So you’ve got an old car in your garage that you’re not quite sure what to do with. Your decision may depend on a couple of factors. Firstly, regarding your financial situation: Do you need the money? In that case selling your car is the way to go. Otherwise you can consider giving it away. Or if it’s in a condition that renders it useless to anybody who may own it, you would perhaps be better off getting rid of it.

If you’ve decided to sell your car, get it in good shape first. Repair the broken parts, get the washing and waxing done, and also get the basic maintenance done. When you are confident that it looks good enough to be sold, advertise it. Advertising can be done in the classifieds section of the local newspapers, and affordable magazines. The internet offers you a great platform to do this, since a lot of the advertising can be done for free. Keep it clear, simple and honest. You can also check the classifieds for ads by other people who are looking to buy a car. There will generally be bargaining done in the process of selling your old car, so when you are quoting your price, add a few hundred dollars to the sum that you actually want to sell it for. While advertising, it will do you good to mention whether you have been the only owner of the car.

Okay so you’ve decided that you don’t need the money. Donating your old car to one of your family members, perhaps a niece who is heading off to college, or a friend who might not be able to afford a car at the moment but could certainly use one, is a good idea.

Charity is an option that will do others good, and also earn you some karma points – if you believe in that sort of thing that is. But it will also get you a tax deduction too! There are a few things to bear in mind while making a donation. The paperwork and formalities increase as the value of the object you are donating increases. These must be handled carefully, and also, think twice before picking the charity. You must make sure that the organization is a qualified one, in order for your donation to be recognized. Here is an overview of the paperwork that you would be looking at:

For comparatively small sums of money, such as $300, all you would require is an acknowledgement from the charitable organization. For larger sums of money, such as $600 and above, it is required that you fill out Section A of the IRS Tax Form 8283. And for greater sums, such as $5000 and more, you must fill out Section B of Form 8283, and get the signature of a charity official, verifying that you did make a donation.

Your old car might even turn out to be a money churner – if it is old enough, that is. The parts of your classic car – headlights, bumper – might just fetch you enough money when auctioned. If the car is in bad shape, but the parts are in perfect shape, then why not just sell the parts?

Of course, you can trade your car for a new one. This option reduces the amount of money that you need to deposit as a down payment and also helps you get rid of your old one quite effectively. Recycling your old car may seem like a good idea for those who are environmentally conscious.