However there is still one loophole open, normally the charity’s want your car if they are going to sell it. This hole has been closed, or at least restricted! If the charity is going to use the vehicle for its own use then you can still deduct the full market value of the car, don’t count on this though as it is rare.

There are a number of charity’s that refurbish donated cars and gives them or sell them at a low cost to people who need a car but are unable to afford one through normal means. Many people who own cars worth more than $2000 are donating their cars through these charities instead as most are not just a free handout – the recipients must either pay for or work for their low cost ride.