What happens to vehicles that are donated to charities?

Question

How does it work?

Is it sold to used car dealers? Used by charity members to do charity work? What happenes to these vehicles after they take it away?

Answer 1

They sell most of them to a wholesaler. The wholesaler might handle the whole thing and send the charity the profit after their cut. Charities aren't set up to sell cars or boats and are just glad to get any money at all.
If you want to help the charity sell the car and donate the cash they will get much more.
After the car is sold you will get receipt for your taxes based on what they sold it for so if they use it instead you don't get a tax deduction.

Answer 2

It really depends on the organization. Sometimes the cars are sold directly from that group through an auction or sale where the proceeds benefit the charity. Sometimes, they actually use the cars within the scope of their everyday functions as a delivery car or shuttle. So to my knowledge they are generally used for businees use or sold for value towards the charity group.

Answer 3

Occasionally they are used by the organization, but usually they are sold at used car auctions.

Answer 4

The charitys, Red Cross, United Way, and many others., havent received the message but that the federal government goes to care for their demands, we werent doing an excessively well activity it appears

Answer 5

they auction them off. new IRS rules only allow the person donating to deduct the actual amount they are sold for vs the estimated value you used to be able to deduct