Archive for the ‘donated car’ tag
A Car Donation Too Good for a Wholesale Auction
Sometimes we find gems and classic cars in amongst the vehicles donated to charities and handled by Charity Development. Often, by screening them out and selling them through retail channels, we add significant dollars to the amount we raise for a charity.
Here’s our latest example of a “save” from the auction block.
2005 Ford E-350 donated to charity
It was a 2005 sports mobile, and it was headed for auction; it was valued at about $10,000 wholesale by the auction company. They were thrilled that they were getting bids in for $14,700. We stopped the sale in its tracks.
Let’s talk about this van that I suspected immediately and then verified through further research. It’s a special van, a 2005 Ford E350 Sportsmobile 4×4 6.0L Turbo Diesel, long body, Sportsmobile conversion. It is in great condition, sleeps 4 to 5 people, and it’s a favorite for everyone from outdoorsmen to scientists to surfers.
From wholesale auction to retail – a big difference in a charity’s return.
A similar one sold recently for $68,000, and the original price in 2005 was $95,000. This is an example of the real, bottom-line value of car expertise in the car donation arena. It stands out because it is an expensive specialty vehicle, but it’s not uncommon to find cars that should sell for close to $2,000 at retail ending up instead at a wholesale auction, and selling for $500. The result, of course, is less return for the charity and a lower tax write-off for the donor. (Let me add here that auctions are great and have an essential place in the general run of car donations.)
Direct-to-Consumer Car Donation Marketing
We did a lot more after we plucked this car out of the auction. We marketed it on an Internet direct-to-consumer auction (which could have brought us up to $45,000), and we are marketing it now to sportsmobile enthusiasts at $72,000. We think there’s a buyer for this high-ticket car, and we believe that the many hours of extra work and time marketing it will make a huge difference for this car donation’s charity.
In this win-win-win, the donor will be happy with the charity for doing its job well; the charity will end up with a larger donation check; and the community, knowingly or not, will benefit from more money going into the hands of a charity.
Tim
