And it may cost you thousands. Don't delay. Beat the clock to get your best trade-in before January 1st, 2020 at Patrick BMW.
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WHAT IS THE NEW TRADE-IN TAX?
A new Illinois law becomes effective on January 1st that eliminates the tax benefit of trading in your vehicle.
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WHAT DOES THIS MEAN?
Illinois currently collects no sales tax on the car’s trade-in value. Your car will currently act as an untaxed credit towards your new vehicle purchase. Starting January 1st, 2020, sales tax will be charged on trade-in values over $10,000.
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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 are trading-in a vehicle valued at $38,000 before January 1st, 2020 for a new vehicle valued $65,000, you will receive a credit worth your current vehicle value and only be taxed on the difference.
At the start of the new year, 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.
Beat the clock to get your best trade-in before January 1st, 2020 at Patrick BMW.
IL 太缺钱了，以后各种税费都得涨