Tuesday 15 October 2013

Skoda Octavia : Review

The Skoda Octavia is back in India in its third iteration. The D segment sedan holds a lot of promise with a complete overhaul to both the exteriors and interiors based on the Vision D concept. The new car from Czech carmaker has a seeming resemblance to the 2013 European Skoda Rapid, but is premium of the two and also a brand in itself.

Skoda Octavia Exterior
Skoda has moved towards softer lines and more rounded edges to give the new Octavia a classier, premium and more modern feel. It gets LED DRLs and front grille with vertical stats that make the front look aggressive. The all-new Octavia is also substantially longer and wider compared to the Laura, which also means that it has more cabin space for the passengers. The tailgate has the two diagonal lines that we first saw on the Rapid along with C-shaped tail lamps and reversing lamps and turn-blinkers in the middle.

Skoda Octavia Headlamps
The interiors have significantly improved with faux wood trim and beige theme, but the overall design is standard and like any other VW group car. The top-end variant gets touchscreen music system, front and rear parking sensors, six airbags, ABS-EBD, ESP, traction control, steering mounted audio controls, power seat for the driver with memory function, rear AC vents and rear sunblind. The rear row gets better leg room; however, like before the under thigh support is not optimum. There are ample cubby holes that double-up as bottle holders at the front, while the space in the rear armrest can be adjusted to fit any size of bottle or even cup. We are glad that Skoda has retained the feature that lets you access boot space from inside the car, hopefully few more cars in India get this feature.

Skoda Octavia Side View
The Skoda Octavia is available in three trims– Active Ambition and Elegance. The 2.0-litre turbocharged diesel TDI producing 141bhp and 320Nm of torque is available across all trim levels. The Elegance version with an oil burner gets a six-speed dual-clutch DSG automatic gearbox as a standard fitment, while it is an optional extra for the Ambition trim. The Active and Ambition petrol are powered by 1.4-litre TSI unit that has a power rating of 138bhp and 250Nm coupled with six-speed manual transmission. The Elegance petrol on the other hand gets a 1.8-litre TSI that is good to churn out 177bhp and 250Nm through seven-speed DSG transmission.

Skoda Octavia Interior Seats
The Elegance petrol is also the only variant to get the independent rear suspension, which drastically improve the ride and handling of the car. The rest of the lineup get two torsion beams at the rear that are actually sufficient in most situations. The decision to use independent suspension on the Elegance petrol hints that Skoda plans to bring the vRS Octavia to India soon, as it uses the same 1.8-litre four-cylinder mill.

Skoda Octavia interior Photo
Skoda has ditched the hydraulic steering from its predecessor for a new electrically assisted one – it is light and precise but the feedback is not that great. The ride is tuned for comfort, so there is a certain amount of body-roll at high speeds but the Octavia takes care of undulations and small potholes with ease. The ground clearance of the luxury sedan is also decent to manage mountainous speed-breakers and jumbo-sized potholes, but entry has to be slow to avoid the bumper hitting the ground.

Skoda Octavia Front view
The handling of the Octavia is positive; you can push this car through the corners really hard. It grips through the corners at high speed and there is minimal under steer, despite this being a heavy front-wheel-drive car. The only issue is that the body-roll will make rest of the occupants a little uncomfortable. Overall, the Skoda Octavia is a competent product which offers European quality and technology, but with a slightly premium price tag – especially for the top-end variants.

Skoda Octavia
Skoda has strategically launched the car before the start of the festive season with a competitive starting price. It competes with the Hyundai Elantra, Toyota Corolla Altis, Chevrolet Cruze, Renault Fluence, Volkswagen Jetta and others in the D-Segment. Also the new car will have to face competition from SUVs and MUVs like the XUV500 and Toyota Innova that are slotted in same segment.

BMW 1 Series : Review

BMW has launched the 1 Series hatch back in India. The smallest of its offerings, the 1 Series is the German automaker’s entry into the premium hatchback segment where it competes with the Mercedes-Benz A-Class and B-Class. The car is 4.2 meters long with a wheelbase of 2.6 meters making it as long as the Honda City.

