Trade In or Donate Your Car? How to Get a Cheap New Car in 2023

Buying a new car today isn’t as easy as it used to be. Supply shortages and high demand have caused the prices of most major models to skyrocket. While trading in your old car can help lower your final purchase price on a new ride, a car donation to a worthy charity can also help bring down those final numbers. Of course, if your goal is to get the cheapest new car possible in 2023, donating your car instead of trading it in may be the smarter move.

The Benefits of Car Donation

Rather than accepting the dealer’s often low trade-in offer, a car donation lets you take advantage of the tax deductions to lower your taxable income. You can claim the fair market value (how much a similar car is worth in your area) as an itemized deduction when you donate a car to an eligible charity, or you can deduct the amount the charity earns from selling your car. This can result in substantially more savings compared to a trade-in credit. Plus, you’ll be helping a great cause for your community.

Donating a car is easy, too: many charities handle all the paperwork for you. They’ll pick up your old car for free and provide you with the documentation needed for your taxes. This makes cars donation a seamless way to get rid of your old car while maximizing your savings on a new purchase.

Of course, saving money on your next ride involves more than increasing the value of your trade. You also have to find an economically-friendly vehicle.

The 3 Cheapest New Cars for 2023

Once you’ve donated your car for the tax write-off, you’ll be ready to get the cheapest new set of wheels possible. Here are the three most affordable brand-new cars for 2023:

Nissan Versa

– With a starting price of $17,075, the no-frills Versa S is one of the cheapest new cars available. It has basic features like Bluetooth and a 7” display. The 122hp engine delivers decent pep when paired with the manual transmission.

Mitsubishi Mirage

– This petite hatchback stickers for just $17,500 in its base ES trim. It’s not fast, but excellent gas mileage and Apple CarPlay/Android Auto make it livable around town. The sedan version costs slightly more at $18,500.

Kia Rio

– For $17,875, the Kia Rio LX offers great value with its stylish design, 120hp engine, and nice interior. Moving up to the S trim adds desirable features like cruise control for a reasonable $300 more.

Find Additional Savings

On top of the tax deduction from car donation, you can stack on other savings when buying your new budget-friendly car. Check for manufacturer rebates and financing incentives, which can knock thousands off the price. Shopping previous model years and negotiating with dealers can also help score you the cheapest new car possible.

With smart planning using car donation and other strategies, you can get a brand new car for under $20,000 with all the latest features, warranty, and peace of mind a new car provides.