Illinois Automotive Tax Update

Thanks to recent legislation that went into effect January 1^st, 2022, you can receive a full tax credit on your trade. Previous legislation capped the tax-creditable value of consumer trades at $10,000, but that's no longer the case. What this means for you is that the full value of your trade-in, even if it's over $10,000, can be deducted from the taxable value of your next purchase. See the example below to find how that translates to more money in your pocket.

Illinois Vehicle Tax Calculation	Prior To 1/1/2022	Currently
New Vehicle Purchase Price	$40,000	$40,000
Your Trade Value (Example)	$25,000	$25,000
Trade Allowance Credit	$10,000 (Tax Cap Limited)	$25,000 (Full Trade Value)
Taxable Amount	$30,000	$15,000
Tax Rate (Example)	9.75%	9.75%
Tax Due	$2,925.00	$1,462.50
	You Save:	$1,462.50

 

Now is the best time to maximize savings on a new vehicle! Our Express store is the perfect way to see how much your vehicle is worth in our free trade evaluation. We pay TOP DOLLAR for trade-ins. We want to buy your car!