Fees and Costs

How do the fees work at the Car Talk Vehicle Donation Program?
We're glad you asked. Since its origins, the Car Talk Vehicle Donation Program has provided complete and detailed disclosure of program costs, fees and the percentage of the gross vehicle sales prices that are delivered to stations. We believe the entire vehicle donation process should be transparent. Many companies talk about transparency but at the Car Talk VDP we believe strongly that our donors and stations should know exactly what to expect throughout the process.

First of all, stations and donors never pay any costs associated with the donation of a vehicle. If the vehicle does not generate enough proceeds to cover the costs of towing, sale and title transfer then the Car Talk VDP covers these negative costs.

Most donated vehicles are sold at wholesale auto auctions to professional buyers. From the gross sales price of a vehicle, the Car Talk VDP deducts the costs of towing and transportation, any auction and sales costs, and the costs of title transfer, tax receipts and DMV processing charges. These are all third-party costs and none of these fees or costs are paid to the Car Talk VDP. What is leftover is called the net recovery amount.

From the net recovery amount, the station receives 75% for vehicles that sell for more than $500 and 70% for vehicles that sell for less than $500. The Car Talk VDP receives the remainder as its program management and administration fee. From this amount, the Car Talk VDP pays ICA, the "central charity" a 3.75% funds processing fee.

Program Costs
We are often asked how much towing, auction/sales and title work cost. These amounts vary based on the towing distance and the age and condition of the vehicle. Many vehicles are sold straight to a dismantler/recycler. These vehicles will usually not have any transportation costs because the buyer will cover the costs of picking up the vehicle. On the other hand, a vehicle that goes to a wholesale auction yard will have a towing fee and an additional auction fee.

Below is a list of activities and estimated costs common to most donated vehicles:

A Word (or Two) about Vehicle Values
Another common question vehicle donors ask is: How much is my vehicle worth? This question is important because it impacts not only the potential tax deduction a donor might receive but also how much proceeds will be left to benefit the charity.

To answer this question, it is important to recognize that the objective of our Vehicle Donation Program is to efficiently, quickly and reliably convert donated vehicles into the cash a charity needs to do its good works, while making it safe and easy for donors  to donate, and ensuring that the charity has no exposure to liability.  Donated vehicles are sold, therefore, in the wholesale auto markets, the same auto auctions used by auto dealers for trade-ins, insurance companies and fleet owners.

Cars sold in this wholesale market are sold at a lower price in contrast to owners selling to private parties through newspaper or internet ads.  So an owner’s valuation of an older, reliable vehicle may be much higher than the price paid by a wholesale auction buyer.  Vehicles over 10 years old routinely will not sell at an auction price that covers towing, title transfer, auction and processing costs, instead they are sold to dismantlers for their parts or recycling value. Because of these factors, resources such as Kelly Blue Book or N.A.D.A (National Automobile Dealers Association) can be unreliable in placing a wholesale value on a vehicle. It is worth noting that virtually all national vehicle donation programs sell vehicles in this same wholesale marketplace.

Additionally,  once we receive a donated vehicle we do a survey of the estimated wholesale value of the car based on year, make, model, mileage, location and condition as reported by the donor. On the basis of this information we make a determination as to which marketplace is best to maximize value and minimize costs.