The scrap math, in plain numbers
Scrap value is roughly the car's curb weight in tons times the price per ton for complete cars. A 3,300 lb sedan is 1.65 tons. If complete cars are paying around $186 a ton, the shell is worth about $310 before parts are counted. Missing parts lower that, and a working engine or transmission can raise it.
What to remove before scrapping
- Personal items, garage remotes and toll tags
- License plates, if your state keeps them with the owner
- Any aftermarket stereo or accessories you want to keep
Scrapping compared with donating
Donating a junk car to a charity can sound better than scrapping it, but the tax benefit is usually small, and you only get it if you itemize. Under IRS Publication 526, if the charity sells the car for $500 or less, you can deduct the smaller of $500 or the car's fair market value. If it sells for more than $500, the deduction is generally limited to the gross proceeds of the sale.
For a car worth a few hundred dollars in scrap, cash in hand is usually the better outcome. If you'd still like to donate, you'll need the charity's written acknowledgment for any deduction: Form 1098-C or the charity's own statement with the same details. IRS Publication 4303 lists what it must include.