Buying a New Car?

Border Collie Rescue is currently in need of a sturdy, functional car for use in our program. It doesn't have to be fancy or even very good looking. We just need one that in good operational condition and can get us from here to there. Just about anything that runs well will suffice. Why should you donate your used car instead of trading it in, you might ask? Well... here's why:

Buying a new car can be a real hassle, and one of the worst problems is trying to trade in the old one. How often have you felt that the new car dealer expected you to pay full price for the new car and throw in your used car for nothing? Well, Border Collie Rescue has turned this problem into a benefit for both you and the dogs, and here's how it works. When your vehicle is donated, Border Collie Rescue provides a receipt for the documented resale retail value of the car. It is legitimate and allowable for Border Collie Rescue to value the vehicle at the retail price (not the price that you could sell it for, but the price that the dealer could sell it for at retail, showroom value) recommended by the regularly published National Automobile Dealers Association (NADA) guide. This price, called the "blue book" price by the industry, is probably closer to the price that the dealer would sell the car for on the used car lot, and can be considerably higher than the trade-in allowance. You are then allowed to take a tax deduction based on the contributed (blue book) retail value, and Border Collie Rescue is free to use or sell the car, usually for a wholesale price, and use the vehicle or proceeds to further our mission.

Here's an example of how it might benefit both you and Border Collie Rescue: You have a luxury car that is perhaps six or seven years old, with over one hundred thousand miles. The new car dealer offers only $2500 for the car in trade-in value. The car has a blue book value of $12,000, so if you donate the car, you get a receipt for the full $12,000. If you are in a 35% tax bracket, the tax break for the contribution is considerably more than $2500. Border Collie Rescue then has a few options; we could use the car, we might sell the car wholesale to a used car lot (meaning that Border Collie Rescue would probably receive about $2500), or we could try to advertise and sell the car ourselves. So you see, it's a win-win situation. Not only do you get to trade-in your old car for more money than a dealer would give you, but it is hassle-free (in other words, "haggle-free") and Border Collie Rescue benefits enormously as well. You solve your own headache and end up making a wonderful contribution to the dogs at the same time. If you'd like to discuss donating your used car to Border Collie Rescue, give us a call at (936) 856-3745 or .

 

 


Page last updated April 5, 2002. All material Copyright © 2002 Border Collie Rescue, Inc. and Dr. Nicholas B. Carter
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