V-Dac Fee Schedule

How do V-Dac fees work?

We’re glad you asked. Since its origins, V-Dac has provided complete and detailed disclosure of program costs, fees and the percentage of the gross vehicle sales prices that are delivered to charities. We believe the entire vehicle donation process should be transparent. Many companies talk about transparency but at V-Dac we believe strongly that our donors and charities should know exactly what to expect throughout the process.

First of all, charities 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 V-Dac covers these negative costs.

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

From the net recovery amount, the charity receives 75% for vehicles that sell for more than $500 and 70% for vehicles that sell for less than $500. V-Dac receives the remainder as its program management and administration fee. From this amount, V-Dac pays ICA, the “central charity,” a 3.75% funds processing fee.

Program Costs

We are often asked about the costs for towing, auction/sales and title works. 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.

Fee Chart 1
Fee Chart 1