Make Your Trade-In and Purchase at Palmen Automotive in Kenosha, WI
Many people shopping for a new or used vehicle have an old car they want to get rid of. Often, car shoppers trade-in their old model as credit towards their new purchase. Currently, for Illinois residents, sales tax only applies to the difference between the trade-in value and the new vehicle price.
For example, if the trade-in value of your vehicle is $20,000 and your new vehicle purchase is $30,000, the $20,000 value of your trade-in vehicle is used as credit and the taxable amount is the $10,000 difference.
However, that is about to change come Wednesday, January 1st, 2020.
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How Does the Illinois “Double Taxation” Law Work?
For the new year, state and local tax will be applied to any trade-in vehicle valued above $10,000.
To use the same example as above, if the trade-in value of your vehicle is $20,000 and your new vehicle purchase is $30,000, the NEW taxable amount is $20,000.
This number comes from taking the current taxable amount while ALSO taxing the amount of your trade-in over $10,000.
If your trade-in vehicle is valued at $20,000, $10,000 of that is additionally taxed.
If your trade-in vehicle is valued at $12,000, $2,000 of that is additionally taxed.
Therefore, not only are Illinois residents being taxed twice but the more value their trade-in vehicle has, the more it is costing them. Essentially, this is punishing drivers for keeping their vehicles in good condition.
Profits from this “Double Taxation” law are being earmarked for new state buildings and renovations.
Where Can I Shop Outside of Chicago, IL? Palmen Automotive in Kenosha, WI
For drivers and car shoppers in the Chicago area, we invite you to trade-in your models and shop at the Palmen Automotive dealerships in Kenosha, Wisconsin before the law goes into effect.
Kenosha, Wisconsin is located between the cities of Milwaukee and Chicago, right past the state border and along the coast of Lake Michigan. Palmen Automotive dealerships in the area include Palmen Alfa Romeo, Palmen Fiat, Palmen GM, Palmen Kia, and our location here at Palmen Motors where we sell new Chrysler, Dodge, Jeep, and Ram models.
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Shop for Your Next Ride at a Palmen Auto Store in Kenosha, WI
To see your vehicle options when shopping at Palmen Motors, browse through our online inventory of new CDJR models. Additionally, for budget-conscious drivers, take a look at our pre-owned inventory of used car models. Among other online services, you can also Value Your Trade with us online to see how much your vehicle is worth, knowing you’ll get all its maximum value by shopping with us before the “Double Taxation” law goes into effect come Wednesday, January 1st, 2020.
For more information on available models, trade-in practices, and automotive assistance, please contact us. The Palmen Motors staff can be reached online, by phone, or with a visit to our dealership located in Kenosha, Wisconsin!
