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Tax season guide

Using your tax refund on a car? Sell the old one first

Plenty of people put a tax refund toward a down payment on a newer car. If the old one is junk, wrecked or not running, you can sell it separately and add that cash to the refund. Send one short form and our buyer partner contacts you with an offer.

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We don't buy cars: our buyer partner makes the offer. Free, no obligation, about 2 minutes.

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By sending this request, you agree that our buyer partner and the local buyers it works with may contact you about it by phone, text or email. Cash For Junk Cars 500 may earn a referral fee for it; you pay nothing. Message and data rates may apply. See our privacy policy and the partner's privacy policy and terms.

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Who makes the offer?

Cash For Junk Cars 500 doesn't buy cars. We pass your request to our buyer partner, which makes the offer. It works with junkyards, salvage yards, wrecking yards, auto auctions and other car buyers in your area, so one of them may handle the pickup and payment. We may earn a referral fee from the partner for your request; you pay nothing. Sending a request doesn't guarantee a sale.

Before you accept, confirm the amount you'll be paid, how you'll be paid and what proof of ownership you need. The partner's privacy policy and terms, linked above the button, apply to what it does with your request.

  • Any condition, running or not
  • Free towing and payment at pickup
  • No obligation: you can turn down any offer
Questions? Call(855) 497-1176

Trade it in or sell it separately?

A dealer has to resell or scrap a junk trade-in, and the trade-in value usually reflects that. Selling the old car on its own gives you a separate number you can compare, and you can still trade in a car that runs well if the dealer's offer is better.

For a rough idea of what a non-running car is worth in metal and parts, try the value calculator. The offer itself comes from our buyer partner.

Is cash from selling a junk car taxable?

For most people selling a personal car, no. You usually sell a used car for less than you paid, so there's no gain to report. Your situation can differ, especially if you're a dealer or used the car for business, so ask a tax professional if you're unsure.

If you were thinking of donating the car instead, read how car donation deductions work first. For a car worth a few hundred dollars, cash is often the better result.

Does tax season bring more people looking to sell a car?

About as many as usual: from February to April, interest in "sell my car" on Google Trends averaged 72.7, level with its yearly average of 72.7.

Inside that stretch it climbs from 70.4 in February to 74.1 in March. Searches for "cash for cars", measured in a separate request on a different scale, jump from 12.0 in January to 13.8 in February, the largest monthly rise for that term all year.

Average Google Trends interest in "sell my car" by month, with February to April highlightedJanuary 67.0, February 70.4, March 74.1, April 73.5, May 76.8, June 80.2, July 83.0, August 81.6, September 73.2, October 69.1, November 62.9, December 61.0. Yearly average 72.7.0255075100January: 67.0February: 70.4March: 74.1April: 73.5May: 76.8June: 80.2July: 83.0August: 81.6September: 73.2October: 69.1November: 62.9December: 61.0Jan70.4Feb74.1Mar73.5AprMayJunJulAugSepOctNovDec
Average Google Trends score for "sell my car" in the US by calendar month, November 2021 to October 2026, where the busiest week scores 100. Source: Google Trends via DataForSEO, retrieved November 5, 2026. Open in Google Trends Open "cash for cars" in Google Trends.

Selling works the same way in every season, and the how it works page walks through each step.

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FAQ

Tax season questions

Should I sell my old car before I buy a new one?

If the old car is junk or doesn't run, selling it first gives you cash you can add to the down payment and one less thing to arrange at the dealership.

Do I pay tax on money from selling my junk car?

Usually not for a personal car sold for less than you paid. Ask a tax professional if the car was used for business or you sell cars regularly.

How long does selling a junk car take?

Sending the form takes about two minutes. Our buyer partner then contacts you with an offer, and same-day pickup is possible in some cases.

Ready to sell the old car?

Request a free offer in about two minutes, or call with questions. Towing is free and you're paid at pickup.

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