New for 2020 - Vehicle Trade-In Tax

 



Don't Wait! Illinois Law Changing 1/1/2020 Will Significantly Affect Trade-In Tax Credit

Senate Bill 690, signed into law by Governor Pritzker on June 28th, goes into effect January 1, 2020. Among other things, this bill means that State and Local sales taxes will be applied to any trade-in value over $10,000 - starting on 1/1/20. A consumer who trades in a vehicle valued at over $10,000 will not receive tax credit for the portion in excess of $10,000.
 
The state currently collects no sales tax on a vehicle's trade-in value, which acts as a tax credit toward a new vehicle purchase - and sales tax is currently only applied to the difference between trade-in value and the new vehicle's purchase price.
 
What Does This Mean for You As of January 1st?
 
For example, if someone is buying a $60,000 vehicle and is trading in a vehicle valued at $40,000, the loss of $30,000 trade credit after the new law goes into effect will mean an ADDITIONAL $2475 in sales tax paid for a vehicle registered in Cook County outside the City of Chicago, or $2850 more in sales tax paid for a vehicle registered in the City of Chicago.

If someone is buying a $36,000 vehicle and is trading in a vehicle valued at $20,000, the loss of $10,000 trade credit after the law goes into effect will mean an ADDITIONAL $825 in sales tax paid for a vehicle registered in Cook County outside the City of Chicago, or $950 more in sales tax paid for a vehicle registered in the City of Chicago.

The increase in taxes will not affect the dealership where you purchase your vehicle from. It WILL affect how much every consumer with a trade-in valued over $10,000 will pay in sales tax to purchase any new or pre-owned vehicle.

If you were waiting until next year to pull the trigger on your new or pre-owned vehicle purchase and trade in what you are currently driving, it may be financially advantageous for you to make your move before the beginning of the year. If you are considering this, we encourage you to speak with your accountant and we are happy to walk through the numbers with you - please don't hesitate to call us!




Contact

Bredemann Toyota in Park Ridge

1301 W Dempster St.
Directions Park Ridge, IL 60068

  • Sales: (847) 241-4210
  • Service: (847) 241-4769
  • Parts: (847) 241-4769

Hours

  • Monday 9:00 AM-9:00 PM
  • Tuesday 9:00 AM-9:00 PM
  • Wednesday 9:00 AM-9:00 PM
  • Thursday 9:00 AM-9:00 PM
  • Friday 9:00 AM-6:00 PM
  • Saturday 9:00 AM-5:00 PM
  • Sunday Closed
See all department hours

Dealership Hours

  • Monday 9:00 AM-9:00 PM
  • Tuesday 9:00 AM-9:00 PM
  • Wednesday 9:00 AM-9:00 PM
  • Thursday 9:00 AM-9:00 PM
  • Friday 9:00 AM-6:00 PM
  • Saturday 9:00 AM-5:00 PM
  • Sunday Closed

Parts Dept. Hours

  • Monday 6:00 AM-6:00 PM
  • Tuesday 6:00 AM-9:00 PM
  • Wednesday 6:00 AM-9:00 PM
  • Thursday 6:00 AM-9:00 PM
  • Friday 6:00 AM-9:00 PM
  • Saturday 8:00 AM-5:00 PM
  • Sunday Closed

Service Dept. Hours

  • Monday 6:00 AM-6:00 PM
  • Tuesday 6:00 AM-9:00 PM
  • Wednesday 6:00 AM-9:00 PM
  • Thursday 6:00 AM-9:00 PM
  • Friday 6:00 AM-9:00 PM
  • Saturday 8:00 AM-5:00 PM
  • Sunday Closed