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Automobiles donated to charities, they may be headed straight to a junk yard

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  • Automobiles donated to charities, they may be headed straight to a junk yard

    This is what might really happen to your donated car - MarketWatch
    sigpic
    In the middle of MinneSTUDEa.

  • #2
    No real surprises there. I have seen numerous cars that looked really nice sitting in a pull your part yard. Most have some electronic problem that the average person (and many professional mechanics) can't correct. Our old Studebakers are much easier to keep running.
    "In the heart of Arkansas."
    Searcy, Arkansas
    1952 Commander 2 door. Really fine 259.
    1952 2R pickup

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    • #3
      Some of the information in that article is misleading, Brent. You can no longer "just tell your accountant what it was worth and write off that amount as a donation."

      That IRS tax scam ended several years ago, and rightfully so.

      Rather, the charity must now report to you how much they received for the vehicle, regardless of how it was disposed of, and that's the amount you get to claim. That's only right, because too many people were claiming vehicles were worth 'way more than they were. BP
      We've got to quit saying, "How stupid can you be?" Too many people are taking it as a challenge.

      Ayn Rand:
      "You can avoid reality, but you cannot avoid the consequences of avoiding reality."

      G. K. Chesterton: This triangle of truisms, of father, mother, and child, cannot be destroyed; it can only destroy those civilizations which disregard it.

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      • #4
        Originally posted by BobPalma View Post
        Some of the information in that article is misleading, Brent. You can no longer "just tell your accountant what it was worth and write off that amount as a donation."

        That IRS tax scam ended several years ago, and rightfully so.

        Rather, the charity must now report to you how much they received for the vehicle, regardless of how it was disposed of, and that's the amount you get to claim. That's only right, because too many people were claiming vehicles were worth 'way more than they were. BP
        Thank you Bob for the correction. It is a shame and injustice that some writers of news articles give us false information (fake news).
        sigpic
        In the middle of MinneSTUDEa.

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        • #5
          Originally posted by BobPalma View Post
          Some of the information in that article is misleading, Brent. You can no longer "just tell your accountant what it was worth and write off that amount as a donation."

          That IRS tax scam ended several years ago, and rightfully so.

          Rather, the charity must now report to you how much they received for the vehicle, regardless of how it was disposed of, and that's the amount you get to claim. That's only right, because too many people were claiming vehicles were worth 'way more than they were. BP
          Many years ago, the local Rescue Mission openly campaigned for donated cars on that very premise- donate your used up heap and use full book retail for tax deduction purposes. Many guys would buy later model dead horses at the dealer-only auctions and donate them directly, and not have to lift a finger (RM would have them picked up). It was a simple matter of printing off the NADA value page at time of donation and handing them off to their accountant. Some guys did dozens a year. All they did was take advantage of tax law wording, like anybody does to this day, for the same reason, to mitigate punishing tax bills at the end of the year; the same reason businesses buy most of their new equipment at year end: to soften some of the punishment you get for being successful. I wonder if they still donate to the RM.

          On the other side, charities did, and I think still do, sell better donated vehicles at auction. 90% of them are Memaw's car who recently passed away, almost always the same profile- 20-30 year old generic sedan with very low miles, usually in the most unappealing colors and options list. The battery is shot from sitting, but they run with a jumpstart; the interior is like brand new, but the body has rust, mostly from sitting; and the brakes are scratchy from rusty rotors and sticking calipers. People buy them as first cars for a teenager, and they either destroy them in short order or reject them outright. Such is the life of the donated vehicle.
          Proud NON-CASO

          I do not prize the word "cheap." It is not a badge of honor...it is a symbol of despair. ~ William McKinley

          If it is decreed that I should go down, then let me go down linked with the truth - let me die in the advocacy of what is just and right.- Lincoln

          GOD BLESS AMERICA

          Ephesians 6:10-17
          Romans 15:13
          Deuteronomy 31:6
          Proverbs 28:1

          Illegitimi non carborundum

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          • #6
            Our local Union Gospel Mission has made it into a large used car lot on a major arterial. About half the donated cars are worth being cleaned, repaired and sold at retail by those living at the Mission and trying to get off the streets. Some are retained as parts cars and some are too far gone and are scrapped. They currently have more than fifty for sale.



