Question

Identify an optimal strategy for someone to sell a lemon. (used car)

Answer 1

Many charities and non-profit organizations have car donation programs. The non-profit charity will come and take your car and sell it for you, typically through a broker. The organization gets to keep a portion of the proceeds of the sale while you get to take a tax deduction on the fair market value of the vehicle (not the book value). For this to work, you need to do an itemized tax return, and you also need to make sure the charity you’re donating the car to is one that qualifies for tax deductible donations.

If your lemon is worth more than scrap or a donation and you want to actually get some real money for it, then your best option is to sell it privately “as is” on your own. Selling it “as is” means there is no warranty and no guarantee to the buyer as to the condition of the vehicle. But you still need to be careful because if you intentionally mislead the buyer about the condition of the car, you could wind up in court facing a lawsuit from an unhappy buyer. Honesty is definitely the best policy. You want to make sure the buyer is fully aware of any and all problems with the car so they know exactly what they’re getting. If it’s a lemon, call it a lemon and provide a full description