Finance Department

Are you looking to trade in your current vehicle around the new year to purchase a new Toyota model? At Elgin Toyota, we understand that you want to enhance your drives around the Schaumburg and Streamwood areas. With that said, it's important to make sure you are fully aware of how much you will get for your vehicle trade-in and how much you will need to pay. Stay up to speed by taking a look at the new Illinois car trade-in tax changes available for 2020. Get all of the details of how you can benefit from the changes and how to get ready to trade in your vehicle with the Toyota-experts at Elgin Toyota.

What is the Sales Tax on a Car in Illinois?

2019 PRIUS Limited
By now, you must be thinking, "what is the sales tax on a car in Illinois?" Right now, there is no sales tax on a vehicle's trade-in value since that's what's used as the difference between the trade-in value and the new vehicle's purchase price. However, on January 1, 2020, Senate Bill 690, which was signed on June 28 by Gov. J.B. Pritzker, goes into effect. This means that local and state sales tax will get applied to any vehicle trade-in value that's more than $10,000. The state's sale tax to trade in will cost drivers around 6.25%, while municipalities may have an average sales tax of 2.49%. All across the state, drivers will expect an average trade-in sales tax of 8.74%, Chicago drivers will have a sales tax near 10.25%. Even with these new sales tax changes, the funds will go toward the new initiative of fixing road reconstruction along with vertical infrastructure projects like renovations and new state buildings.

How Does Trading in a Car Work?

If you're getting ready to trade in your vehicle before the new year, you may have these two questions:

  • How does trading in a car work?

  • Where to pay car taxes?

You can get all of your questions answered, as well as additional information when you visit our team at Elgin Toyota. We're here to make the process as stress-free as possible. Follow these steps below to get your vehicle trade-in process rolling:

  • 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 Elgin Toyota!

Are you ready to trade in your vehicle and start enhancing your drivers around the Chicagoland area? After you have checked out the new Illinois car trade-in tax changes starting January 2020, make the short drive from the Schaumburg area to Elgin Toyota! We can't wait to show off our new and pre-owned inventory for sale and get you behind the wheel of the vehicle best suited for you. Give us a call for additional information or to schedule an appointment at our Streamwood dealership!