THE NEW 2020 TRADE-IN TAX AT LAND ROVER NAPERVILLE

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.

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