2020 Tax Increase

 

Who does this tax affect?
It affects everyone trading in a vehicle towards the purchase of a new or pre-owned vehicle.

What is changing?
Under current law, your trade allowance (vehicle value) reduces the overall amount of sales tax you pay on the vehicle purchase. However, under new law your trade allowance is capped at $10,000.

How much will this new law cost me?
Currently there is no sales tax on your car's trade value since the allowance reduces your overall taxable amount. Starting January 1, 2020, your vehicle trade allowance over $10,000 will not count as a credit and you will be taxed on the purchase price minus $10,000. Examples are below.

Current Tax Credit

New Tax Credit

Vehicle Sale Price

$60,000

Vehicle Sale Price

$60,000

Trade-In Allowance

$35,000

Trade-In Allowance

$35,000

Trade-In Tax Credit

$35,000

Trade-In Tax Credit

$10,000

Taxable Amount

$25,000

Taxable Amount

$50,000

Tax Paid

$1,812

Tax Paid

$3,625


What can you do?
If you intend to upgrade your current vehicle we recommend you do so before January 1, 2020. Taking advantage of the current tax law can save you thousands on your purchase.

We have several programs available to not only get you a great deal on a new vehicle, but also to get you the maximum amount on your current vehicle. You can use the form below to get started.


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Contact

Audi Loves Park

6600 E. Riverside Dr.
Directions Loves Park, IL 61111

  • Sales: 815-636-6600
  • Service: 815-636-6600
  • Parts: 815-636-6600

Hours

  • Monday 9am-9pm
  • Tuesday 9am-9pm
  • Wednesday 9am-9pm
  • Thursday 9am-9pm
  • Friday 9am-7pm
  • Saturday 9am-6pm
  • Sunday Closed