What is the Sales Tax on a Car in Illinois?
So what is the sales tax on a car in Illinois? As if right now, there is no sales tax on a car's trade-in value since it's used as the difference between trade-in value and the new vehicle's purchase price. With that said, that changes once the clock strikes 12:00 a.m., January 1, 2020. Senate Bill 690, which was signed June 28 by Gov. J.B. Pritzker, establishes that state and local sales tax will be applied to any vehicle trade-in that's valued at more than $10,000.
For the state of Illinois, the trade-in value of your old vehicle will cost about 6.25%. Meanwhile, local municipalities have an average sales tax of 2.49%. That's an average trade-in sales tax of 8.74% across the state, though Chicago drivers can expect a sales tax closer to 10.25%.
What will the tax dollars for this trade-in car tax be used for? These funds will be earmarked for road reconstruction along with vertical infrastructure projects such as new state buildings and renovations.
How Does Trading in a Car Work?
If you're looking to trade in your current vehicle before New Years, you're probably asking yourself, "How does trading in a car work?" or "Where to pay sales tax?" Thankfully, you can get all of this information and more at your Chrysler, Dodge, RAM, Jeep dealership. At Elgin CDJR, we're happy to assist any local Chicago area drivers with the complicated nature of buying a new car or trading in an old car.
To trade in your car for a new one, follow these steps:
- Estimate the value of your pre-owned vehicle with our Edmunds Appraise Your Trade calculator
- After your online estimate, bring your vehicle in to get an appraisal and inspection, determining condition, quality, and demand
- Negotiate trade-in offer conditions. Once a number is agreed upon, use your trade-in for cash or put it towards a new vehicle purchase, like a new Chrysler Pacifica or Dodge Cherokee for your Streamwood family
- Accept trade-in terms, sign the paperwork, and head home in your new car, truck, or SUV
Trade-In Your Vehicle at Elgin CDJR
Review the Illinois car trade-in tax changes for 2020, then consult the Elgin CDJR finance center with any questions. We can help answer any trade-in-related questions, let you know about the latest new vehicle specials, or advise you on applying for financing online.
