You can determine the fair market value of your car donation by examining a variety of factors including the car's condition and features and your location. After determining its value based on a variety of factors, you need to check the IRS rules to make sure you use the proper amount on your taxes.

Usage

The model year and mileage on your car have a significant impact on the value of the donation. The older your vehicle and the more you have used it, the lower the value will be.

Condition

The better the condition of your car the higher its value will be. Keep records of any maintenance work, new tires, oil changes or other repairs you have recently completely to improve its value.

Geography

Where you are donating your car affects the value of the car based on geographic conditions. For example, your all-wheel drive car will be worth more in Maine, where there is a lot of snow, than in Florida, where snow is relatively rare.

Time Frame

The season of year that you are donating your car will affect its value. For example, a convertible will be more valuable in the summer while a car with all-wheel drive will be worth more in the winter.

Cars That are Sold

If the charity uses your vehicle instead of selling it, or donates it to a needy person, you are allowed to use the fair market value of your vehicle for your deduction. If the charity sells your vehicle without using it, you are only allowed to deduct the sales price. For example, if you donate a car with a fair market value of $3,000 but it only sells for $2,200, you can only deduct $2,200.

Exceptions

If the charity provides documentation that your vehicle was worth $500 or more but sold for less than $500, you can claim $500 for your deduction. For example, if you donated a car with a fair market value of $700 but it sold for only $300, you could deduct $500 if the charity documented that it was worth at least $500.

Source:

IRS: A Donor's Guide to Vehicle Donations

Edmuds: 10 Steps to Selling Your Car

Edmunds: Does Charity Car Donation Still Make Sense Under Tougher IRS Rules?