THE NEW 2020 ILLINOIS TRADE-IN TAX LAW IN SCHAUMBURG, IL

THE NEW 2020 ILLINOIS TRADE-IN TAX LAW IS HERE!
WHAT IS THE NEW TRADE-IN TAX?
The new Illinois trade-in tax law became effective as of January 1st, 2020. This new trade-in tax eliminates the tax benefit of trading in your vehicle.

WHAT DOES THIS MEAN?
Before January 1st, 2020, Illinois collected no sales tax on the car's trade-in value. Before, your car acted as an untaxed credit towards your new vehicle purchase. Starting on January 1st 2020, sales tax will be charged on any trade-in valued over $10,000.

Before January 1st, 2020
After January 1st, 2020

 New Car Price $65,000 New Car Price $65,000
 Your Current Vehicle Value $38,000 Your Current Vehicle Value $38,000
 Trade-In Tax Credit $38,000 Trade-In Tax Credit $10,000
 Taxable Amount $27,000 Taxable Amount $55,000
 Tax Paid $2,430 Tax Paid $4,950
 Total Cost $29,430 Total Cost $31,950
 
For instance, if you traded-in a vehicle valued at $38,000, before January 1st 2020, for a new vehicle valued $65,000, you would receive a credit worth your current vehicle value, and only be taxed on the difference.

Starting January 1st, 2020, you will only receive a trade-in credit of $10,000, instead of the value of your vehicle, making the taxable amount of your vehicle $28,000. Plus you will still be paying tax on the cost of your trade ($27,000), making the total taxable amount $55,000.

You can get the best estimated value for your vehicle right now at Patrick BMW.

Make an Inquiry

By submitting this form you consent to Patrick BMW sending SMS (text) marketing messages to the number you have provided. You do not have to consent in order to obtain any of our products or services. Message and data rates may apply.

SALES HOURS

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

We use cookies and browser activity to improve your experience, personalize content and ads, and analyze how our sites are used. For more information on how we collect and use this information, please review our Privacy Policy. California consumers may exercise their CCPA rights here.

; ; ;