HOW TO TRANSFER YOUR CAR TITLE:

You either give away your car as donation to a selected charity organization or sell privately.  In both conditions, you are required to switch your car title to its new owner.  The car transfer process should be documented in the state, otherwise be ready for unexpected penalties.

Handing over your car without title signed can put you in a problematic situation.  Like, if your car is impounded in traffic violence or involved in an accident then you are responsible to pay the penalty.  Transferring title is the only way to save you from the accountability of such problems.

Title is an official statement that confirms the name of current car owner and updates the DMV’s official record about new owner.  After signing the title, document can be forward to DMV either in person or through mail.

In general, DMV considers the buyer to complete the process of car title transfer within 10 days of a vehicle transaction.  Therefore, a rapid action is required to complete the process of title transfer and intimation to the state for title transferring.

If you sell or buy a car through a car dealer, then the car dealer is responsible to complete the entire process of title transfer.  However, if you are selling on your own, then it is very important to know how to transfer the car title.  The procedure of title transfer might seem complex, but it is not that tricky as it may seem.  Listed below are steps to transfer title:

1. Awareness of state laws about title transfer from DMV.  “http://www.dmv.org/ca-california/title-transfers.php”
2. Donor/Seller is responsible to fill the relevant sections such as name, address, selling price, selling date and area.
3. Car must have smog clearance certificate.
4. Fill out seller and purchaser information on the back of the current title.
5. Fill out the number of miles from odometer.
6. If title has more than one individual, then mention both names.
7. The seller and charity the buyer, both will sign.
8. Buyer will go to the local DMV office after filling out the original title.
9. Dealer will be responsible to pay $15 as title transfer fee within 30 days.
10. DMV will send a new title through an email.

“The California Department of Motor Vehicles (DMV) makes many of its CA forms available online, while others are offered only at DMV offices or by mail. You'll find many downloadable forms below.

If a form is not available online, you can contact the DMV at (800) 777-0133 or visit your local DMV office for a copy.

Please visit our other pages for CA Driver's Handbooks and Motorcycle Manuals.” http://www.dmv.org/ca-california/forms.php

NOTE:  The process of car title transfer is not same in all states.  This law varies from state to state, though the basics are almost same.

WHEN AND WHY A CERTIFIED APPRIASER IS REQUIRED:

There are certain ways to appraise the Fair Market Value (FMV) of your donated car.  By using online car rating tools like Kelley Blue Book or the NADA Guides “http://www.nadaguides.com/,” you can get an initial FMV estimation of your donated car.

If your claimed tax deduction is greater than $5000 for your donated car, then a written appraisal of your car is required from a qualified appraiser.  As per IRS (https://www.irs.gov/pub/irs-pdf/p4303.pdf), page 7, 2^nd paragraph, following guidelines will help you find the responsibilities of a qualified appraiser:

1. Make sure that the appraiser is certified by the ASCAA.
2. You can find a list of certified appraisers from the link below:

http://www.certifiedautoappraisers.com/California.html

3. As the first step, an appraiser would take the photograph of your vehicle.
4. Would check the car documents.
5. Would check the interior and exterior of your car.
6. Would take a test drive of your car.
7. A complete inspection of your car that affects your car value is noted down, which includes:

Ø  Make and Model.

Ø  Inside and outside condition.

Ø  Mileage.

Ø  Replaced parts in the vehicle.

Ø  Modifications in the vehicle.

Ø  Listing of extra features of your car such as security system, sound system, rims, etc.

Ø  Checking your car’s history report.

8. Written appraisal should be mailed within 10-days.
9. The expected date of donation.
10. The appraiser should be up to date with the national sales and auction data so that he/she can easily compare your donated car against present market conditions.

WHEELS FOR HELP: 7 AWESOME WAYS TO INCREASE YOURCAR RESALE VALUE:A...

WHEELS FOR HELP: 7 AWESOME WAYS TO INCREASE YOURCAR RESALE VALUE:
A...: 7 AWESOME WAYS TO INCREASE YOUR CAR RESALE VALUE: As the new car drives off from the showroom, there is approximately 15-20% depreciat...