Design
The BMW is a five seater, five door hatchback. From the front it sports all the signature BMW lines but still has the design of the old grille as the car has not been updated with the new grille design. There is a pronounced hump on the hood that seems to flow into the front windscreen and the A-pillars. While globally the 1 Series is offered in three and five door options, in India we only get the latter.
At the back, the 1 Series looks like a scaled standard BMW design due to it being a hatchback. While the shape of the boot hatch is similar to that of the 3-Series, the tail lights are considerably smaller but still retain the familiar Bavarian manufacturers design language.
The India spec 1 Series is being offered with one petrol and one diesel engine. The former is a four cylinder turbocharged 1.6-litre engine that produces 138PS and 220Nm of torque while the diesel on the other hand is a 2.0-litre engine that produces 145PS and 320Nm of torque.
Both engines have been mated to the ZF eight-speed gearbox that sends power to the rear wheels, giving the 1 Series a proper amount hot hatchback credibility. This is taken even further when we consider the fact that the car has a longitudinally mounted engine and perfect weight distribution. BMW is offering the 1 Series in four variants; 116i (petrol), 118d, 118d Sport Line and 118d Sport Plus.
The car is being assembled for the Indian market via the CKD route at BMW’s Chennai plant. This makes the feature list almost identical to the European spec model. The extensive list includes the BMW’s iDrive system with a 16.55 cm HD LCD display, start-stop function, driver side power-seat with memory function and sunroof, apart from standard safety features like ABS-EBD, airbags and ESP. Rear parking sensors are standard across the range.

Competition
As we had earlier, the 1 Series will compete with the A-Class and the B-Class. Vis-à-vis, the 118d variant is almost Rs 40, 000 cheaper than the Mercedes-Benz A-Class A180 CDI variant but the latter has a few more goodies like GPS, audio controls in the rear arm rest, driver arm rest and leather seats. For the buyers who shop in that price bracket such features do matter and is likely to tip the scales in favour of the A-Class. However, the most noted feature that should put the 1 Series back in the game is that it is RWD as compared to the A-Class which is front wheel drive and this should make it livelier to drive.

Nissan Terrano : Review

Nissan Terrano is the latest entrant to the entry-level utility segment. The new model is based on its French sibling, the Renault Duster, but looks a lot different with Nissan’s SUV design philosophy. The Terrano enters one of the fastest growing segments with not only decent looks and features list, but also with one of the most dependable platforms.
Nissan has concentrated mainly on the looks of the Terrano to distinguish it from the Renault product. Almost every body-panel is different from the hood, to the doors and the tailgate. Unlike the Micra/Pulse this one looks a lot different and one from Nissan’s own SUV range. The grille consists of a lot of chrome with trapezoid chrome strips on either side of a bold logo and dual-barrel square headlamps with blacked-out insides flank the grille. The creases on the bonnet start from the front grille, which also has a silver bash-plate on the other side adding to the overall masculine look. The overall design of the Terrano is similar to that of the new X-Trail and Pathfinder.
The side profile also has bold lines but unlike the Duster’s these don’t curve but are angular. The flared wheel-arches make the Terrano look aggressive, distinguishing it from most of Nissan’s models in India. The doors have two horizontal creases in them that help with the butch look, but it isn’t enough to alleviate the organic lines of the rest of the car. The rear end bears no similarity to any of the Nissan SUVs and it is evident that Nissan has developed a new tail lamp cluster without fiddling too much with the Duster lamps. It gets a chrome garnish to add a premium feel, but the overall appearance is rugged with roof rails and silver skid plates.
The top-end version of the Terrano gets 10-spoke machine-finished petal shaped alloy-wheels, they feel premium but somehow look a little out-of-place on the muscular car. They will probably suit the Duster which is softer of the two cars.
The interiors of the Terrano also look familiar to that of the Duster, but there are a few subtle yet important changes when compared to its predecessor . Nissan has worked a bit on the interior quality and the cabin now feels premium. The music system is also different and this one is more ergonomic and user friendly. However the ORVM adjustment switch is still not easy to use; positioned under the handbrake lever. The rest of the equipment list is pretty much the same including the one-step driver height adjust and orange backlight for the instrument cluster. It also gets a rear AC vent that adds to the comfort of passengers, but it is a tad bit noisy increasing the NVH level. The base XE diesel variant gets all black interiors, while the rest of the line-up gets a beige-black combination that makes the cabin look roomier.
The Nissan Terrano is available in both petrol and diesel guise. The diesel version is powered by the same 1.5-litre dCi engine that powers the Duster and will be available in two different grades – the 85bhp base variant and 110bhp for the top spec version. Similarly, the petrol XL variant gets the 1.6-litre four-cylinder unit churning out 102bhp and 145Nm of torque. Nissan has not fiddled around with the engine tuning or the suspension setup and this means the riding and handling of the Terrano is exceptionally good.
Nissan is offering only one variant (the XL) of the Terrano petrol – it has ABS-EBD-Brake Assist, driver side airbag, music system and front fog lamps. On the other hand the diesel Terrano is available in six variants – the base XE variant has a driver side airbag and power windows. The diesel XL variants have exactly the same features as that of the petrol counterpart and are available in both 85PS and 110PS tune. The XL Plus diesel gets an extra airbag at the front and alloy wheels as well. The top-end XV variants are available only with 110PS output and six-speed manual transmission. The additional features include rear AC vents, rear parking sensors and leather wraps for steering and the gear-knob. The premium version gets leather seats and wood finish inserts on the doors.
The Franco-Japanese consortium has an agreement that the donor car will be positioned below the new model and hence the prices of the Terrano are higher as compared to the Duster. India being a price sensitive market, the difference between the Terrano and its French counterpart is not more than Rs 40,000 even for the top spec variant.
The few things that differentiate the Terrano from the Duster include looks, ergonomics and interior quality – all of which rank high on any buyer’s priority list. This compact crossover competes with the Renault Duster, Ford EcoSport, Mahindra XUV500, Tata Safari Storme, Force One and the Mahindra Scorpio in India.