            No real surprises there. I have seen numerous cars that looked really nice sitting in a pull your part yard. Most have some electronic problem that the average person (and many professional mechanics) can't correct. Our old Studebakers are much easier to keep running.
            For true. And some are old enough and not in high enough demand to invest any cash in repairs. I recently saw a twenty-year-old Saab 9-5 with perfect interior, exterior and four decent tires on it. Not a single part had been pulled off it, while every Honda is stripped to bones.

            jack vines
            PackardV8

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            • #7
              Originally posted by PackardV8 View Post
              Our local Union Gospel Mission has made it into a large used car lot on a major arterial. About half the donated cars are worth being cleaned, repaired and sold at retail by those living at the Mission and trying to get off the streets. Some are retained as parts cars and some are too far gone and are scrapped. They currently have more than fifty for sale.

              jack vines
              That's great to hear. This is a fine example of what should be done with donated vehicles, IMO.

              Whirling dervish of misinformation.

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              • #8
                The experience that an old friend had after a donation made me sit up and take notice. In between the non-running junker and the grandma's garage kept jewel, is the running and drivable car that simply has very little value. My friend an old Korean War vet had an early 90's, high mileage, Ford Crown Victoria. The car had very little value, and having the strong feeling for the cause, he donated the car to the "Disabled American Veterans." Within several months of the donation he began to get parking tickets and notifications of moving violations. The violations continued to pile up for over the better part of a year. My friend who is, and was, in his late 80's, paid off the tickets rather then have to fight for his rights.

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                • #9
                  Originally posted by Hallabutt View Post
                  The experience that an old friend had after a donation made me sit up and take notice. In between the non-running junker and the grandma's garage kept jewel, is the running and drivable car that simply has very little value. My friend an old Korean War vet had an early 90's, high mileage, Ford Crown Victoria. The car had very little value, and having the strong feeling for the cause, he donated the car to the "Disabled American Veterans." Within several months of the donation he began to get parking tickets and notifications of moving violations. The violations continued to pile up for over the better part of a year. My friend who is, and was, in his late 80's, paid off the tickets rather then have to fight for his rights.
                  Did he forget to send in his "release of liability" to the DMV? He just had to do that to no longer be responsible for the car. I've had that happen to me, but send them a copy of the release form and it stopped.

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                  • #10
                    Did he forget to send in his "release of liability" to the DMV? He just had to do that to no longer be responsible for the car. I've had that happen to me, but send them a copy of the release form and it stopped.

                    I spoke to my nephew who was closer to the situation and understands the process better then I did. He said that at the end of the process that the car was impounded. You may be correct that the release was not sent.

                    As my nephew informed me, the charity sometimes smoozes the car owner into thinking that they will handle all of the paperwork. The charity which may be in another state or across the country processes the paperwork and contacts a local hulk hauler, who pays a fee to the charity and is dispatched to pick up the car. At that point the hulk hauler is obliged to take the car directly to the scrapper. The hulk hauler is licensed, for one purpose, to haul cars to be scrapped. He can't resell the car for anything but scrap. A release of ownership is not required at this point, because the car is to be scrapped. The problem is that not all hulk haulers follow the rules. They sell a running driving car outside of the channels required by law. The purchaser, equally unscrupulously, fails to transfer title, and continues to drive on the unexpired license, until either he is caught, or the car is impounded. Another friend who is a hulk hauler told me that this subversion of hulks goes on all the time, but great care has to be taken as to how and to whom a car is sold. The problem is that some hulk haulers are just sloppy, and greedy.

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