Debt Free 101 – #19 Give Away Your Car

#19  Give Away Your Car

I do not believe one can settle how much we ought to give.  I am afraid the only safe rule is to give more than we can spare. C.S. Lewis.

If you are trying to get out of debt, your car is going to explode.  The Emergency Fund (#3), handles the replacement, but what do you do with your lifeless carriage?

When our original car (the Plymouth Breeze – sweet ride – photo is similarly sweet, but not ours) passed away it was like losing an old friend. An old friend that gave you money on a regular basis so you could slay the Dragon. We didn’t owe any money on this vehicle so it was a major help. Having a car go down in a breeze of glory (see what i did there?) could have been a major hit to our progress. And prior to our DSJ, I would have junked it. But, a DSJ makes you think differently. So does a good CPA. A wise man surrounds himself with wise counsel. Our CPA suggested donating the vehicle to have it repaired and sold. This is different than just donating the vehicle to any non-profit.  Sometimes, you don’t get much for a straight up donation.  If I would have junked the vehicle, we would have received about $100.00 (maybe we could have got a little more if I would have sought out a metal scrap yard instead of a straight up car junkyard).

We donated the Breeze to a mission that trains homeless men how to work on cars. The mission gives the homeless men a life skill. The mission sells the vehicle and uses the money to train more homeless men how to work on cars. It’s a brilliant plan and a brilliant strategy.  Without the mission, the Breeze would have been in a junk heap. Instead, it was a gift unto this world. Economically, it was a gift to us. We were able to claim the value of the vehicle after it was repaired and sold for tax purposes. At our tax rate, it benefited us three to five times as much than if we would have just junked it. We win. The mission wins. Homeless men win. Society wins.

Please be reminded, I don’t give tax advice. See your tax professional. If you see ours, tell him we said hey.

READ THIS: Think and Grow Rich by Napoleon Hill

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  • Star1412

    debt snowball journey?