If you’re sitting on an old vehicle that’s just collecting dust (or worse, expensive repairs), now might be the perfect time to turn it into something more meaningful. Donating your car isn’t just about clearing up space in your driveway — it can also come with financial perks, and the satisfaction of giving back.

Now I donated my 2008ish Subaru Forester that I got what I thought was a pretty good deal at the time in 2018. $3,000 for a car that had just been traded in. I saw it on a Subaru website, brand new listing with no listing price. Checking a few days later I saw the price of $5,900 and thought that has potential. Went in for a test drive… it was snowing so it was prime time for a test. I was satisfied and didn’t even want to haggle, just pay cash.

That’s when they told me they weren’t selling on their lot, it didn’t meet the dealership standards and they didn’t want their name on it. They’re sending it to auction.

As it was, the lady that traded it in bought it there, had it serviced there and the guys in the shop told me all about its history and issues. And I still wanted to buy it. So I offered them the $3,000 for the car just to and emphasized it save them the hassle of dealing with it, and it was mine.

It was a solid car for 3 years, but during the 4th we experienced some intermittent transmission issue till I finally decided to donate it to National Public Radio through the Car Talk Vehicle Donation Program. Here’s why….

Here are five smart reasons why donating your car could be one of your best decisions this year:

1. You Could Qualify for a Tax Deduction

One of the biggest incentives for donating a car is the potential tax break. If you donate to a qualified nonprofit, you may be able to deduct the car’s fair market value on your taxes (meaning what it is sold for). While the rules vary depending on how the charity uses the vehicle, it can be a nice financial benefit come tax season.

2. Skip the Hassle of Selling

Let’s real — selling a used car can be a headache. Between listing it, negotiating with buyers, and dealing with paperwork, it’s not always worth the effort. Donating your car is usually a straightforward process, and most charities will even tow it away for free.

3. Help a Cause You Care About

Whether it’s supporting veterans, environmental groups, or local community services, your donation can make a real difference. Cars can be sold at auction or used directly by organizations to support their mission, which means your old ride could be driving positive change.

4. It’s a Greener Option

Got a car that’s not worth much or no longer runs like mine? Donating it can keep it out of the junkyard. Many organizations work with recycling partners to safely salvage usable parts or scrap metal — making your donation an environmentally responsible move.

5. Clear Up Space

An unused car takes up room and mental bandwidth. Whether it’s an eyesore or just something you’ve been meaning to deal with, donating it clears the clutter — physically and mentally — so you can focus on more important things.

Final Thoughts

You can see that donating your car isn’t just a good deed — it can be a smart, low-effort way to get rid of an old vehicle, support a cause, and possibly put a boost your tax return. If your car’s taking up space and also not adding value to your life, why not give it a second life doing some good? I was stoked when I received a receipt showing it has sold for $800 as a charitable donation for my taxes. I was fairly surprised as it didn’t even run, as seen in the pic of it getting loaded on the tow truck (again, for FREE).

In the end we took the standard deduction for 2022 so my tax return was pretty simple. Didn’t really need that receipt after all, but hey, that’s $800 toward some of my favorite listening.