The federal government's Cash for Clunkers rebate program seems like an easy win for everyone, right? The program has boosted the economy by spurring new car sales, helped the environment by cutting carbon emissions, and even reduced America's dependence on foreign oil by getting many gas guzzlers off the road in favor of fuel-sipping rides. But not everyone is pleased.
In fact, some charities have taken a hit.
The AP explains, "While ‘cash-for-clunkers' has been a huge hit with car buyers looking to snap up rebates of up to $4,500 for trading in gas-guzzlers for new fuel-efficient cars, some charities that rely on vehicle donations for funding say they're receiving fewer cars and trucks."
Some who had planned to donate their cars have even called charities asking for the vehicles back. The Fort Worth Star-Telegram reports, "Vehicles were already lined up for one of the weekly auto auctions benefiting Texans Can, a charity that helps at-risk teenagers and their families, when prospective donors started to call, saying they had changed their minds." Texas Can Vice President Cheryl Rios told the Star-Telegram "Texas Can has lost $75,000" to the Cash for Clunkers trade-in program.
Some charities depend on a steady stream of donated vehicles to fund a portion of their operations. The Colorado Springs Gazette explains, "Most large nonprofits send the cars to auction, and the sale proceeds can represent a sizable chunk of money to be used for programs. The local Goodwill, for example, took in 640 cars and trucks last year, which raised almost $370,000 for its programs." Some other programs refurbish the cars and give them to families in need of budget transportation. The donor of the car is typically allowed to write off some of the car's value from their taxes.
Not all non-profits have faced losses from Cash for Clunkers. Some have established relationships with local dealerships. When a buyer presents a dealership with a trade-in that doesn't qualify for the Cash for Clunkers rebate, the dealer can point the customer to a suitable charity that will accept the car and provide documentation allowing the donor to take the tax deduction. Mike Muzzi, who operates the Good News Garage, which "fixes up donated cars and provides them at low cost to struggling families," told the AP that "some car dealers with potential customers who don't meet stringent cash-for-clunkers requirements have sent business" to him.
DonateCarUSA, which handles donations for more than 400 charities, has set up a website to help consumers understand the process.
If you're interested in the Cash for Clunkers program, check out our Cash for Clunkers page. If you're ready to buy, contact local dealers. For the latest news on the program, check out Cash for Clunkers news.