Saturday 7 September 2013

Repair Insurance

Auto repair insurance is an extension of car insurance available in all 50 of the United States that covers the natural wear and tear on a vehicle, independent of damages related to a car accident.
Some drivers opt to buy the insurance as a means of protection against costly breakdowns unrelated to an accident. In contrast to more standard and basic coverages such as comprehensive and collision insurance, auto repair insurance does not cover a vehicle when it is damaged in a collision, during a natural disaster or at the hands of vandals.
For many it is an attractive option for protection after the warranties on their cars expire.
Providers can also offer sub-divisions of auto repair insurance. There is standard repair insurance which covers the wear and tear of vehicles, and naturally occurring breakdowns. Some companies will only offer mechanical breakdown insurance, which only covers repairs necessary when breakable parts need to be fixed or replaced. These parts include transmissions, oil pumps, pistons, timing gears, flywheels, valves, axles and joints.

Odometer-based systems

Cents Per Mile Now (1986) advocates classified odometer-mile rates, a type of usage-based insurance. After the company's risk factors have been applied, and the customer has accepted the per-mile rate offered, then customers buy prepaid miles of insurance protection as needed, like buying gallons of gasoline (litres of petrol). Insurance automatically ends when the odometer limit (recorded on the car's insurance ID card) is reached, unless more distance is bought. Customers keep track of miles on their own odometer to know when to buy more. The company does no after-the-fact billing of the customer, and the customer doesn't have to estimate a "future annual mileage" figure for the company to obtain a discount. In the event of a traffic stop, an officer could easily verify that the insurance is current, by comparing the figure on the insurance card to that on the odometer.
Critics point out the possibility of cheating the system by odometer tampering. Although the newer electronic odometers are difficult to roll back, they can still be defeated by disconnecting the odometer wires and reconnecting them later. However, as the Cents Per Mile Now website points out:
As a practical matter, resetting odometers requires equipment plus expertise that makes stealing insurance risky and uneconomical. For example, to steal 20,000 miles [32,200 km] of continuous protection while paying for only the 2000 in the 35000 to 37000 range on the odometer, the resetting would have to be done at least nine times, to keep the odometer reading within the narrow 2,000-mile [3,200 km] covered range. There are also powerful legal deterrents to this way of stealing insurance protection. Odometers have always served as the measuring device for resale value, rental and leasing charges, warranty limits, mechanical breakdown insurance, and cents-per-mile tax deductions or reimbursements for business or government travel. Odometer tampering, detected during claim processing, voids the insurance and, under decades-old state and federal law, is punishable by heavy fines and jail.
Under the cents-per-mile system, rewards for driving less are delivered automatically, without the need for administratively cumbersome and costly GPS technology. Uniform per-mile exposure measurement for the first time provides the basis for statistically valid rate classes. Insurer premium income automatically keeps pace with increases or decreases in driving activity, cutting back on resulting insurer demand for rate increases and preventing today's windfalls to insurers, when decreased driving activity lowers costs but not premiums.

