Cash for clunkers' slows car donations to charities

You used to hear it all the time. Whenever someone raised the question of what to do with a near-worthless rust bucket, the answer almost always came back the same -- donate it to charity.

Since the arrival of "cash for clunkers," however, donations have dropped off. It's not hard to imagine why -- a $3,500 or $4,500 voucher is certainly more appetizing to the cash-strapped recession-era new car shopper than a tax writeoff come year's end.

The damage has not been insignificant. According to the Associated Press, a Texas-based charity estimates that the cash for clunkers program has already cost it $75,000 in missed vehicle donations. Unfortunately, instead of being sold for charity funds or turned over to needy families, formerly donation-worthy cars will be sent to the crusher with seized engines, per the program's stringent guidelines.

Despite a slowdown since its inception, the federal program has succeeded in sending consumers to dealerships. According to a survey of 517 in-market shoppers by Kelley Blue Book (KBB), the cash for clunkers program has persuaded 1 in 10 shoppers to purchase a new vehicle sooner. Taking into account that many trade-ins don't qualify for the cash for clunkers voucher, charities may see some relief yet. But when you consider that owners of particularly rundown vehicles will be looking at either a low-value tax writeoff or a $4,500 discount on a new car, the decision-making process becomes pretty clear.


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Bike shop’s Cash for Clunkers program now includes car trade-in

On Tuesday, we shared the story of a local bike shop that created its own, Portland-style version of the Obama Administration’s Cash for Clunkers program. In a nutshell, Southeast Portland’s Joe Bike will accept an old, clunker bike, donate it to charity, and then give customers a discount on purchase of a new bike.

Now, Joe Bike owner Joe Doebele has extended the program to include car donations.

Doebele has worked out a special a deal with the American Lung Association and car-sharing company Zipcar. Here’s how it works:

Donate your old car to the American Lung Association. The ALA will tow your car (running or not) for free, and you’ll also get the tax deduction.

Then, bring the receipt into Joe Bike and they’ll give you a 10% discount on any bike they sell. In addition to the bike discount, Joe Bike will also give you a unique coupon code for a Zipcar membership. With a bike purchase, you’ll be able to become a Zipcar member for $25 (instead of $75), your annual renewal fee will be just $25 (instead of $50) and you’ll get $150 driving credit.

It’s kind of a nifty little program. In one fell swoop, you can trade in your old car, help out the ALA, get a tax deduction, a discount on a new bike, and a discount on Zipcar.


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