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Recycle your old car by donating it to charity. You'll geta valuable tax deduction, the charity gets the scrap value of the car, and the environment benefits by getting a polluting vehicle off the road.
Here's some advice to consider before just blindly handing over the title to your car. If you are dealing with a car donation center, ask them how much of the actual sale price the charity will receive. Always make a copy of your title. Know who you are giving your car to. You should mail your title to the charity or hand it directly to the person towing your car only after they give you a receipt. Never, just leave the title in the car! If you do, you may not get a receipt and therefore, will have no proof of your donation. If you live in a state where you are required to remove the license plates, make sure you do! You won't be able to cancel your car insurance until you have either transferred the plates to another car or returned them to the Department of Motor Vehicles. Make sure you keep all the correspondence between you and the charity. If you don't, when you go to do your taxes, you'll find yourself calling around to the various charities to find out which one you donated your car to.  

These are some great tips. The new tax laws post 2005 are bit more confusing and close some of the "loop holes" that made donating vehicles so good in the past. A bit more documentation and signatures are now needed. If you car is worth more than $5,000 you may even have to get an appraisal. Check with the IRS to make sure the charity is legit.

Figuring out if it is worth it is the first step. I used the Car Donation Tax Deduction guide to help determine if it was worth it financially.