When You Donate Your Wholesale Vehicle Inventory, Everyone Wins!
Vehicle wholesaling has come a long way in the digital age. But even cutting-edge apps won’t guarantee that you’ll be able to quickly move your cars, much less turn a profit on them.
If your lingering wholesale inventory is eating away at your bottom line, consider donating those vehicles to a non-profit organization such as Newgate School in Minnesota.
First Things First: How Does My Dealership Benefit from Donating?
The vehicle wholesaling process has a unique set of risks. Sometimes dealers don’t disclose all of the potential issues with their used cars, and then you end up with a costly problem. Or maybe you’ve got some vehicles that aren’t attractive to buyers. While selling them at a loss is an option, it’s worth it to consider donating your wholesale inventory to a non-profit.
It’s Less of a Hassle to Get Rid of Old Inventory
Look for a non-profit organization that accepts vehicles whether they’re running or not. Many organizations, like Newgate School, will come and pick vehicles up. Still, it’s always a good idea to confirm it with them first, especially when multiple cars are involved. Newgate can also save you some administrative paperwork by handling title transfers. So, if you’re looking for a virtually painless way to get old inventory off of your books, give the school a call.
Tax Benefits
Naturally, when you’re in business, cash is king. But if you’ve got used cars you can’t move, why not donate the vehicles and get a tax deduction? When you donate your wholesale vehicles to Newgate School, the amount of your tax deduction will depend on whether the car becomes a sale or a donation.
- If Newgate sells the car, the amount of your tax deduction will be equal to the amount for which it sold.
- If the vehicle is donated through its charitable program, the deduction will equal the fair market value.
What is Newgate School?
Newgate is a 501(c)(3) non-profit vocational school located in the Twin Cities area of Minnesota. The school gives young adults from disadvantaged homes a way to train for stable, well-paying jobs. Through training and charitable giving programs, Newgate offers people an opportunity to achieve self-sufficiency.
Auto Body and Auto Mechanic Programs
The school provides auto mechanic and auto body training at no cost. Students get hands-on learning while reconditioning and repairing donated used cars, SUVs, trucks, and vans. In addition to the physical aspects of auto repair, trainees also learn fundamental administrative tasks such as creating repair estimates. Once repairs and refurbishments are complete on donated vehicles, we can sell them—which is how Newgate funds its administrative and educational activities—or we can use them to help local working mothers.
Offering Working Single Mothers a Helping Hand
Recognizing that public transportation and ridesharing services are time- and cost-prohibitive for single working mothers, Newgate created a program to provide reliable transportation. Newgate School donates several of its refurbished vehicles every year through their “Wheels for Women” program.
Do Good for the Community and Your Business
If you’re looking for a better way to get rid of your wholesale vehicles, donating them to a non-profit such as Newgate School is a great option. By not having to market these vehicles, you will save your business time and money. And the tax deduction on the vehicle donation makes the deal even sweeter for your business. Plus, your donation to Newgate helps low-income folks around Minneapolis-St. Paul to have a better chance at financial stability and independence. Ready to make a difference in the community and to your bottom line? Find out how you can donate your wholesale vehicles today.