Disposing of an old vehicle that doesn’t have a lot of life left can be a hassle – but it doesn’t have to be. What if we told you that you could get rid of your old car, hassle-free, while at the same time doing a good deed for charity?
Well, you can! Donating your old car to charity is a great way to do a good deed for yourself and for someone else at the same time – and you get a tax receipt for doing it!
Will I get a tax receipt for Car Donation in Canada?
Yes. When you donate a vehicle in Canada, you will receive a tax receipt. In most cases, how much you’ll get on the tax receipt will be based on the fair market value of your vehicle. Factors that will be taken into account include visual appearance, mileage, damages, drivability, and mechanical damages.
You should know that processing costs are usually deducted from the original sale price. Processing costs can include lien checks, towing charges, gas, cleaning, auction, and any administrative fees.
The net sale amount (after processing costs are deducted) is what is then donated to your preferred charity. Your actual tax receipt amount will be based on the net sale amount.
It’s hard to predict the exact amount you’ll receive since the auction sale price and processing fees will vary. Some cars go for as high as $25,000 while others are as low as $3000 or even less.
The Rules of Car Donation in Canada
When donating a car in Canada, there are, of course, some rules. First, the car has to be yours. This means you can’t go and sell your soon-to-be ex-wife’s car because she cheated on you. Rather, the car must be fully in your name before you can donate.
Second, you must be sure that your vehicle does not have a lien on it. In other words, the vehicle must not have any money owing against it. If you purchased your vehicle from a dealer and you haven’t taken out any personal liens, this shouldn’t be an issue.
But if you purchased the vehicle through a private sale, you may need to check with the seller that there are no liens placed on the vehicle (which is something you should look into anytime you buy a vehicle anyways).
Most donation centers will also require that the vehicle be registered in Canada and that no parts can be missing from the vehicle. With this being said, donation rules can vary from center to center, so always check with the center first to make sure your vehicle is in donatable condition.
How Do I Donate a Vehicle in Canada?
Most donation centers make it pretty easy to donate a vehicle. In most cases, donating your vehicle is as simple as making a call to the center and filling out a donation form from their website. If your vehicle is accepted, the majority of donation centers will come and pick it up or tow it from your property without any hassle or fees.
Because you are doing a generous favor, donation centers like to make the process as easy as possible for the donor. For this reason, vehicle donations can usually be made in just a few simple steps.
What will happen to my donated vehicle?
When you donate your vehicle in Canada, the donation center may or may not put money into repairs. Some vehicles are cleaned up and sold, others are placed up for auction for parts, and others are recycled. All proceeds from sales are then given back to the charity to help with their cause.
Where can I donate my vehicle in Canada?
There are dozens of different charities in Canada that accept vehicle donations. Whether you want to help a child in need, improve your community, or contribute to raising money for cancer research, there is a donation center in Canada for almost any cause.
For a complete list of charitable causes that accept vehicle donations, visit Donate Car.