Auto Insurance in India

Auto Insurance in India deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicle while driving and also for passengers and third party legal liability. There are certain general insurance companies who also offer online insurance service for the vehicle.
Auto Insurance in India is a compulsory requirement for all new vehicles used whether for commercial or personal use. The insurance companies have tie-ups with leading automobile manufacturers. They offer their customers instant auto quotes. Auto premium is determined by a number of factors and the amount of premium increases with the rise in the price of the vehicle. The claims of the Auto Insurance in India can be accidental, theft claims or third party claims. Certain documents are required for claiming Auto Insurance in India, like duly signed claim form, RC copy of the vehicle, Driving license copy, FIR copy, Original estimate and policy copy.
There are different types of Auto Insurance in India :
Private Car Insurance – In the Auto Insurance in India, Private Car Insurance is the fastest growing sector as it is compulsory for all the new cars. The amount of premium depends on the make and value of the car, state where the car is registered and the year of manufacture.
Two Wheeler Insurance – The Two Wheeler Insurance under the Auto Insurance in India covers accidental insurance for the drivers of the vehicle. The amount of premium depends on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the time of the beginning of policy period.
Commercial Vehicle Insurance – Commercial Vehicle Insurance under the Auto Insurance in India provides cover for all the vehicles which are not used for personal purposes, like the Trucks and HMVs. The amount of premium depends on the showroom price of the vehicle at the commencement of the insurance period, make of the vehicle and the place of registration of the vehicle. The auto insurance generally includes:
Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act.
Liability for third party injury/death, third party property and liability to paid driver
On payment of appropriate additional premium, loss/damage to electrical/electronic accessories
The auto insurance does not include:
Consequential loss, depreciation, mechanical and electrical breakdown, failure or breakage
When vehicle is used outside the geographical area
War or nuclear perils and drunken driving.

Auto Insurance in UK

In 1930, the UK government introduced a law that required every person who used a vehicle on the road to have at least third party personal injury insurance. Today, UK law is defined by the Road Traffic Act 1988, which was last modified in 1991. The Act requires that motorists either be insured, have a security, or have made a specified deposit (£500,000 as of 1991) with the Accountant General of the Supreme Court, against their liability for injuries to others (including passengers) and for damage to other persons' property, resulting from use of a vehicle on a public road or in other public places.
It is an offense to use a car, or allow others to use it, without the insurance that satisfies the act whilst on the public highway (or public place Section 143(1)(a) RTA 1988 as amended 1991); however, no such legislation applies on private land.
Road Traffic Act Only Insurance differs from Third Party Only Insurance (detailed below) and is not often sold. It provides the very minimum cover to satisfy the requirements of the Act. For example Road Traffic Act Only Insurance has a limit of £1,000,000 for damage to third party property – third party only insurance typically has a greater limit for third party property damage. As a result of costly claims, insurance companies can now no longer place a limit on the amount that they are liable for in the event of a claim by 3rd parties against a legitimate policy. This can be explained in part by the Great Heck Rail Crash that cost the insurers over £22 million in compensation for the fatalities and damage to property caused by the actions of the insured driver of a motor vehicle that caused the disaster.
The minimum level of insurance cover commonly available, and which satisfies the requirement of the Act, is called third party only insurance. The level of cover provided by Third party only insurance is basic, but does exceed the requirements of the act. This insurance covers any liability to third parties, but does not cover any other risks.
More commonly purchased is third party, fire and theft. This covers all third party liabilities and also covers the vehicle owner against the destruction of the vehicle by fire (whether malicious or due to a vehicle fault) and theft of the vehicle itself. It may or may not cover vandalism. This kind of insurance and the two preceding types do not cover damage to the vehicle caused by the driver or other hazards.
Comprehensive insurance covers all of the above and damage to the vehicle caused by the driver themselves, as well as vandalism and other risks. This is usually the most expensive type of insurance. For valuable cars, many insurers only offer comprehensive insurance.
Vehicles that are exempt from the requirement to be covered under the Act include those owned by certain councils and local authorities, national park authorities, education authorities, police authorities, fire authorities, health service bodies and security services.
The insurance certificate or cover note issued by the insurance company constitutes legal evidence that the vehicle specified on the document is insured. The law says that an authorised person, such as the police, may require a driver to produce an insurance certificate for inspection. If the driver cannot show the document immediately on request, and proof of insurance cannot be found by other means such as the Police National Computer, drivers are no longer issued a HORT/1. This was an order with seven days, as of midnight of the date of issue, to take a valid insurance certificate (and usually other driving documents as well) to a police station of the driver's choice. Failure to produce an insurance certificate is an offence. The HORT/1 was commonly known – even by the issuing authorities when dealing with the public – as a "Producer".
Insurance is more expensive in Northern Ireland than in other parts of the UK.[vague][citation needed]. In 2010 the cost of car insurance rose by an average of 33%.
All motorists in the UK are required to prominently display a vehicle excise licence (tax disc) on their vehicle when it is kept or driven on public roads. This helps to ensure that most people have adequate insurance on their vehicles because an insurance certificate must be produced when a disc is purchased, although the insurance must merely be valid at the time of purchase and not necessarily for the life of the tax disc.
The Motor Insurers' Bureau (MIB) compensates the victims of road accidents caused by uninsured and untraced motorists. It also operates a number of Motor Insurance Databases, which contain details of every insured vehicle in the country and acts as a means to share information between Insurance Companies.
On 1 March 2011 the European Court of Justice in Luxembourg ruled that gender could no longer be used by insurers to set car insurance premiums. The new ruling will come into action from December 2012.[citation needed]
In June 2011 a new law known as Continuous Insurance Enforcement came into force in the UK meaning that a vehicle must have a valid insurance policy if it has a tax disc, whether or not it is kept on public roads and whether or not it is driven. If the car is to be "laid up" for whatever reason, the tax disc must be surrendered and a SORN declaration completed to say that it is off the public roads.

