1. Get a good estimate on your car is worth

There are a ton of sites out there that tell you what they think your car is worth, but you need to get an evaluation from many sources. I advise doing at least the following:

• Get the True Market Value (TMV) from Edmunds.com. Be honest with the condition of your car because very few cars will really sell for the “Excellent” price. Most cars are Good or Fair. Same goes for
• Kelly Blue Book (kbb.com). Keep in mind though, that these sites are often what vehicles are listing for, not always what they’re selling for. Look at the trade-in and private-party values and know you’ll probably have to settle somewhere in the middle (unless you have a hot car, which depends on the market).
• Take it to CarMax for a free estimate, if you have one around. They’ll even give you an offer on the spot, but in my experience, it’s often a very disappointing offer. But remember, they’re buying it to resell so they need to make a profit on it. If you’re in a pinch, this is a fast way to sell it, but you need to come up with the remainder to clear the lien on the car.
• Look at local listings on sites like AutoTrader.com, Cars.com and local classifieds to get an estimate of what other cars like yours (make, model, year) and even in the same category (SUV, midsize sedan, truck) are listed for. Remember again that even if something is LISTED for a price doesn’t mean it’s going to SELL for that price.

2. If you don’t have cash, get a loan to pay off the “remainder”

If you’re willing to take the hit on the car and just have to sell, then contact your local bank or credit union to get pre-qualified for a loan to pay off the difference when the sale is ready to happen. You may have collateral you can put up for the loan, or it may be an unsecured, higher rate personal loan, but it’s impossible to finalize a sale when you still owe money on the car. The bank just won’t release the title to you for you to transfer.

3. Make your car nice and shiny

No one wants to buy a dirty car, so pay the $100 or so to get it detailed inside and out. It won’t get rid of dents and big scratches, but it’s been proven that a detailed car will bring in the extra money to at least pay off what you spent on the detailing AND help sell it more quickly. If you’re good enough, you can save even more by doing it yourself.

4. Advertise, Advertise, Advertise!

When I sell my cars, I put it up on Cars.com and Craigslist. I put window stickers and have even created a webpage for one car (I already pay for the hosting, so the extra $10 for the catchy domain name was worth it). I referenced the cars.com ad and my website on craigslist, and vice-versa to make sure people cross-shopped (and I made sure all the sites stayed updated if I changed the price). Also, most important, include flattering photos of the car. Remove any junk or personal items, find a generic location where you won’t have people walking into the shot or other cars crowding in and shoot away. Look at some professional car reviews and how they take photos and try to emulate them.

Once your car is sold, consider buying a very cheap, used, reliable car ($2k or so), or use public transport and rental cars if you have the option. Take the money you’ve saved on that monthly payment and put it towards that loan. If you didn’t have to take out a loan, put it towards a “car fund” and try to pay cash or mostly cash for your next car!

As with many charities there is a lot of money spent on acquiring donations. In fact, some charities spend the majority of their funds on acquiring more donations – leaving a lot less for the actual charity recipients themselves. This is why some people choose not to give to charities that solicit donations.

With the car donations, it is even worse. There are many For-Profit companies that advertise as a means of donating your car to charity and they leave very little left for the charity. They typically leave the charity 50% to as little as 10% of the value of the car – and keep the rest as their revenue.

The better way to find a place to donate your car

Since the charity car donation thing has gained so much interest, quite a few charities now have this as an option – even though you may never see them advertise it. So, next time I donate a car, I am going to call charities that I am already familiar with and trust and ask them if they accept car donations. Not every charity will accept them, but you might be surprised how many do.

To find great charities check out Charity Navigator or the BBB.

Drop the car off – if you can

While it may seem obvious, it is a better idea to drop the car off at the charity rather than having it picked up. Your car won’t be picked up for free – they will incur some kind of expenses picking up your car from your house – and these are dollars that won’t be going to the charity recipients. So, if you have the means, dropping it off would probably be a better move.

Transfer of Title

In order for the charity to become “legal” owners of the vehicle, they are going to need to title. It is a better idea to fill out the transfer of ownership section rather than leaving it blank. And it may be a good idea to let the DMV know the transfer as well. If the car has a license plate, you’ll need to return the plate to the DMV (depending on state), and may even need proof of the “method of disposal”.

Taking the tax deduction

According to MSNBC, “If your donation is worth more than $500, you’ll have to attach IRS Form 8283 to your tax return. If it’s worth more than $5,000, your documentation must include an outside appraisal. You’ll also need proof of the donation, such as a receipt from the charity and a copy of the title change.”