2020 Illinois Car Trade-In Tax Changes

2020 Toyota Corolla Hatchback 

Value Your Trade View New Inventory

Are you looking to trade in your vehicle for a brand-new Toyota model to drive around Chicago and Evanston? If so, you will want to make sure that you are completely up to date about the value of your trade-in and how much you will need to pay. Get up to speed by checking the new Illinois car trade-in tax changes that go into effect starting in January 2020. Get the scoop on how you can benefit from these changes and how you can prepare to trade in your current vehicle with the experts at Chicago Northside Toyota.

What is the Sales Tax on a Car in Illinois?

buying a new carYou may be wondering, "What is the sales tax on a car in Illinois?" Up until recently, Illinois car buyers haven't had to pay a 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. Starting January 1, 2020, however, Senate Bill 690, signed by Gov. J.B. Pritzker on June 28, will go into effect. What does this mean? State and local sales tax are now applied to any vehicle that has a trade-in value of more than $10,000. The state's sales tax to trade-in is now a cost to drivers at around 6.25%, while municipalities may have an average sales tax of 2.49%. If you go across the state, drivers will expect an 8.74% average trade-in sales tax. For those in Chicago, expect a sales tax near 10.25%. With this new sales tax, the funds go toward a new initiative for road reconstruction along with vertical infrastructure projects like new state buildings and renovations.

How Does Trading in a Car Work?

If you are going to trade in your vehicle, you are probably wondering, "How does trading in a car work?" or where to pay car taxes. All of the information you will need is available at your trusted Evanston-area dealership, Chicago Northside Toyota. Follow these simple steps below and enjoy a hassle-free experience as you start the trade-in process:

  • Estimate the value of your pre-owned vehicle with our trade-in calculator.
  • Get an appraisal and inspection of your vehicle's condition, quality, and demand from us and a nearby CarMax location.
  • Negotiate trade-in offer conditions and use your trade-in for cash or put it toward a new vehicle purchase.
  • Accept trade-in terms, sign the paperwork, and head home in your new vehicle.

Trade In Your Vehicle at Chicago Northside Toyota

After you have reviewed the new Illinois car trade-in tax changes taking place in 2020 and learned more about how trading in a car works, make the short drive from Lincolnwood to Chicago Northside Toyota. We'll help you explore our new and used vehicle inventory, as well as our rotating selection of vehicle specials, to help you get the best deal possible on your next Toyota car, truck, or SUV. Contact us today for additional information or to schedule your test drive.

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