One of the benefits of giving a used car to charity is the tax break you will receive. If the car is worth more than $500, you can deduct the fair market value of the car – this is either what the charity is able to resell the car for, or its current market value. If you are donating a true “rust bucket”, you will likely be happy to know that your car is going to help support a worthy charity. You might want to take extra care when donating vehicles that are newer and worth more.

Before donating a more recent car, it is a good idea to get an appraisal, especially if the car is worth more than $5,000. Although it will not be a guarantee of what the resale price of the car will be, it will give you a better estimate than if you just rely on something like the Kelley Blue Book price. This will give you confidence when you receive the final paperwork on the fair market value of your car that you are getting a fair value.

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