Auto Insurance

Vehicle insurance (also known as auto insurance, GAP insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions.
In many jurisdictions it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly.
Several jurisdictions have experimented with a "pay-as-you-drive" insurance plan which is paid through a gasoline tax (petrol tax). This would address issues of uninsured motorists and also charge based on the miles (kilometers) driven, which could theoretically increase the efficiency of the insurance, through streamlined collection.

Friday 6 September 2013

How Tax Deduction Works ??

Donating your car to charity can result in significant tax savings if you include it in your charitable contribution deduction. However, doing a little planning will ensure that you maximize the tax savings of your donation. The Internal Revenue Service (IRS) requires you to calculate your deduction in one of two ways, depending on how the charity uses your donation. Deductions for cars the charity sells are limited to the sales price. In all other cases, you can use the car's fair market value.

Step 1: Find out how much the charity sold the car for
Use the price the charity obtains for your car in a sale as the amount of your deduction. For example, if the charity sells the car at auction for $3,000, your deduction is limited to $3,000, even if the fair market value is $4,500. However, if the charity sells the car at a discount to a needy individual or keeps the car for its own internal use, then you can claim a deduction for its fair market value.

Step 2: Determine the car's fair market value
The IRS suggests that you use a reputable used-car price guide to calculate your deduction when using fair market value. For example, go to your local library and obtain a recent copy of the Kelley Blue Book. Search the private party prices for your vehicle based on its make, model and overall condition. This type of search can be done on the Internet as well.

Step 3: Claiming the deduction
Report the amount of your deduction on line 17 of Schedule A. Since you can only claim a deduction for your car donation if you itemize, the total of all your eligible expenses on Schedule A must exceed the standard deduction amount for your filing status.

If you use TurboTax to prepare your taxes, we’ll help you determine which filing status will get you the biggest tax savings.

Step 4: Additional forms you'll need
Complete Form 8283 if your car donation deduction is more than $500. If your deduction is between $501 and $5,000, you must complete Section A. If your deduction is greater than $5,000, you must complete Section B. If you complete Section B, you must also obtain a written appraisal as documentation.

Again, if you use TurboTax, we’ll ask simple questions and fill in all the right forms for you.

Tips

If the charity sells your car sells for $500 or less, you can deduct $500 or your car’s fair market value, whichever is less. For example, if your car is valued at $650 but sells for $350, you can deduct $500.
Most charities will report the sales price of your car to you on Form 1098-C.

DONATE CAR TO CHARITY CALIFORNIA

Throughout the United States, Charity Cars is accepting car donations. California residents wishing to make a vehicle donation can do so at any of the participating locations. To find a participating sponsor nearest you, contact Charity Cars at 1-800-CharityCars.

Convenient

To make car donations, California residents can contact Charity Cars by phone or fill out at online car donation form. When your donation information has been received, Charity Cars will have a representative contact you to schedule a convenient time for your vehicle donation to be picked up. Charity Cars will work with you and your schedule to find the best possible time to pick up your vehicle. Charity Cars will have your vehicle towed at no cost to you. All fees or charges associated with the towing of your car donation will be paid by the Charity Cars organization. Making a car donation is simple and free. To find out more on how you can donate your vehicle, visit the Charity Cars website. From the homepage, click the link “Donate Vehicles Online.” You'll be directed to an online application where you can fill out to submit your donation. You'll be contacted within 48 hours to set up a convenient time for Charity Cars to pick up your vehicle donation.

