Yes, you can deduct the FMV in this situation since they are using the vehicle and not selling it. However, it needs to be the true FMV, not just the blue book value. This means the condition of the car must be considered.
The letter may be only part of what you need depending on the value of the car.
If the car was work more than $5,000 then you will need an appraisal letter too.
The written statement can be used instead of Form 1098-C, but it must contain all of the information on the 1098-C
https://www.irs.gov/pub/irs-tege/pub4303.pdf
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