try to contact them to offer any kind of deal. This is very common in online sell-and-buy markets, so always be vigilant and make an informed decision about the buyer when selling the car.
  • Sellers may have to post an online advertisement for their car, and depending on the type of advertisement, this can be both time-consuming and costly.

Reasons to donate a used car

After a seller has weighed the pros and cons of selling their car, they can now look at the reasons for donating a used car to a person or a charity. Here’s what to know:

  • There are vetted drivers who meet the donor at a place that is convenient for them and tow the car with them to the charity.
  • The pick-up of this used car is free, so the donor does not have to pay anything.
  • When one chooses to donate a car, one is doing a good deed and making a smart financial move. If the car is valued at less than $500, one can claim the fair market value up to $500. For cars over $500, one can claim the exact sale price amount, potentially saving one from income tax liabilities.
  • The paperwork is mostly taken care of for the donor, as opposed to when they sell the car and have to fill in the DMV details.

Many charities can benefit from this donation, which can help them carry out their work easily in the area. So, if one does not need immediate cash from the used car, one can consider donating the vehicle to a cause one cares deeply about.

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