Helping Families

Charity Cars helps families across the country with car donations. California vehicle donors are helping these disadvantaged families find new hope. Charity Cars uses the car donations California donors give to help families across the United States. Families helped by the Charity Cars free vehicle program include:

• Victims of domestic violence
• Victims of natural disaster
• The medically needy
• The working poor
• Families transitioning from public assistance to work
• Families living in transitional living shelters
•Military families who have no means of transportation
• Other non-profit organizations in need of transportation to continue serving their communities

Many of these families do not have their own transportation. Those who do have their own vehicle can not always afford vehicle maintenance. Their vehicles are unreliable and unsafe to operate on the road. These families must rely on others to drive them to work, take their children to school and make trips to the grocery store. Disadvantaged families are recommended to the Charity Cars program by members of the community who see their needs and truly believe a free vehicle could give them the chance to turn their lives around. Many of the families who have received a free vehicle from the Charity Cars program have said the experience has completely changed their lives. They have a higher self esteem and more ambition to take charge of their own lives. Charity Cars uses the car donations California donors give to the program to provide reliable transportation to disadvantaged families. Your donation could change someone's life.

Tax Deduction

Although advertised as an easy way to dispose of an old car, donors need to fulfill certain post-donation requirements to qualify for the tax deduction, such as obtaining a written acknowledgment of the car's subsequent sale by the charity,[citation needed] and itemizing tax returns instead of taking the standard deduction.
For vehicles valued at less than $500, the deduction amount comes from the donor's own estimate of the car's value, even if the charity receives less money from its sale. Deductions greater than $500 are limited to the proceeds of selling the vehicle, usually at auction. The U.S Internal Revenue Service advises that starting in 2005:
The rules for determining the amount that a donor may deduct for a charitable contribution of a qualified vehicle, including an automobile, with a claimed value of more than $500 changed at the beginning of 2005 as a result of the American Jobs Creation Act of 2004. In general, that Act limits a donor’s deduction to the amount of the gross proceeds from the charity’s sale of the vehicle.
For vehicles valued at over $500, taxpayers are required to attach the charity's written acknowledgment to their tax return.
Car donation schemes in the UK are slightly different to those operating in the United States and only established themselves as a valued source of income for UK charities in January 2010, led by Give a
car – a non-profit organisation. Operating as a non-profit organisation allows charities to avoid the large overheads created by profit-making car donation companies. In addition, whereas car donation in the US has been incentive's through tax breaks, in the UK there are no such tax benefits to donating your car.

Benefits of Car Donation

Many charities run donation programs. All of them accept car donations, such as Goodwill, Salvation army and even the American cancer society. Many charities will use your car donation directly to transport volunteers and supplies to areas that need help. Some even have their own car lots which sell the donated cars but many have their donations processed through auto auction companies. Many processing companies also collect and sell donated cars and distribute the money to a charity the donor indicates. The processing company typically takes a percentage of the sale value of the car, but these programs allow charities without their own facilities or staff dedicated to fund raising to benefit from vehicle donation programs.
Ideally, donors should also investigate how much money from the sale of the car goes to the auction processor and how much actually benefits the charity's programs, as opposed to its administrative overhead.
Some critics have claimed that car donations are essentially a tax shelter. However, non-profit organizations in the US have come to rely increasingly upon the revenue from car donations. This type of donation has become increasingly widespread; in 2000, 733,000 U.S. taxpayers reduced their taxes by $654 million.

Practice of Car Donation

Vehicle donations in America are operated in a wide variety of plans, ranging from highly-organized and professional-grade not-for-profit, national, or local charities to scrap yards, haulers, tow-truck companies and salvagers who establish programs that may support a charity. According to Charity Navigator, the guidance of the rating agencies concerning car donation programs, where the charity receives a flat fee for the use of their name by a third party, versus program management by a third party,there are some questionable companies who contract to use a nonprofit’s agencies name and logo to raise funds and then just give them a flat fee unrelated to income or performance. This is frowned upon by rating agencies and the government. However, a percentage return program is viewed positively if the nonprofit receives more than 50% of the generated income. Programs that engage a third party, but with a "cost maximum cap" involved, such as with national charities like the Society of Saint Vincent de Paul, performance in this area is exemplary, with 70-80% on average being returned to the nonprofit.