CAR DONATIONS INCREASE DESPITE POOR ECONOMY

KARS4KIDS SEES NEARLY 4% INCREASE

November 5, 2009 – While automakers are reporting on one of the worst retail years in decades, Kars4Kids.org experienced a surprising growth in auto donations. Though actual revenue remained about the same due to volatility in the auto-remarketing industry, the national car-donation program reported a 3.7% growth in donations for its fourth fiscal quarter and a 3.9% overall increase in donations for its fiscal year.

There were a number of factors leading to the auto-donation growth trend, said Robert Moskowitz, a business analyst at Kars4Kids. Many of the organization’s donors reported that they no longer had any need for a second car. “We don’t ask people whether or not they are currently employed,” said Moskowitz, “but some donors volunteered to our customer service reps that being unemployed eliminated the need for the extra vehicle.”

Statistics clearly show that families trying to make ends meet are reducing their driving costs and that giving up the second car saves on repayments, insurance and maintenance. It’s still too early to tell how widespread the trend toward one-car families is, but the lease market provides the strongest indication that it’s growing. LeaseTrader.com recently reported that the number of clients abandoning their leases to become one-car families has tripled in the past year.

Another reason for the growth in car donations is that the Cash for Clunkers program created a shortage of main automobile components, such as engines.

“One thing is certain,” said Moskowitz. “Despite a bad economy, Americans remain as generous and charitable-minded as ever—perhaps more so during bad times. We had calls while the Cash for Clunkers program was active from a number of people who wanted to specifically donate their cars at that time because they expected that we might be in trouble and they wanted to help us continue to fund the important programs that we’re involved in.”