Whether it is better to junk a car or donate it depends on your financial goals and tax situation.
| Option | What You Get | Best For |
|---|---|---|
| Junk the car | Cash payment at pickup | Immediate money, any tax situation |
| Donate the car | Tax deduction (if you itemize) | Higher tax bracket, itemized deductions |
Junking your vehicle gives you cash in hand, usually the same day. Donating gives you a tax write-off, but only if you itemize deductions on your tax return. Most people take the standard deduction, which means a car donation provides no tax benefit.
If you do itemize, the deduction equals the sale price the charity receives when they sell or scrap the vehicle, not the car’s market value. For most junk cars, this amount is low.
Junking is better for immediate cash. Donating is better only if you itemize and are in a high tax bracket. If you want money now, sell your junk car for cash instead.