Have an old hunk of junk or clunker of a car? Thinking of getting rid of it but not sure how? Maybe it was a side project you never had time to work on or an old unused car that is taking up too much space in your garage or driveway. When the repairs cost twice as much as the car is worth, it might be time to find a new home for your old junker. But there is good news! Donating your car to charity is a great way to save thousands of dollars in tax deductions,  and best of all, it is easy to do.
Should I Donate My Car to Charity?
Many people wonder whether donating your car to charity is worth it. The answer is absolutely! Car donation can save you significant amounts of time and money. This is especially the case with donating cars that are still in good working condition. Cars that can still be used can get you a significant tax deduction if you give them to a charity organization.  Here are six reasons to donate your old car:
1. You will help a charity that you believe in and trust
Not only will car donation help you get rid of the junk that’s been taking up space in your garage for years, it will allow you to assist your preferred charity organization make a difference in the world.
2. You will provide a working car for a charitable organization
A reliable vehicle, no matter how old, can be used to perform many valuable duties. United Way, the Salvation Army, and Goodwill are all charities that use donated cars. There are also many vocational schools and community colleges that may accept a car donation.
3. You will get a nice tax deduction
There are strict rules in place that complicates this process, but your deduction can be near fair market value. If a charity sells your donated car, and it is worth more than $500, you are entitled to a written notice that details the gross proceeds of the sale and explains that the vehicle was “sold in an arm’s length transaction between unrelated parties.” Charities that intend on using the donated car in their programs also have to give you a written certification detailing when and how it will be used. Vehicles worth more than $500 require that you file IRS Form 8283 with your return. For cars worth over $5,000, you will need to get an independent appraisal as well as provide a copy of the charity certification with your tax return 
4. You will save time by not having to sell the car yourself
Car donation means that you will not have to do all of the work that selling a car entails. You won’t have to worry about taking out an ad, talking to customers, showing them the car, and negotiating the price.
5. You will get a free pick-up
Most charities that accept car donations will also collect those vehicles free of charge. However, towing charges will be deducted from the value and thus your tax deduction.
6. You can donate a car without a clear title
Certain charities have no problem taking a car without a title. However, your car will then be sold for parts or scrap which reduces your tax deduction, but also clear your driveway and prevents any headaches when it comes to sorting the title out.
IRS audits are often triggered by non-cash donations  so be meticulous when it comes to documenting everything. You should also read the IRS donor guide to vehicle donation.  Otherwise, remember that donating a car that the charity will use or sell to a person who needs it will get you the closest to a vehicle’s blue book value.