Having a bunch of old tools sitting around collecting dust can feel like a waste. However, those tools may still have value and can be turned into cash if you know where to look. Getting money for your unused tools is easier than you think when you understand the options available.
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Should you sell or donate old tools?
The first decision to make is whether to try selling your old tools or donating them. Here are some things to consider:
- Selling allows you to make money, potentially a decent amount if you have high quality or rare tools.
- Donating to a non-profit like Habitat for Humanity declutters your space while benefiting a good cause.
- Selling takes more time and effort to individually price and advertise tools.
- Donating provides a tax deduction you can claim on your taxes.
- Older or cheaper tools may not be worth the effort to sell individually.
In many cases, a mix of selling and donating is best. You can sell the expensive power tools and specialty items while donating the basic hand tools and anything in poor condition. Let this guide point you in the right direction.
Options for selling old tools
If you decide selling your old tools is the way to go, here are some options for finding buyers:
Online selling platforms
Popular online platforms like eBay and Craigslist make it easy to post tools for sale. You can create listings with photos, descriptions, and pricing to attract buyers browsing these sites. Key tips for selling tools online:
- Take clear, well-lit photos showing any brand names/labels.
- Accurately describe condition, damage, wear and specifics like accessories.
- Research prices for similar items to set competitive pricing.
- Factor in fees for the selling platform and payment processing.
- Offer shipping directly or opt for local pickup only.
- Respond to buyer inquiries promptly and professionally.
Facebook Marketplace is another option, ideal for connecting with local buyers. Listings are free and you can communicate directly with buyers.
Tool forums & enthusiast communities
For specialty, high-end, or rare tools, check if there are online communities or forums focused on that type of equipment. For example, woodworking tool collectors or machining enthusiasts. Posting in those communities reaches an audience already interested in those types of tools who may pay premium prices.
Consignment at auction houses or antique stores
For vintage or antique tools, consigning them at an auction house brings access to experienced appraisers and collectors willing to pay top dollar. The auction house takes a cut of the sale proceeds, but does all the work photographing, marketing, and conducting the auction. This route makes sense for exceptionally valuable older tools.
Antique stores catering to collectors are another option where you would consign rare tools to be displayed and sold. Make sure you understand each store’s commissions and policies before consigning items.
Tool collectors
Avid tool collectors are out there and may be interested in particular rare or limited edition tools you have. Touch base with local collectors groups and specialty organizations to let them know what you have available for sale. Flea markets are also great for connecting with collectors browsing for treasures.
Direct outreach to buyers
If you have a valuable commercial grade tool targeted to a trade, consider directly reaching out to potential buyers:
- Contractors and tradespeople – carpentry, electrical, plumbing, welding, automotive tools
- Mechanics – auto or motorcycle garage tools
- Metal workers and machinists – metal lathes, mills, precision tools
- Farmers – agricultural implements
- Technology refurbishers – old industrial electronics
Search industry directories and local licensing agencies to find prospective buyers. Highlight the tool’s capabilities, condition, and advantages over newer models. Be open to offers and negotiations.
Pricing old tools for sale
A key step when selling old tools is properly pricing them. Factors impacting price include:
- Brand and model – Well-known pro brands command higher prices.
- Age and condition – Vintage tools in good condition hold value. Major wear and damage reduces value.
- Used prices of comparable tools on the market.
- Original purchase cost and MSRP – Provides a baseline.
- Rarity – Hard to find or limited edition tools justify higher pricing.
- Replacements cost – If still made, new price sets a benchmark.
- Demand and usefulness – Trendy or niche tools ideal for certain trades may fetch higher prices from the right buyers.
Aim to price tools competitively but also allow room for negotiation. You can start on the higher side, field offers, and take the best reasonable deal. Consider bundling tools together into kits around related functions or trade skills to boost value.
Best practices for pricing used tools
- Check listings of identical/similar tools for sale online for a pricing gauge.
- Search past sale prices on eBay and other auction sites.
