2020 Tax Adjustments

Volvo Cars Lisle believes in transparency in the buying process, and we wanted to make sure our customers understand how this new tax adjustment will effect your buying process. Below is a brief guide on what changes were made, who it affects, how they affect the buying process, & what your options are. Please feel free to reach out to our team if you have any questions about how this will change will affect your next purchase of a Volvo from Volvo of Lisle!
Who does this tax adjustment affect?

It affects Illinois residents trading in a vehicle towards the purchase of a new or pre-owned vehicle.

What changed?
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 link below to get started.



 

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Volvo Cars Lisle

4325 Lincoln Avenue
Directions Lisle, IL 60532

  • Sales: (630) 206-5100
  • Service: (630) 246-2200
  • Parts: (630) 206-5100

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  • