Cash Auto Salvage

Junking a Car: If I Sell My Car Do I Pay Taxes?

if i sell my car do i pay taxes

28% of Americans state that high taxes are their main source of stress.

So you may be asking, if I sell my car do I pay taxes?

Are you worried because you’re not sure if that extra cash will be taxable income? We have you covered. In this article, we break down what you need to know.

Want to learn more? Keep reading!

If I Sell My Car Do I Pay Taxes?

Before we answer this question, let’s look at what taxable income is. This is what the income tax system imposes the tax on.

This varies from country to country. Some systems decide that certain types of income aren’t taxable. Others base it on the current period, and some on prior times.

Taxable income is the income of the taxpayer, including corporations and individuals.

Income Tax Responsibility When Selling Your Secondhand Car

The Internal Revenue Services (IRS) considers all personal vehicles as capital assets.

If you happen to sell your car for less than the original price, you have a capital loss. You won’t have to report this on your tax return. If you sell it for more than you paid, you have a capital gain. You will owe taxes on it.

Make sure you keep your receipts of what you paid for the car. Get a signed receipt for when you sell it as well. You want to have all your documentation ready for tax season.

Do You Have a Capital Gain?

Sit down and find out what the original price of your vehicle was. Go dig out your sale contract or Bill of Sale.

Subtract the taxes connected with the sale. This could include wheel tax and sales tax. Add any vehicle improvement expenses to this changed sale price. This shouldn’t cover regular maintenance costs.

Improvements are things like new speakers or a new paint job. Make sure you keep track of your paperwork for these improvements. You want to have exact numbers of what you spent and proof if needed.

Take away what you sold the car for from this adjusted price. If you bought the car for $10,000 and sold it for $4,000, you would have a capital loss of $6,000. You won’t have to report this to the IRS.

If you have a capital gain, then you will need to report it. If you bought your car for $12,000 and sold it for $14,000, then you have earned a $2,000 capital gain. Report this on your tax return.

Plan and Prepare for Down the Road

Things can build up in life and stress you out. Unpaid debt always hangs in the background, silent but stressful. Don’t forget about your secondhand car. Make sure you have all your paperwork ready before you decide to sell it.

Find out what the original price is and consider what you will sell it for.

Sell Your Car When Your Income is Low

Your capital gains rate determines your marginal tax rate. Your income is going to determine what your marginal tax rate will be.

If you sell your long-term capital gain asset later when your income is lower, you might be able to save some money.

During a season when you lost a job or are getting ready to retire, consider selling your car then. This would cut your capital gains tax rate if you did have a capital gain when you sold the car.

How to Reduce Your Taxable Income

Many tax-saving strategies will help you qualify for a lower rate. If you maximize your credits and deductions before filing your tax return, this will help. When donating goods or cash to charities, you will receive a receipt.

How to Determine the Value of Your Car

If you’re considering selling your car yourself, you’re going to need to figure out its value. You may have a rough idea of what it’s worth, based on what you paid when you first got it.

Consider the condition and what other people are listing similar cars for online.

Go onto popular for-sale websites and type in the model and year of your vehicle. This will help you understand what the rate is for your type of vehicle. You’ll get an idea of what people are willing to spend and sell their car for.

Now if you have made some recent improvements to the car, this can up the price and value of your vehicle. Don’t forget about those additions. Keep your receipts so you can show an interested customer.

Read this article we wrote about where you can sell your car!

Go to a Local Car Dealership

Visit a dealership and ask what they would pay for your car. Research beforehand and find a dealership that sells your brand of vehicle. They may be more willing to buy your vehicle and give you a sound deal.

Researching prices and dealerships will help you arrive at a price. Know that when you get ready to sell it, people will try and negotiate with you, trying to lower the cost.

Accept the amount that you have chosen. Don’t budge from it unless it is only a small difference. You want to make sure you’re getting your money’s worth.