- Factor in around 10% less than new cost for good condition used tools.
- Add around 20-30% premium for rare vintage tools in demand.
- Deduct 30-50% for well-worn tools with functional issues.
- Be willing to negotiate 15-20% lower if needed to make a sale.
Where to donate used tools
Donating old but functional tools benefits nonprofit organizations and allows you to clear clutter while gaining a tax benefit. Here are some top options for tool donations:
Habitat for Humanity ReStores
Habitat for Humanity ReStores specialize in building materials and construction tool donations. Many fix up and sharpen tools before reselling at discounted prices to fund Habitat’s mission of affordable housing. Locate local Habitat ReStores to schedule a donation.
Salvation Army Family Stores
The Salvation Army gladly accepts donations of household and shop tools they can resell through their thrift stores. Proceeds support Salvation Army services like food banks and homeless shelters. Find a local Family Store to coordinate dropping off a tool donation.
Goodwill
Similar to Salvation Army, Goodwill outlets sell donated items including tools to fund job training programs and other community services. Tools in good working order can find a new home with buyers looking for affordable options. Use Goodwill’s locator tool to find your nearest Goodwill donation center.
Local housing nonprofits
Smaller local organizations focused on housing repairs, remodeling services, and workforce training may also appreciate tool donations. These groups often rely on donations and volunteers to keep costs low. Search for local housing nonprofits and call to ask if they accept used tools.
Religious organizations
Churches, synagogues, mosques, and religious charities sometimes have ministries focused on building homes, disaster recovery, and community assistance. Get in touch to find out if they welcome tool donations for their ministry work or nonprofit partnerships.
Vocational training programs
Public high schools, community colleges, correctional facilities, and other programs teaching trades like carpentry and metalwork may accept tool donations to equip their shops. Contact nearby programs training in relevant trades to offer up extra tools in good shape.
Preparing & transporting tools for sale/donation
Take steps to make your tools ready for sale or donation:
- Clean dirty tools to display condition.
- Add new batteries/fuel to power tools.
- Sharpen any dull blades.
- Check for safety and include guards and accessories.
- Repair minor issues like loose handles.
- Package smaller tools in boxes or tool bags.
- Research obscure tools to provide info to buyers.
To transport tools:
- Place in boxes and crates to prevent shifting and damage.
- Use furniture dollies/hand trucks for large stationary tools.
- Secure tools properly in a pickup truck bed with straps/tie downs.
- Deliver tools yourself for local sales and donations.
- Arrange pickup by shipping carriers for online sales.
Maximizing tax deductions for donated tools
Donating used tools allows you to claim their value as a tax deduction which can save you money. Here are some tips to get the most out of your tax deduction:
- Itemize your deductions using Schedule A to claim non-cash charitable contributions.
- Determine the fair market value of tools at the time of donation. Search similar sales listings online.
- Get a detailed receipt from the receiving nonprofit that lists donated items and stated values.
- Take photos documenting the make, model, age, and condition of each tool.
- For tool lots worth over $5,000, consider hiring an appraiser to assess and document the valuation.
- Bundle less valuable tools together to reach the $500 minimum deduction threshold.
- Keep excellent documentation in case your deduction is audited.
By carefully preparing and valuing your tool donation, you can receive the maximum tax benefit.
Selling tools vs. donating – Which is better?
| Selling Tools | Donating Tools |
|---|---|
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Choosing to sell high-value specialty tools while donating the more common tools allows you to optimize both routes. Selling earns the cash your tools have worth while donating simplifies getting rid of excess and benefits charities.
Conclusion
With a range of great options, there’s no reason to let old unused tools sit idle. Use online platforms like eBay and Craigslist to reach buyers willing to pay decent prices for tools in good shape. For true vintage treasures, connect with auction houses and specialty collectors. Donating high quality but standard tools earns tax deductions and helps out nonprofits. Take time to prepare tools for sale and transport carefully. With a thoughtful approach, you can effectively turn unneeded tools into extra cash or charitable contributions.