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Here’s what happens when you donate a car to public radio

Leonardo A. Villalta prepares a tow truck for Noel Preecs' donated 2013 Ford Explorer.
Patricia Lim
/
Texas Standard
Leonardo A. Villalta prepares a tow truck for Noel Preecs' donated 2013 Ford Explorer.

In early December, Noel Preecs helped fund nonprofit journalism in an unconventional way.

When I met up with him outside his Austin home, he had a silver 2013 Ford Explorer that had seen better days and its title in hand.

“It’s a mess,” he explained. “It’s got dings and scratches and lots of mileage. I think the brakes probably need to get replaced and the roof leaks.”

Instead of repairing and then reselling the vehicle, Preecs decided to donate it to his local NPR station, KUT News.

“My mother-in-law was driving it for a while,” he said. “She doesn’t need it anymore and it’s just been sitting here totally idle.”

Preecs is an ideal public radio fan, one who likes the service enough that he is willing to donate a valuable piece of his property to help pay for it.

For some nonprofits, taking people’s old and rundown cars can create a lucrative revenue stream.

Each year, the KUT Vehicle Donation Program receives between 400 and 500 used cars, generating around half a million dollars in revenue.

“If I donate it, then that work can go to somebody else,” said Preecs. “And all of the profits can go to services that I have relied on for a really long time.”

To prepare Preecs’ Ford Explorer for a long journey, he and I plastered the back bumper in NPR stickers and then placed a public radio care package in the passenger seat.

Noel Preecs leaves a KUT/X/Texas Standard goodie bag and note for the future owner of his 2013 Ford Explorer.
Patricia Lim
/
Texas Standard
Noel Preecs leaves a KUT/X/Texas Standard goodie bag and note for the future owner of his 2013 Ford Explorer.

The care package included KUT and Texas Standard socks, stickers, a public radio-branded water bottle and a note to whoever ended up with the Ford Explorer.

“I like the sense of mystery,” said Preecs. “It incentivizes curiosity.”

A few minutes later, the first group of people who made money off of Preecs’ charitable act arrived.

Leo’s Towing, a small business with two trucks, showed up and loaded the Explorer onto the bed of a truck and hauled it away. They earned $175 for the tow.

As Preecs’ Ford Explorer was repurposed and released back into the world, several people profited off of it. Preecs was not one of them.

Car donations are a low-investment way that nonprofits generate extra revenue, but behind the altruism there’s a system of players that come together to extract as much value as possible from each vehicle.

CARS and the tax break you probably won’t get

Preecs donated his vehicle to KUT News, but the process itself was administered by a nonprofit based out of San Diego, Calif., called Charitable Adult Rides & Services (CARS).

“The number one reason people donate,” said CEO Howard Pearl, “is to get it out of their driveway.”

CARS works with around 10,000 nonprofits across the country, more than 400 of which are NPR and PBS stations.

Some vehicles processed by CARS are sold for parts and scrap metal, but the majority are sent to auctions. 70% or more of a vehicle’s sale price goes to the charity it was donated to, the rest goes to CARS and administrative costs.

In 2024, the organization processed more than 96,000 donations and generated around $80 million in revenue from used vehicles.

“I think the weirdest thing we ever got was a NASCAR donated to us,” said Pearl.

Data from Charitable Adult Rides & Services and KUT News / Illustration by Raul Alonzo, Texas Standard

People who donate their old and beaten up vehicles to public radio will never make any money off the process, but they are eligible for a tax break.

“The argument has long been accepted that some amount of deduction should be allowed to people who give away their money,” said co-founder of the Urban-Brookings Tax Policy Center Eugene Steuerle.

Steuerle is the author of “Beyond Zombie Rule: Reclaiming Fiscal Sanity in a Broken Congress” and he explained that offering incentives has long been a part of the federal tax code.

When people donate their vehicle to public radio, they’re able to deduct the amount it sells for from their taxes.

There is one major caveat: the financial benefits of donating to charity only apply to people who itemize their deductions when filing their taxes.

“Most people do not get a charitable deduction for donating their car,” said Steuerle.

In order to simplify tax season, the federal government offers all tax filers a shortcut.

Instead of itemizing every deductible expense like donations, bad debts and costly medical expenses, filers can claim the standard deduction, a set amount that lowers your taxable income.

The standard deduction is indexed to inflation and for 2025, it’s $15,000 for single filers and $30,000 for joint filers.

Because these amounts are so generous, around 90% of Americans claim the standard deduction instead of itemizing their deductions.

“I would say that people probably usually give their cars away out of the goodness of their heart,” explained Steuerle.

That does not mean, however, that our donor Noel Preecs receives nothing.

Everybody who donates a vehicle to KUT News receives a thank you gift. So if nothing else, Preecs can expect a piece of public radio merchandise in the mail.

Auctioning for charity

After the Ford Explorer was loaded onto the back of a tow truck, it was hauled to Public Auto Auctions in Kyle, TX.

“We get cars from all the way up to Dallas all the way down to Corpus Christi,” said general manager Andrew Kinsfather. “We go far east to Houston and we go west to Fredericksburg and sometimes beyond.”

Around 70% of the vehicles Public Auto Auctions sells have been donated to various nonprofits around Central Texas.