7 AWESOME WAYS TO INCREASE YOUR CAR RESALE VALUE:

As the new car drives off from the showroom, there is approximately 15-20% depreciation in its value.

Keeping your car in a good condition not only maximizes the life of your car, but also increases the resale value of car.

Here are a few things that can help increase the resale value of your car:

1.  ONLINE DEPRECIATION CALCULATOR:

Online depreciation calculators will help calculate the depreciation over 5 years.

http://www.edmunds.com/car-buying/how-fast-does-my-new-car-lose-value-infographic.html 

2.      SELECTION OF CAR:

Resale value depends a lot on the make and model of your car.

3.      MILEAGE:

According to the U.S. Department of Transportation, a car that drives 13,500 miles per year is an average car.  One can try to keep the mileage below through rent-a-car.

4.      A STITCH IN TIME SAVES NINE:

Taking good care of your car mechanically and cosmetically in a timely manner can increase your car’s resale value.

Ø  Always use the highest viscosity engine oil or as per manufacturer’s suggestion.

Ø  The average mile range to change oil is between 3,000-10,000 miles.

Ø  Always keep your tires properly inflated.  As per fueleconomy.gov, “You can improve your gas mileage by up to 3.3% by keeping your tires inflated to the proper pressure. Under-inflated tires can lower gas mileage by 0.3% for every 1 psi drop in pressure of all four tires. Properly inflated tires are safer and last longer.” “https://www.fueleconomy.gov/feg/maintain.jsp “

Ø  Change air filters around every 15,000-20,000 miles.

5.      MAINTENANCE RECORDS: 

Always maintain your car’s work record such as maintenance summaries, oil change, tune-ups, receipts of complete engine inspection, battery and changed accessories, etc.

6.      VIN REPORT: 

The VIN report has a complete history of the vehicle, from dealer to current owner or a change in ownership.  “VIN number can be checked via the National Motor Vehicle Title Information System (NMVTIS).” For more information about VIN, please visit the following link:

https://www.dmv.ca.gov/portal/dmv/detail/vr/nmvtis_check

7.      First Impression Goes A Long Way:  Fine leather seats covers, floor console, active door panel, clean mats, exterior with nice color, bumpers, headlights, tail lights, side mirrors, etc., will increase the resale value of your car.

 8 KILLING FACTORS THAT CAN DIMINISH YOUR CAR  VALUE

If you want to retain the resale value of your car, then the thumb rule is to keep your car’s condition as good as possible.  Here are a few things that can cause decline in the resale value of your car:

 01.   MAKE AND MODEL: 

The resale value of the car depends a lot on the make and model.

 02.   AGE AND MILEAGE: 

10,000-15,000 miles on an odometer can lower the resale value of the car.  The miles on an odometer also helps an appraiser determine the age and condition of the car.

 03.   LIMITED EDITION: 

Cars with unusual colors like bright pink, Vegas yellow, Viper green, Glut orange, etc., can not only reduce the resale value but can also give a hard time selling.

 04.   INTERIOR: 

If the car interior has worn out seats, damaged steering, scratches on windscreen, no seat belts, torn ceiling, out of order ceiling light and grubby mats, etc., then these elements can reduce the resale value.

 05.   EXTERIOR: 

The appraiser determines the grade scale of the car by examining the exterior.  Cars with scratches, dings, dents, etc., will be listed as a fair or a poor conditioned car.

 06.   ACCIDENTAL CAR: 

Prior auto collision automatically brings down the resale value.

 07.   NO MAINTINANCE RECORDS: 

If you have not maintained your car’s work record such as maintenance summaries, oil change, tune-ups, receipts of complete engine inspection, battery and changed accessories, etc., then you cannot claim the desired value.

 08.   MODIFICATION: 

Modifications can increase or decrease the value of your car.  Following modifications can diminish your car value:  Fake Engine Sound.  Giant Wings.  Body Kits.  Low profile tires.  Stickers. Tinted Windows.

