One often-overlooked option for cars with relatively low values: Donate your car to a favorite charity and take a tax write-off. You must, however, itemize deductions on your tax return; the IRS says that only about one-third of all taxpayers do. Car donations seem to be all the rage among charitable organizations as a fund-raising scheme. The charity will usually hire a company to process the car; operable cars are sold at auction, while inoperable cars are broken up for parts and scrap metal. The charity will typically get around 60% of the proceeds.

Donating a car is easy. Simply call the charity and they'll usually come fetch the car with a tow truck - whether the car runs or not. They'll provide you with a receipt, though they'll let you fill in the vehicle's value. The IRS will expect you to take a "fair market value." If you claim that the car is worth more than $5,000, the agency will require an independent appraisal. For cars worth less, you'll need to document the car's condition. Take a photo of the car, write down the mileage, and search IntelliChoice.com for an appropriate value for the car.

If you claim the car is worth say, $4,000, and you're in a 28% tax bracket, you'll be getting $1,120 for the car. And beyond the tax savings, you will have the satisfaction of helping a worthy charity. Just be certain the cause is truly worthy. Though car donations are sought by many well-known and respected groups - from the Salvation Army to the Multiple Sclerosis Association of America - law enforcement officials have prosecuted several so-called charities around the nation that turned out to be nothing more than used-car lots. Give to a charity you know.