Car donations are becoming a very popular way of donating to charities. So if you or a friend has an old car you don’t need anymore or just don’t have space for it in the driveway, you can always donate it to a good cause. If you decide to sell the car however just bear in mind that you will need to advertise it and deal with strangers wanting to haggle you down from your already low price. Or have you fix things before they purchase the car. If you don’t mind the hassle for a few hundred dollars that’s the way to go. However if you do donate the car you will be eligible for a tax reduction which actually may work out more than the few hundred dollars you would make.