When Donating Make Sense

Although most rental car agencies have systems in place for disposing of out-of-service vehicles, the options are often limited. Additionally, the process can often take valuable time that the rental agency operator could use to focus on the business of auto rental.

But now there is a new option. Moreno Valley, Calif.-based National Charity Support takes the headache out of the vehicle donation process, helping auto rental operators dispose of vehicles, get a better tax deduction, receive some positive public relations for their business, contribute to a good cause and reduce the liability that can be involved with transferring a vehicle title.

The Benefits of Donation

When a rental agency donates damaged vehicles to charity, the agency often receives a very small tax deduction, since the vehicles are worth so little money. A National Charity Support (NCS) reconditioning program can increase the value of the vehicle, which increases the amount of tax deduction the auto rental agency receives.

“We deal with quite a few financial institutions where it makes more sense for them to donate the vehicle rather than dispose of it,” says John Schuetz, executive vice president of NCS. “It works equally well, especially for the self-insured auto rental companies. It makes so much financial sense because they’re not going to get anything for these cars, and again it becomes another liability.”

Joe Blanco, co-owner of NCS, gave an actual example of a high-mileage SUV that a rental agency needed to dispose as an example of the benefits of vehicle donation.

“They’re not going to get much for that now. They’d be much better off having us recondition it and send it to Mexico or send it to Columbia,” Blanco says. “They will see a much higher return.”

CONTINUED:  When Donating Make Sense
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