“We also have government fleet vehicles, consigned vehicles from different dealerships and individuals,” explained Kinsfather. “But it is mostly charity-donated vehicles, whether it be KUT or other nonprofit radio stations, Kars4Kids, Wounded Warrior Project.”

Leonardo A. Villalta unloads the donated 2013 Ford Explorer at Public Auto Auctions in Kyle.
Patricia Lim
/
Texas Standard
Leonardo A. Villalta unloads the donated 2013 Ford Explorer at Public Auto Auctions in Kyle.

On any given day, Public Auto Auctions has between 140 to 200 vehicles on its lot. Each vehicle that comes in receives a condition report, which notes imperfections and status of the vehicle.

Because the staff processes so many cars, each auction listing comes with a disclaimer.

“Vehicle condition and drivability are not guaranteed,” its website reads. “We strongly advise potential buyers to have a qualified mechanic inspect the vehicle before purchase.”

The condition report for Noel Preecs Ford Explorer noted that the vehicle had dents, dings and scratches, water in the vehicle, a broken air vent and ice cold air conditioning.

Using a pricing tool that allows him to compare similar makes and models that have sold in the past year, Kinsfather rated the Ford Explorer two out of five.

“What we’re looking for is what we think we can get at auction to help the charities,” said Kinsfather.

Because Preecs’ SUV is the highest-level trim and only has 72,000 miles, Kinsfather’s pricing tool gave him a market rate value of $6,800. The auction lot charges a fee based on the sale price of each car, so it’s in their best interest to get as close to or exceed the market rate value.

Public Auto Auctions is open to the public, which means that broadly speaking, there are three categories of buyers.

The first is everyday people looking to get a good deal on a used car. This might be a parent looking to buy their teenager a starter car.

The second category of buyer is enthusiasts, folks who may want to rebuild a vintage vehicle or need parts they can’t get anywhere else. The third category is used car dealers.

Noel Preecs’ Ford Explorer had 72,000 miles and a bumper full of public radio stickers when it was auctioned.
Screenshot by Sean Saldana
Noel Preecs’ Ford Explorer had 72,000 miles and a bumper full of public radio stickers when it was auctioned.

Auctioning off donated vehicles is a volume business, which means that just three days after Preecs’ Ford Explorer was picked up from his driveway, people started bidding on it.

These days, the majority of car auctions take place online and at Public Auto Auctions. Vehicles are sold each Saturday in quick succession.

Because of the relatively low mileage, Preecs’ Explorer was one of the more sought-after items the day it was auctioned.

Within just moments of opening, the price shot up to the $5,000 range. And for a while, it just stayed there.

“C’mon,” a robot voice urged the bidders. “This is a nice one, guys.”

Then the bidding got started again until, eventually, the 2013 Ford Explorer sold for $7,025.

Based on the final sale price, Public Auto Auctions received $632. The nonprofit CARS received $1,013. And KUT, the nonprofit the SUV was donated to, got $5,743.

After Preecs’s Ford Explorer sold, it exited the world of nonprofits and charity and reentered the free market.

From a donation to a small business investment

And a little over a month after it sold, I tracked down Noel’s Ford Explorer at a used car dealership in North Austin.

“I always loved cars. I’m from Iran,” said the owner Sam Safa. “When I got to come to the U.S., I saw a lot of new generation cars, vehicles, and I got in love with them.”

Safa is owner of Prestige Autoplex LLC, where around 55 vehicles sit on the lot. He has a staff of two and most of his inventory are auctioned vehicles.

“We are just constantly just looking at those online auctions,” said Safa.

The 2013 Ford Explorer eventually ended up at Prestige Autoplex LLC, a used car dealership located in North Austin.
Sean Saldana
/
Texas Standard
The 2013 Ford Explorer eventually ended up at Prestige Autoplex LLC, a used car dealership located in North Austin.

Safa said that on each vehicle he sells, he makes from $1,000 to $1,500 on average, but in some cases can clear much more.

“It all varies,” he explained. “It’s been cars that made a profit over $3,000 or $4,000.”

The 2013 Ford Explorer we’re tracking is the only thing he was even bidding on in the auction – and after about 20 minutes of chatting, Safa and I headed out to take a look at it.

Safa estimates that he’s put about $1,200 into repairing the SUV.

When he showed me the Explorer, it had new tires, new brakes, a sunroof that didn’t leak and a for-sale sticker on the window. The asking price was $12,499.

“If we don’t sell a car within a week or two, we drop the prices,” explained Safa. “This car has been here for almost a week. So within two weeks, we’re going to knock it down a little bit.”

Texas Standard reporter Sean Saldana interviews Sam Safa in front of the repaired 2013 Ford Explorer.
Courtesy of Prestige Autoplex LLC
Texas Standard reporter Sean Saldana interviews Sam Safa in front of the repaired 2013 Ford Explorer.

When I finally tracked down the Ford Explorer, it had completed a transformation, going from a nonprofit donation to inventory for a small business.

In this process, more than $5,000 was raised to help fund free, reliable journalism.

“Hopefully we make some money,” said Safa. “Once I sell it, maybe we donate a little bit of the profits to your company.”

Public media organizations get some funding from the government, but the majority comes from donors. Most people just give money, but we also accept beaten-up cars.

If you found the reporting above valuable, please consider making a donation to support it here. Your gift helps pay for everything you find on texasstandard.org and KUT.org. Thanks for donating today.