

THE NEW 2020 ILLINOIS TRADE-IN TAX LAW IS HERE!
WHAT IS THE NEW TRADE-IN TAX?
A 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 New Car Price................................................$65,000 Your Current Vehicle Value............................$38,000 Trade-In Tax Credit........................................$38,000 Taxable Amount............................................$27,000 Tax Paid.........................................................$2,430 Total Cost......................................................$29,430 | After January 1st, 2020 New Car Price................................................$65,000 Your Current Vehicle Value............................$38,000 Trade-In Tax Credit........................................$10,000 Taxable Amount............................................$55,000 Tax Paid.........................................................$4,950 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 on 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 Land Rover of Naperville.
Contact Us
By submitting this form, I understand that Land Rover of Naperville may contact me with offers or information about their products and service. I also consent to Land Rover of Naperville sending SMS (text) marketing messages to the number I have provided. I understand that I do not have to consent in order to obtain any of our products or services. Message and data rates may apply.Hours
- Monday 9:00AM - 9:00PM
- Tuesday 9:00AM - 9:00PM
- Wednesday 9:00AM - 9:00PM
- Thursday 9:00AM - 9:00PM
- Friday 9:00AM - 9:00PM
- Saturday 9:00AM - 6:00PM