These days I can hardly tune in to radio station for an hour without
hearing those annoying "Donate your car today" jingles. Anybody knows
what those charities do with the donated cars? Do they turn them over to
some used car dealers for resale and then they get maybe a dime on a
dollar of the sale price? Better than nothing, I guess, but it still
would smell like a scam to me.
well, the cars are collected by a "processor" that handles donations,
then hands a percentage the cash to whoever the worthy cause is. the
same processor can act for multiple recipient organizations.
other than that, dmv does indeed pay to take old cars off the road, or
they do here in kalifornistan to the tune of $1000. and junkyards do
indeed get paid to "recycle" what dmv takes in, apparently $500 or more
depending on vehicle. then, if the junkyard re-sells the car, they can
get anywhere from $1500 on up. my local had a crash-damaged late model
civic for sale last weekend for $2500!!! i've seen other high-end
vehicles handed in as i entered the junkyard, only to see it being
loaded onto a private flatbed as i leave again. clearly there's a
market for vehicles where one party wants to junk them, and another
wants to buy them.
as for the processor, one of the outfits local to me is having a
promotion where they're giving away a 64.5 mustang. i'll bet they
didn't pay a dime for it and the prize value is estimated at >$10k. now
that's good business if you can get it. for all the rest of the crap
that has no resale value, they go for parts and scrap metal. scrap
steel's worth decent money to smelters - much cheaper easier than
refining from ore.
well there has to be something in it - all there donation companies
don't do all this stuff for free in your state i'm sure.
yup. i'm pretty sure kalifornistan is ass-deep in something there too
because i recall reading something about insurers being "encouraged" to
write off vehicles much more aggressively to help out the car sales
lobby. and the steel recyclers, that just so happen to own the
junkyards where they get sent, and who aren't exactly unfamiliar with
the halls of sacramento given that they had to do a bunch of homework on
"environmental impact" a while back.
the whole thing is just a huge giant scam. people would junk cars
anyway, they don't need the taxpayer's involvement on any level. and
insurers should keep their sticky beaks out of it too.
If the car is worth $1,000, you give it to them, write off $1,000
saving maybe $300. They sell the car for $1,000, keep $800 as
overhead, and give $200 to the charity.
Whereas if you sold the car to Fred for $1,000, you could give $1,000
to the charity, for the same writeoff for yourself.
Have a nice day, suckers.
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