I hear tax laws have changed regarding writting off donated vehicles. I mean, how bad can it be? If anyone experienced something like this let me know, or know much about the laws on car donations etc.

You used to be able to write off fair market value for the vehicle. Now you can only write off what the charity actually sells it for.

It got more involved because there are new rules to follow in terms of how much you can write off (not as much) and the recordkeeping requirements...see IRS.GOV

Usually the charity that receives a donated car sells it. The charity will send you a form 1098C indicating the proceeds of the sale. You are allowed to deduct that amount.If the proceeds are less than $500 then a 1098C is not required and you deduct that amount.If the charity uses the vehicle for its own purposes, or gives it for free or for less than its sale value to a needy individual, then the charity will send you a statement that you are allowed to deduct the fair market value.

You can only deduct charitable contributions if you itemize.And yes, the rules on how much you can deduct have changed. If the charity sells the car, which is usually what they do with donated vehicles, you can only deduct what they sell it for, not fair market value as in the past.