Link to check your car’s value: 

http://www.kbb.com/car-values/

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Record Keeping and Filing Requirements for Tax Benefits Through Car Donation

Record Keeping and Filing Requirements for Tax Benefits Through Car Donation

Your donated car not only gives the maximum benefit to your desired charity organization, but also helps you get “Tax Deduction.”

As a donor, you need to keep record and file an additional form to substantiate your car donation.

Below you will find the record keeping and filing requirements for tax deduction ranging from less than $250 to greater than $5000.

Tax Deduction of less than $250:

There are only record keeping requirements, which are as follows:

1. Name/Address of Charity.
2. Date of Donation.
3. Place where you donated vehicle.
4. Description of vehicle.

Tax Deduction Ranging from $250 to $500:

There are only record keeping requirements, which are as follows:

1. Name/Address of Charity.
2. Date of Donation.
3. Place where you donated vehicle.
4. Description of vehicle.
5. Contemporaneous written acknowledgment from charity.

Tax Deduction Ranging from $500 to $5000:

The record keeping and filing requirements are as follows:

1. Name/Address of Charity.
2. Date of Donation.
3. Place where you donated vehicle.
4. Description of vehicle.
5. Contemporaneous written acknowledgment from charity.
6. Written acknowledgment.
7. Form 8283, Section A.

Tax Deduction Greater Than $5000:

The record keeping and filing requirements are as follows:

1. Name/Address of Charity.
2. Date of Donation.
3. Place where you donated vehicle.
4. Description of vehicle.
5. Contemporaneous written acknowledgment from charity.
6. Written acknowledgment.
7. Form 8283, Section A.
8. Form 8283, Section B.
9. Written appraisal — if deduction is not limited to gross proceeds.

http://www.irs.gov/pub/irs-pdf/p4303.pdf

Record Keeping and Filing Requirements

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You can download the Form 8283 from following link http://www.irs.gov/pub/irs-pdf/f8283.pdf

Form 8283-Section A

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Form 8283-Section B

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How To Select A Third Party Organization

How To Select A Third Party Organization:

You might find yourself in a fix to handle the whole process of car transaction and provide the money to your desired/selected charity.

In such a circumstance, one thinks of a third party or a middleman who keep their fair percentage of profit from selling the car and providing benefit to the donor (tax deduction benefit) and the charity (money).

There are no set parameters to find a genuine middleman or third party organization, but instead there are few steps whereby you can save yourself from car donation scammers:

1. First and foremost, check whether your vehicle is a qualified vehicle or non-qualified for donation through a guide provided by IRS “http://www.irs.gov/pub/irs-pdf/p4303.pdf “ Page 4 Paragraph 1.
2. Use the link “http://www.kbb.com/ OR http://www.kbb.com/used-cars/” to assess your vehicle’s actual market value in order to get the fair amount.
3. You can Google for a third party and when you are sure that the third party is credible after doing some background checks (you can Google company’s name to look for any news/incidents related to that company), you can ask them for their contact number and address to visit their office.  This will ensure the validity of their organization.
4. Make sure that the third party organization is authorized by the government and ask if they are licensed.
5. Choose the third party that can provide maximum tax deduction for your car donation.
6. Ask third party to provide sales receipt of the vehicle.
7. Avoid third parties who offer vacation or gift certificates. There is a possibility that if you avail a $100 gift certificate or any such in exchange of your car donation, then you may not be entitled to tax deduction.
8. Make sure that the third party organization’s name is clearly mentioned in the title of the donated car.  This will serve as an evidence for IRS to validate the title transfer, which will allow you to get the desired tax deduction.
9. Make sure that you are not charged for the tow truck to tow away your donated vehicle.

Note:  I searched Better Business Bureau and found a listing of a third party car donation service http://www.bbb.org/greater-san-francisco/business-reviews/fund-raising-counselors-and-orgs/car-donation-services-in-martinez-ca-58294

Disclaimer:  I have no affiliation with any organization/company/service whatsoever related to car donation.

Car Donation - Learn more at Wheels 4 Help
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