Should You Donate Your Car To The Government?

Over the summer there was a highly successful used car donation program that the federal government set up to help stimulate the economy and create reductions in pollution levels caused by gas guzzling cars. It went by the nickname, "Cash for Clunkers" and if your car met certain qualifications, then you could trade it in for money and use that cash to buy a new, environmentally friendly model. Though successful in one respect, there are some who did not support this program.

In essence, if you wanted to reap the benefits of this government-run program, you were required to meet certain criteria. Your automobile had to be of a specific year, the quality of the vehicle had to meet particular standards, and you had to produce further facts regarding your automobile. You'd have had to undertake the research to make sure that your automobile met the specifications of the cars that they were taking. And there was a deadline, so that you needed to ensure that you got any relevant facts assembled in time.

One reason why many people think you shouldn't donate your car to the government is that it tends to be a practice that really benefits the foremost car companies. The money made off of the cars that were turned in was typically used to help the main car manufacturers and after the massive amounts of money previously spent on bailing them out, most people simply weren't interested in supporting them. Due to the fact that year restrictions were in place, vehicles that were a few decades old weren't eligible and thus the program didn't fully support ecological aspects either.

Should you donate your car to a charity, rather than to the government? Many people say yes. Though the success of the auto industry is somewhat tied to the success of the overall economy, many would still rather see the charity programs out there get the donated vehicles. There are a number of systems in place where charities can have cars fixed up and then sold, or fixed up and then donated to needy individuals and families. A government-run program such as the one implemented in 2009 takes this much needed revenue away from the charities.

Obviously, if you choose to participate in a government car donation program that is your choice, and it may be the best choice in terms of making a bit of extra money. But if you look at the bigger picture, then you may want to think twice before you donate your car in this way. There are limited ways to help those who need extra support and if you don't donate your cars to charity, then there may be additional suffering that goes on. Besides, you can always get a tax break based on your donation.