Donating My Car to Charity - Anyone Gone Through the ATO Valuation Process?

[u/Craigmate]

Hi all,

I've decided to donate my car to a charity, mainly because I can't be bothered dealing with the hassle of selling it myself. It also needs a service, which could end up costing a bit of money.

The car is still running fine and is completely drivable.

I've sent the details to the charity and they've come back with two options:

1. Get an ATO-approved valuation (costs $241) and receive a tax deduction receipt based on the valuation.
2. Wait for the car to be sold at auction and receive a receipt based on the final sale price.

My question is: has anyone gone through the valuation option before? How conservative are the valuations? Do they tend to come in lower than market value?

I've had a look on Carsales and the pricing for my car seems to be all over the place, ranging from about $1,500 up to $13,500. My car has lower kilometers than most of the ones currently advertised, so it's hard to know what it's really worth.

For reference, it's a 2010 Audi Q5.

I'd be interested to hear from anyone who's donated a vehicle and whether the valuation or auction route worked out better for them.

[u/Professional-Fix6764]

selling your car to car dealers is built for lazy people they make it so easy

but respect for donating to charity!

[u/AltruisticWing8620 → u/Professional-Fix6764]

Why is it lazy ? Too many tire kickers around - easier to just sell to a dealer

[u/Professional-Fix6764 → u/AltruisticWing8620]

Lazy because you can’t be bothered dealing with those tire kickers even though you could probably get a better price.

I agree thats why I would go to a dealer, I value my time. I guess lazy might not be the right word in that case :)

[u/in_and_out_burger]

This sounds like more work than just selling it to a dealership.

[u/Present-Carpet-2996]

Just go to carsales.com.au and do an instant quote. You can accept and drop it off local dealer next day or so and get paid.

It's not hard to sell a car, they are extremely easy to move just depends on the price.

Then donate that money if you wish.

[u/Pingu_87 → u/Present-Carpet-2996]

a lot of the time if it's more than 10 years old those dealers won't touch it. which is the instant quote.

needs to go to secondary dealer market.

[u/Craigmate → u/Pingu_87]

I just went to carsales, and they rejected it and suggested I create an Ad

[u/Pingu_87 → u/Craigmate]

yeah exactly my point too old

[u/JustabitOf]

I would have thought the valuation would be vastly higher than a auction or dealer price as a car is worth far more than they'll both pay.

So likely to pay for the valuation would still give a higher tax deduction/benefit even after paying for the valuation.

For the car valuation check out the Redbook valuation for the model. The higher private range is for lower km and better condition. I would assume the valuation would match the higher price in private valuation range. But I'm not accross what really happens with the charity valuation. That's how insurers work it and they are valuing written off cars all day long - red book

[u/ChrisSydney82]

Love this idea. Good for you.

[u/Cat_From_Hood]

Just go to a car dealer.  They will sell it.

[u/Old-Memory-Lane]

Given it’s September and you’re unlikely to start this FY tax before July, next year, I’d wait for the auction and hope the charity gets the highest amount possible. Or I’d sell to a dealer and then donate to the charity the cash amount.

Great idea. I was trying to think of a way to offload my car (~$10k) when we finally get the balls to buy a new car. And after BIL smashed the $20k car we gave him, I was looking for a cousin etc. Love the idea of charity.

[u/PsychologicalEbb2518]

Which charity takes cars as donations? I would have thought this would be a complete pain for charities - after all, they are hardly used car dealers.

[u/Craigmate → u/PsychologicalEbb2518]

I am dealing with Kids Under cover, some of them have agreements to help apprentice mechanics to learn,

[u/JustabitOf → u/Craigmate]

Surprised how many don't get the concept here.

Charity is geared up for these donations. You get to get rid of your old car easily to a good cause and get a useful tax refund from it. The charity and their clients appreciate it, your refund appreciates it and you potential save on a bunch of hassle too.

[u/Harry-blue96]

So the charity pays for the car service. You will need a roadworthy certificate to transfer title, depending on the cars condition, that could be expensive.

[u/flywire0]

?? So you are thinking of selling it at auction because you can't be bothered selling it yourself?

[u/Craigmate → u/flywire0]

no, I am donating it to charity, and they will sell it, they keep the money, I get the tax deduction.

[u/flywire0 → u/Craigmate]

I just offer them on marketplace. Doesn't take long to assess someone's situation and 100% goes to a person in need rather that chewed up in charity costs and BS.