- Donating a car to charity is a hassle-free way to unload a vehicle, while helping a good cause. Most charities will accept vehicles whether they are running or not; many offer free pickup to make the process easier for you.
Automobile donations to nonprofit charities usually allow you a tax write-off in the amount of the vehicle value, or the sale price, if the charity sells it to raise money. See the Resources for national charities that accept vehicle donations. Feel free to contact local charities about this opportunity as well. As long as their tax classification is nonprofit, you will still qualify for a tax write-off. - Most states offer a sales tax credit for vehicle trade-ins. Trading in a car can reduce the taxable liability on the purchase of a different vehicle. Each state has different regulations, but most only require taxes to be paid on the price difference between the old vehicle and the new one.
Trading in is only a viable alternative to selling if you plan to purchase another vehicle. Trading is more convenient than selling, but will usually net you less money. - If you know someone in dire need of a vehicle, you can consider giving him yours. While this will do nothing to improve your tax or financial situation, you will be rewarded with knowing you helped someone.
If you don't want to give her the vehicle without conditions, you can ask for a small monthly payment for a predetermined amount of time. It is recommended to file a lien on the title in case she doesn't comply with the agreement; filing a lien will give you recourse to get the vehicle back.