Tag Archives: used car

Automotive

The Cost to Fix My Car is Just Too Damn High!

We have all probably been there; you bring your car in to the shop for what you think is a minor repair, then the mechanic comes to you and says the car needs expensive work.  Your reaction is to scream, “The cost is just too damn high”? Now what do you do? Well, you have a few choices.

You can pay the piper and get your car fixed. The question, of course is;”Is it worth it?” If the answer is; no or probably not, then there are some other things you can do with your car. You can trade it in for a new or better used car. Unfortunately, you may not get a particularly good trade in amount for the car if it needs significant repairs. You will have the same problem if you try to sell your car privately by advertising it the paper or online. It is extremely difficult to get a decent price for a car that needs repair. Even if your car is drivable, you have a legal obligation to tell the prospective buyer of any problems it has. If your car is really in bad condition, you can probably get a few dollars for it from a local junk yard.

If you itemize on your federal income tax return, you will get at least a $500 tax deduction if you donate your car to a charity. Sadly, many charities will not let you donate car if it does not run, is in poor shape or is over 10 years old. Fortunately, one charity; Cars4Charities does not care how old your car is, if it runs or what condition your car is in; they will proudly accept it as it is. Their simple requirements are that you have a title that is free of liens for your car, that the car is not stripped of any of its parts, that the tires are inflated and that the car is parked in a place where it can easily be towed.

Cars4Charities is recognized by the IRS as a 501 (c) (3) charity. Therefore, you be assured that they will handle your car donation properly and professionally. In return for your charitable contribution, you will get you a tax deduction of $500 or what Cars4Charities sells your car donation for, whatever amount is greater. They will also provide you with the forms you will need to submit with you taxes so that you can claim your valuable tax deduction.

Cars4Charities also allows you to donate car completely online at any time through their website, http://www.cars4charities.org/. This option greatly lowers their expenses enabling them to give more money to the charity you choose from their list of participating charities. It is also far better for our environment because it reduces the use of paper and other consumables.  If your car is in poor condition, Cars4Charities will make sure it is recycled properly.

For complete details on how to donate car, please contact Cars4Charities through their website http://www.cars4charities.org/ or by calling them toll free at 1-866-448-3487.

Automotive

Why are Used Car Prices so High?

If you are in the market for a good used car, you are probably experiencing something that is usually only associated with new cars, namely Sticker Shock. So, what is causing the price of used cars to be so high? There are many reasons for it, but they all basically boil down to the law of supply and demand. When the supply is low or the demand is high, the price will go up. Currently, the supply for used cars is very and the demand is very high, so both are happening. The demand for used cars in up because many people who would normally buy a new car are now in the market for a used car. Concerns about our economy are steering people away from large ticket items, like a new car.

The supply of used cars in the market has dwindled for many reasons. One of those reasons is the government’s recent Cash for Clunkers program. This was the program that was supposed to stimulate new car sales and thus our economy. Under that program, people were given vouchers of up to $4500 to use towards the purchase of a new more energy efficient car when they traded in their used less fuel efficient car that ran. About 700,000 cars were traded in under the Cash for Clunkers program. Since those vehicles were ones that ran, they would normally have gone straight into the used car market. Instead, under the rules of the program all of the Cash for Clunkers cars were destroyed. The result was a 700,000 drain on the used car market.

Another reason for the shrinkage in the number of available used cars is that many motorists are choosing to keep their used cars rather than trading them in for a new or newer one.  In addition, there is an extreme lack of cars entering the market from rental car agencies and companies that provide fleet cars to their employees. Those institutions normally trade their vehicles in for new ones every year or two. At this time, those companies are holding onto those vehicles longer due to our lackluster economy.

When the economy begins to sufficiently improve the sale of new cars will finally increase. When that happens, the supply of used cars will increase correspondently and the price of those used cars will start to come down. Until that time comes, the price of used cars will remain high.