What Happens to Donated Cars After They Are Sold at Auction?

Donating a car is one of the best ways to support the community. You can always choose the organization you want to donate to your vehicle. While donating, you must have many questions in mind, including:

·   What does the charity do with donated vehicles?

·   How does the auction process for donated cars work?

·   What happens with the money gained by the charity?

And many more!

Having answers to all these queries is essential to enjoy a smooth and hassle-free process of donated car auction and afterward.

In this post, we are going to delve into these details head-on so you know what happens to your donated car after the auction.

Donated Vehicles Auction

One way that the donated car process works is by selling the donated vehicles to wholesale auctions across the region. The proceeds gained from each car sale are forwarded to the charity of your preference. The donor then deducts the sale price of the cars from relevant taxes.

You can better understand this procedure by attending one of these auctions to show in detail how it works. You may attend any auction near your region, but if you can't, read the post further to gain details.

How Does the Donated Car Auction Process Work?

Among various ways one way a charity uses donated cars is by selling them in an auction. Most of the vehicles processed are former lease cars, bank repossessions, dealer sales, insurance car loss, former utility vehicles, and recreational automobiles. 

For example, the insurance loss cars are the ones involved in an accident, and the owners wish to relinquish it rather than repair it. An insurance company sells such cars to licensed dealers who resell or fix part of it and auction it.

All such cars are stored outdoors in bulk. They are numbered and inventoried. The charity makes a profit by charging fees for selling and buying the cars. They do so by targeting an extensive range of buyers who come to purchase the cars in the auction process.

What Happens During the Donated Car Auction Process?

Usually, the auction takes place in a big indoor garage with numerous lanes placed in alphabetical order. Each vehicle lane has a garage door at each end to easily drive through the vehicle. Each lane is dedicated to numerous categories of cars, and an employee is assigned to supervise each lane.

Before selling the car, attendants prepare the automobiles and line them up to the garage in their respective lanes. The preparation consists of detailing and washing the vehicles, charging their battery, and making minor adjustments to ensure the cars are ready.

When the donated car auction begins, the car perfect for sale is driven into the auction place. Vehicles that don’t run are pushed in from behind the padded trucks. An inspector performs a brief inspection of the vehicle. Prospective buyers have a higher chance to consider the car, examine its flaws, and check the interiors. It is not allowed to use diagnostic tools. 

When vehicles are auctioned to dealers, such cars are sold in the condition they are sold. These cars may have problems, and the dealers are prepared and aware of it. The buyers influence the major decision, including the car's year, make, condition, and mileage. 

An important consideration is to ensure whether the car runs or not. The auction confirms that the vehicle is in running condition with no major problems. Hence, if the buyer purchases a car that seems misrepresented, they may return it. Mostly, it is not an issue as the charitable agency ensures to mention everything to buyers before they want it.

The next step is the bidding process, which begins right away and lasts for a few minutes. A tall bidding podium in each lane is where the announcer sits to accept bids. The buyers indicate they want to place a bid in a non-verbal form of communication like a raised hand, nodding of their head, and an arm motion. The person with the highest bid wins. 

Every car requires a different time to be sold. If there is a car with high interest or valuables, the off-site sellers will likely review the bid later and then accept it. If the bid is permitted on site and if winners offer the payment, the cars are placed on temporary lanes, and they can drive vehicles to the home.

After bidding, the car is driven out to the other end of the garage and back into the lot. This way, all cars are continuously driven through the same process until the auction ends on that specific day. Usually, the auction lasts for a couple of hours.

How are the Proceeds Utilized?

Most donated cars are auctioned to generate funds for the charitable organization. In such cases, the proceeds from each sale are used for charity programs.

The person who bought the car in the auction gets a tax receipt according to the car's fair market value. 

After 2-4 weeks of donation, the donors are informed about the time they will receive the car and then arrange a pickup at a suitable time.

Learn More About Car Donations from Eggleston

Car donations are a highly valuable, useful, and sought-after way to support the community. You must make a well-informed decision regarding the organization you want to donate the car. Eggelston offers car donation services in Virginia. The money earned from our proceeds has the biggest impact as we use it to offer jobs for physically disabled adults. Visit us to learn more about our process and plan your car donation.