Finally, remember how the taxes work for used cars. If you sell it for more than what you paid for, you will have to pay taxes on it. If it’s sold for less than what you paid for, you won’t have to pay taxes on it.

Contact Us Today

We hope you found this article helpful. People often have the question, if I sell my car do I pay taxes? Make sure you consider this when you arrive at the value and price of your vehicle. Keep all your receipts for tax season.

Do you have a car that you’d like to sell? Contact us today. We would love to chat with you!

Cash For Cars: 10 Tips to Sell Your Car Fast

tips to sell car fast

A car’s value depreciates rapidly and it’s almost twice as faster now than in 2014.

Too much supply plays a huge factor. This means that the older your car, the harder it will be to sell it at a price you want.

Getting a good amount of cash for cars you’re ready to get rid of might be harder now. But it will still be worthwhile in the end if you’re smart in making deals.

So how can you be more effective at selling your car? How can you make the most profit?

Pay attention to these 10 tips I’m about to tell you, and you’ll sell your car in no time.

1. Prepare Yourself

You’re going to go through this, but are you ready?

Selling anything means being able to answer questions. In the case of a car, you should also prepare to meet up with strangers asking to inspect it. Be ready to clear your schedule or drop appointments if need be when such request comes up.

If you know that you can’t commit, why not ask a trusted family member or a friend to do it for you? They can make negotiations on your behalf or you can ask for a set price. Make sure they know your car – even the tiny details like dents or the new parts.

But if you’re willing to do anything to get cash for cars prepares a sales pitch. Have the answers to these questions:

  • What’s the fuel economy like?
  • How did it perform for you?
  • What are the safety features?
  • Are there any recalls in the past associated with this model?

Know that selling a car will last a few weeks, especially when you’re making repairs. Unless you have a Kia Sportage, named fastest selling car of 2017, don’t get frustrated at the wait.

2. Get Everything Ready

You got your sales pitch, your availability is not a problem… now what? Make your car look handsome, of course.

You can still get an ample amount of cash for cars that may not look its prime by cleaning. For the most profits, take the effort to wax it and wash the floor mats.

It’s also a good time to take the car to a mechanic and ask for a full report. It may alert you to unknown issues and let you know all the repairs you need to do.

If something’s broken, you can choose to fix it so you can set a higher price. You can, however, choose not to. Show the report to the potential buyers so they know what they’re getting into.

While your car is being groomed, you can start preparing the documents.

Each state has different requirements when selling a car, but it tends to involve:

  • Title
  • Bill of sale
  • Release of liability
  • Warranty

Check out your state’s requirements before you put your car up for sale here. Aside from these, you can also include the car’s maintenance records.

3. Research

Did you know that a car’s value drops 11% the moment you drive it for the first time? If you aim to get quick cash for cars you own, you have to do your research as soon as possible.

After a year, the value decreases by 19% percent on average. When you get to five years, the car will have lost over half of its original value.

So how much is your car worth? This is where research comes in.

Check out the other cars for sale in your area with the same model as yours. How much are they selling? Are there any improvements done? What’s the extent of damages? What’s the mileage?

Figure out the average and from there, you can estimate how much your car is worth. It’s also worth it to check online resources to get a good idea of the price you can set.

4. Make Improvements If Possible

Your car value isn’t what you’re hoping it to be? Don’t worry, there are ways to increase it if you are willing to make the time.

Cleaning your car is a must, but a full-on detailing job can increase the value by several hundred dollars. You can do it yourself, but pay attention to the tires, compartments, windows, and mats. If the floor mats are old and ugly, consider getting new ones.
The tires are also a good area to improve. Replacing them with an inexpensive set can boost the value. Shine the rims and your car will look brand new.

You might also have to shell out money if you want to have the car repaired. Dents and scratches can lower the value, as do some minor issues.

