With thorough research and a little luck, you could wring $1,000 or more out of your junk car. The metal alone could yield $200 a ton when scrap metal prices are high. Individual parts in popular models of cars also could fetch several hundred dollars from a salvage yard. You might even find someone to buy the car in full at your preferred price through online resources like eBay or Craigslist.

On the Other: Give It Away For A Tax Break

Donating a junk car to a charity brings value in the form of a tax deduction. Following a 2005 change in U.S. tax laws, you can deduct only the amount for which the charity sells the car, not the actual value of the car. You also could find a charity that uses the car or its parts directly, which lets you deduct the full value. Depending on the car's value, this could mean several hundred dollars in reduced taxes come April 15.

Bottom Line

Total value will vary, but your junk car usually is worth the most if you sell it privately or find a reputable, licensed salvage yard to buy it. If the scrap metal market is bad, if the car is in abysmal condition, or if you simply don't have the time to research local salvage yards or haggle with buyers, your junk car's value at most will be a few hundred dollars off of your taxes.

Source:

Evansville Courier & Press; "That Pile of Junk Behind the Barn is Worth a Small Fortune"; Len Wells; May 18, 2008

Edmunds.com

Resource:

Tips for Selling Your Vehicle