I donated my car to Purple Heart, now what?

[Adam]

I donated an old car that had 317,000 miles, still runs, may have some engine leaks, may need a new coolant reservoir but it runs. I gave the signed title and the keys to the tow truck driver. Now, all I have to do is go to the MVA to return the tags and return my car registration (so I can get my refund). From what I understand I can get my full refund despite the registration expiring in 8 months. I guess this varies by state. So once all that is done I could just call my insurance to cancel out the car insurance. Am I on track? Must I bring proof to the MVA that my car has been donated or not necessary, just verbal info. is fine?

Topic

[Bret]

I would call purple heart, im sure they have somebody there that has dealt with this before, but you sound like your on the right track.

[Adam]

so car sold for over $500 at the auction and I got a letter stating I get a tax break. Now, the auction house just called me and left a message saying I owed money on the car and it’s fraud to donate a car that’s owed money on. I know the car is paid off for the last 5 years and I got no letter of anything about owing money to the car. Am I being scammed here?

Why would I donate a car just to get peanuts in tax break and end up getting in trouble for “fraud”, and why would I buy a new car so I can make monthly payments to while the old car was “owed” money? Am I being scammed here or was the buyer of the car simply disappointed in the “sold as is” car at the auction? I think the car sold in December of last year and I’m just hearing from the auction house now?

I was told I can’t claim a tax break on this since I “owed” money on the car, so if I file my tax, do I just disregard this tax form I got saying I get a tax break or what?

[Mike]

If the car is bought with a loan, the title has a lien on it, in writing on the title. When the car is paid off, you get a letter from the bank that you submit to the state motor vehicle bureau (your MVA?) to tell them it’s paid off. Then they send you a new title that does not have a lien written on it, and that is the point when you can prove that you and you alone own a vehicle. Maybe you bought the car on a loan, paid it off, but never got the new title with no lien printed on it.

When you gave the tow guy your car and signed title, did he give you some kind of receipt or did Purple Heart mail you something? Is the car you gave them the Celica or something else?

Is it a scam? Probably not based on what you’ve said so far. They’re not saying you owe them money, right? They’re just saying they can’t transfer ownership of the car because they think you owe somebody money on it, it seems.

[Adam]

The title I gave the tow truck driver had no lien holder on it as far as I can remember. I think it’s part of their job to double check those things to avoid the hassle. I got a letter from the lien holder (bank) after I had paid off the car 5 years ago. I was in another state. I moved to this new state and registered and got my new state license and the title had no lien on it. I think the form on the MVA would have the option to fill in if car is paid off or not. I never had to submit to the MVA the “release” from the lien holder, could this be what’s causing this issue? I would assume it’s automatic otherwise I wouldn’t be driving the car for 5 years more after it had been paid off 5 years earlier without any type of notice coming in the mail saying I owed money.

Yes, it’s the Celica, I got a receipt online via email. I got a letter in the mail saying the car sold for over $500 (in November) so I get a tax break. I called up the # to give my social security so they can report it to the IRS so I get my tax form, I got those too. Why is the auction house just calling me now to say it’s a fraud and their calling the police? Are you kidding me? I donated the car as is and for free, I didn’t care much about the tax break, I didn’t even think the car would sell for over $500. The auction house didn’t ask for money but what their saying is exactly what you said; that there’s money owed to the car and they said it’s owed to the lien holder (bank). How do I proceed with this? Do I call the lien holder or the MVA? Do I call the auction house?

[zero]

Your first call should be to whatever agency the lien would be registered with, I’m guessing whatever agency deals with the vehicles registration and find out who would have put a lien against you and your property. Until you know who’s holding the lien you can’t really do anything about it.

[Author]

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