Don’t spend a large amount of cash for cars needing major repairs. Rather, work on those small issues, and the payoff will be big. You can even work on them yourself if you’re a handyman. If not, it’s better to let a professional handle it lest you aggravate the problems.

5. Price Accordingly

Be smart on the pricing – don’t set it too high nor too low. A high price will turn away potential customers and a low price might be suspicious. Many people live by the rule, “If it’s too good to be true, it likely isn’t.”

You can be firm with the price, which you should mention on the ad, or you can have a little wiggle room. Prepare for the negotiations because people will ask for the last price anyway. Not a lot of people are willing to pay a lot of that are already used.

On that note, decide on the least amount you’re willing to sell the car for and stick with it. Don’t entertain lowballers and don’t hesitate to reject an offer if it falls below the amount.

You know your car and you’ve done your research, so you know best how much it’s worth. Giving in to the first offer you get will only make you regret later.

A nice trick you can do is set the asking price a little higher than what you expect to get. This way, you’re more likely to get more offers for negotiations. You’ll also be more receptive, which can make the conversation going.

6. Take Good Pictures

This is the fun part. If you’re selling online, this step is a must. But make sure to take quality pictures to generate interest in your ad.

Take your car out of the garage and take it somewhere bright and park it where you can use a beautiful backdrop. You can take photos with your camera phone, but if you’ve got a better camera, use it.

Take a photo of the front, the sides, and the rear. Position the car’s full image into the center of the photo for better results. Get a close-up of the best features or the issues like dents and scratches.

Photograph the interior as well: the seats, the dashboard, and the floor mats. Include photos of the trunk, the engine, and the wheels.

Take your time in capturing the perfect pictures. Play with angles and don’t let the sun’s glare ruin your photos. Your car needs to look good, but not too perfect that you’ll want to hide the flaws.

Remember to take the pictures after you’ve cleaned and repaired the car! This way, you’ll still make cash for cars past its prime.

7. Write a Compelling Ad

A good advertisement is simple in design, but it provides all the details that a buyer needs to know. As a rule of thumb, include this information:

  • Exact year and model of the car
  • Good photos
  • Bought brand new or second hand?
  • Mileage
  • Is it running or is it junk?
  • History of repairs
  • Repairs that need doing
  • New parts, if any
  • VIN number
  • Asking price

As for the asking price, make sure to state whether it’s negotiable or not. Be familiar with this lingo and what they tell the buyers:


This means you’re not likely to give in to pressure. You’re willing to take the time to wait for someone who’ll buy the car for the indicated price.

Push for a Better Offer

Get ready to entertain offers below the stated price. You can put this if you’re in a hurry to get cash for cars.

Needs to Go

This means you’re more likely to sell it to the first offer you get. Why not consider tip #9 if you can take any amount of cash for cars ASAP?

8. Get the Word Out

Once you’re done preparing and taking photos, it’s now time to let the world know you want to get cash for cars.

The internet is a good place to start. Check out forums and advertisement websites. Post your compelling ad on where you did your research if you did it in a diligent manner.

You can also take your social media account to advertise your car. Write a simple status about your intent to sell a car – pictures and description included – and have your friends share it. There are also groups on Facebook where you can advertise for free.

You can also put the ad on the car itself. Stick a “For Sale” sign on your car with your contact information if you plan to still use it to drive around. You may be able to catch the eye of a potential buyer that might not see it on the internet.

On the last note, let everyone you know that you’re letting go of your car. A co-worker may get interested, or they may be able to refer you to someone who is willing to hand over cash for used cars.

9. Approach a Buyer Paying Cash for Cars

If you want an easy way to get cash for cars, you can talk to a local dealer instead. Note that you’ll still need to do the first five tips if you want to make a nice profit. But, there are pros and cons to this.

The number one benefit is that you’ll sell the car right away – no ad posting, no communicating with different buyers, and no hassle of dealing with scammers. Dealerships also handle the paperwork for DMV, which makes the transaction faster.

