Car Donation vs. Selling in Michigan: Which is the Better Option?
If you have an unwanted car sitting in your driveway, you might wonder whether you should donate or sell it. While both options have their benefits, the right choice depends on your financial goals, convenience, and desire to make an impact. Let’s explore the differences between donating your car and selling it in Michigan so you can decide which option is best for you.
1. The Convenience Factor
Selling Your Car
Selling a car requires effort, from listing it online or in classified ads to negotiating with potential buyers. You may need to meet with multiple people, handle paperwork, and ensure the car is in sellable condition. If your car needs repairs, you might have to invest in fixing it before you can find a buyer.
Donating Your Car
Donating your car is a hassle-free alternative. Vehicle donation programs like Cars Helping People, Volunteers of America Michigan’s official program, handle the entire process, from free vehicle pick-up to managing necessary paperwork. There’s no need to clean, repair, or advertise your car—just make the donation, and the charity takes care of the rest
2. Financial Benefits
Selling Your Car
When you sell your car, you get immediate cash in hand. However, the final selling price may be lower than expected, especially if the car is older or needs work. Private sales can take time, and if you trade it in at a dealership, the offer might not be as competitive as a private sale.
Donating Your Car
By donating your car to a qualifying charity, you can receive a tax deduction. The amount depends on the final sale price of your vehicle at auction or the fair market value if it is used directly by the charity. For more information on tax benefits, click here to learn more about the tax benefits of car donations.
3. Impact on the Community
Selling Your Car
When you sell your car, you gain financial benefit, but there’s no broader community impact. Once sold, your car’s future use depends on the buyer’s needs.
Donating Your Car
After the car donation service takes possession of the vehicle, they will auction it off to generate proceeds for your charity. This process can take anywhere from a few days to a few weeks. Once the sale has been completed, the car donation company will get the money over to the charity you selected. The charity should be able to con rm that the donation was received. After this, the car donation organization will prepare a tax receipt for you. This receipt is what you will need to earn a tax deduction for your donation, so be ure you retain it for when tax season rolls around.
4. Best Option for Older or Non-Running Cars
Selling Your Car
If your car is in poor condition, selling it might be difficult. Buyers often seek vehicles that are in good working order, and dealerships may not accept older or high-mileage cars.
Donating Your Car
Most charities accept cars in any condition, whether they are running or not. They will arrange for free towing, making it an easy way to dispose of an unwanted vehicle while supporting a good cause.
Which Option Is Right for You?
If you need immediate cash and have a vehicle in good condition, selling might be the right choice. However, if you prefer a hassle-free process, tax benefits, and the opportunity to give back to your community, donating your car is a great alternative.
Ready to Donate?
If you decide that car donation is the best choice, consider donating it to Volunteers of America Michigan through Cars Helping People. Your donation to Volunteers of America Michigan helps provide essential support to individuals and families in need, funding critical programs such as housing, food assistance, and job training.
Start your donation online or by calling 800-552-1515 and help make a difference in Michigan!