What Should You Do With Your Gas Hog

The economy continues to struggle and gas prices remain high. The cost to fill up the gas tank in an average car is over $60. If that is breaking your budget, there are two things you can do about it. You can try to improve the gas mileage in your car or you can replace it with a more fuel efficient one.

To improve the gas mileage in your car, make sure your tires are properly inflated. Under inflated tires will waste as much as 2 miles per gallon. Also, put in new spark plugs in every 30,000 miles and replace your air filter regularly. A tune up will also help. The smoother your car runs, the better its gas mileage will be. You should remove anything from your car you do not really need. The more weight there is in your car, the more gas it will use.  Also, remove your roof rack when you are not using it and if you have a pickup truck put a bed cover on. These changes will reduce drag and give you 2 or 3 more mpg.

Of course, the ultimate gas saver is to slow down. The faster you drive the more gas your car will use. If you drive the speed limit, accelerate gradually and avoid sudden stops you can save 3 mpg or more.

If you do buy a fuel efficient car, you have to figure out what to do with your gas guzzler. The car dealership will probably not want it as a trade in because there is no demand for them. For the same reason, it will be difficult to sell it privately. You can sell it for parts at a junk yard for a couple hundred dollars, or you can donate your car to charity. When you donate car, you get a tax deduction of the amount the charity sells your cr for or $500, whichever is more. You only need to itemize on your federal tax return to claim your tax deduction. 

Cars4Charities will gladly take your gas guzzler for donation. You car will be picked up for free too! You just need to provide them with a valid title for your car. And, Cars4Charities has hundreds of charities that can be helped by your car donation. For details, please go to http://www.cars4charities.org/ or call 866.448.3487.

I am Buying a New Car, What Should I do With My Old One?

When purchasing a new or used car, there are several things you can do with your older car. You can use it as a trade in, you can sell it privately, you can give it to a friend or relative, or you can donate car to charity. There are pros and cons with each choice.

Negotiating the purchase price for a car with the dealer is difficult enough without having to haggle over the trade in amount. Most car buying guides indicate that you can probably make a better deal without a trade in. If your used car needs significant repair or does not run, the dealer may not offer you much of a trade in for it simply because he does not really want it.

Selling your used car privately comes with its own set of problems. First, you have to advertise it and wait for people to response and make arrangements to look at it. Then, you have to wait for them show up.  If you car does not run or is in poor condition, you might have to makes some repairs in order to sell it. Once you have an interested person, you then have to negotiate the selling price. After you settle on that, you have to establish the terms of payment, i.e. will you take a check, accept payments, etc.  Accepting another method of payment other than cash, a money order or a certified check is never in your best interest. There are some other concerns associated with the private sale of a car. Everyone has heard horror stories of the buyer suing to get their money back by claiming the car had some major problem that the seller failed to disclose. Fortunately, in most states private sales are viewed as being as-is and these types of lawsuits are generally unsuccessful. The other concern is that the buyer will drive the vehicle without transferring the title or registering it in their name. This can happen particularly in states where the license plates stay on the car.

On the surface, giving your older car to a friend or relative seems like a very generous gesture. However, this can really backfire and cause irreparable damage to your friendship particularly if the vehicle develops a major problem you were not aware of shortly after the gift.  Besides the possibility of losing a friendship, you will get no financial benefit by gifting a car.

Car donation may be the least stressful of all the choices. The financial benefit to you is the tax deduction you will receive when you donate your car. You do have to itemize on your federal tax return to claim it. The car donation process is very simple. Usually, you only have to make a phone call or go online to donate your car. Your car should be picked up for free. Some car donation charities will let you donate car that is in poor condition or does not run. If that is your case, you may need to do a little research to find a charity that will take it.  To avoid any pitfalls, you should only donate car to a reputable car donation charity. That way you will not have to worry about any documentation issues.