But you may have to settle for less than your car’s value. You can make up to 15% more by selling it yourself, according to KBB. It’s up to you, though, to decide if that 15% is worth the hassle and time of organizing the sale yourself.

Another way to get cash for cars is by selling it to an auto salvage company. You can trade in old or totaled cars and still make money.

This has the same benefit as the dealership in a way that you won’t have to go through the selling process. You can get your money in an instant and they often have better offers than dealerships!

10. Negotiate and Complete the Sale

Talking to a potential buyer? Great! You’re now in the final stage of selling.

Everyone who contacts you or whom you contact will negotiate for a lower price. If you follow tip #2, the outcome will be more favorable because you might get what you want or close to it. Don’t forget the least amount you’re willing to go for, and the negotiation will be a little easier.

This is also the part where you’ll take about payment and delivery. This is crucial. This is where they’ll likely pressure you into making a hasty decision, like taking the check or driving to a suspicious location.

Steer the conversation to a conclusion that’s favorable for both you and the customer. Set a time and place you’re both comfortable in to make the transaction. You can also consider using an escrow service if the client wants the car delivered.

Get Cash and Sell Your Car Quick Today

When you receive the cash for cars, it’s time to do the paperwork, such as signing over the title, submitting the Release of Liability to DMV, and more. See the second tip for the documents you need.

These tips will save you some headaches.

If you’ve decided to forego the stressful steps and sell your car to a junk car buyer instead, contact us to get a free quote. Visit us at our numerous locations across all states to get cash for cars now!

Sell Junk Cars For Cash Anywhere Across The Nation


Got an old ‘hunk of junk’ in your backyard? What about that car in your garage that just won’t start for anything? You might even have a car lounging on your curbside that’s just been there… for the past few years! If you’re in this situation, you’re not alone. Lots of people have had to deal with junk cars at some point in their life. Only then, they didn’t know that they could actually sell those junky cars for cash.

Yes, you can actually turn that potential scrap heap into cash for yourself. Why let your junk car’s value continue to fester when you can get cash out of it?

Selling your junk car for cash

You can sell junk cars for cash anywhere across the nation—you just need to know where to look. And, naturally, there are several ways you can sell a junk car for cash.

Some people part out their cars, while others have no problem having selling their cars to a service that buys up junk cars and gives their former owners cash. Cash Auto Salvage is a company that handles just that—though, before you look at our services, we’re not done talking about selling them for cash here.

Before you even consider selling your junk car, you need to learn the true value of that same car. I mean, would you even buy a used car without knowing its true value? No, of course not! So, you pretty much have to take that same methodology in mind when you’re selling your junk car.

Wouldn’t you want to get the most money out of that junk car? I think so. So, if you’re thinking about selling off your junk car, Cash Auto Salvage has some tips to help you get prepared before you do so. If you’re interested in working with us to get some cash out of that car, you’re free to check out our website.

Tips for selling your junk cars anywhere across the U.S.

There are several steps you need to take care before turning over that car to a company that specializes in buying junk cars. Thankfully, all of those steps are relatively simple to plan.

Become the vehicle’s titleholder or owner. You can’t sell a junk car without owning the vehicle, since many establishments that do buy junk cars can’t buy it from you if you don’t. So, before you do business, take care of that business!

Determine the value of that vehicle. You can always look up the current market value of your junk car online. When you find that particular figure, you’ll also have to compare and subtract that figure against the costs for a potential repair. The result you get is usually the current value of that vehicle. Knowing that value helps you understand how much you can get out of a company that will give you cash for that same vehicle.

Start looking around for companies. Now that you know the value of your junk car, it’s best to start shopping around for companies who may want to buy up that junk vehicle. Some places pick up junk cars for free, while others do charge based on the condition of the vehicle. You can always contact Cash Auto Salvage, too, if you’re interested in working with us!


3 Things Every Owner Needs to Know About Scrap Prices for Cars

scrap prices for cars

You’ve been looking at the junk car that’s been taking up space in your garage for months, wondering how much cash for junk cars Harrisburg PA salvage yards will pay. Well, stop wondering and start looking up scrap prices for cars.

Cars are the most recycled items in the U.S., with more than 25 million tons of materials recovered from the 12 million cars recycled annually. Not only is that good for the environment, but it’s good for car owners who get a little extra cash in their pocket. Plus, you can say goodbye to that junk car once and for all.

So to get the most for your vehicle, here are some things you need to know about scrap prices for cars:

Waiting means less money for your junk car
It’s common for people to hesitate before selling their vehicle, regardless of its condition. Some people may have an emotional connection to their car that prevents them from selling. Others think they may be able to repair or restore their car once they have the time and money. Whatever the reason may be for waiting, it’s important to understand that the longer you wait to get cash for junk cars, the less it will be worth.

You can get more money if your car is drivable
For example, at most salvage yards giving cash for cars in York PA, cars that are still in working condition are guaranteed to be worth more than those that are not. This is because it does not require extra work like towing, saving both time and money.

You are more likely to get better scrap prices for cars that are drivable if it can be sold at an auction. Keep in mind that unless your car is in excellent condition, it will most likely be part of a group of cars being sold. If that’s the case, try to manage your expectations.

Salvage prices VS. Scrap prices for cars
One of the most important things to keep in mind when looking at scrap prices for cars is that scrap metal prices don’t include parts of the car that are still useful. This can be things like the alternator, starter motor, new tires, or other parts that can be easily removed and sold. Remember that most salvage yards do the labor of stripping cars themselves. Since they are taking most of the risk in doing so, you may not receive the entire value of the parts they sell.

Each year, the owners of 27 million cars have to say goodbye when their vehicles reach the end of the road. So when the time finally comes, don’t wait too long to junk your car. Consider how much you can get if it is still running, and keep in mind that scrap is worth less than salvage prices.

While saying goodbye to a car can be stressful and bittersweet, keep these scrap prices for cars tips in mind to maximize your payout.

Selling 101: How Junk Cars Are Sold at Auctions

cash for cars

Car accidents happen. When they do, it is important to know what your next steps as the owner of the vehicle are. If your car is like one of the 27 million others who have reached the end of their use or have significant accident damage, you may be looking for scrap prices for cars. Keep in mind that cars are the most recycled item in the U.S., with 12 million recycled each year. Yet most people have no idea how these junk cars make it to the auction. If you have questions about the junk car auction process (or just want to get cash for cars), then here is what you need to know about how auto salvage auctions work.

From the Insurance Company to the Auction House
After a major car accident happens, insurance companies typically take ownership of the vehicle if it has been confirmed totaled. In most cases, the insurance company has already established a relationship with a particular salvage yard and will use them to get cash for cars that are damaged beyond repair.

Analysis, Reporting, and Information
Before a car is sold at an auction, it is fully analyzed and a report is generated by the auction. The report itself includes images, VIN information, as well as major and minor defects. The more information that is included in the report, the better the salvage yard will be able to assess the value of the vehicle. After analyzing the car and getting information on all its used parts, the vehicle is placed on a lot and the auction’s website.

Let the Bidding Begin
Here in upstate New York, many salvage yards that give cash for junk cars Buffalo NY residents put up for sale use “proxy bids” to determine their bid amount. These types of bids allow someone to enter a bid without being an active participant in the live auction itself. If the proxy bid remains the highest bid after all bids have been placed and the auction ends, that bidder wins the vehicle and it is towed to the salvage yard.

Many of the cars auto salvage yards sell at auctions are often stripped and recycled for metal materials. In fact, every year the U.S. and Canada recycle enough steel to make 13 million new vehicles. If you are considering getting cash for cars you are no longer using, choose a salvage yard and place your cars in an auction.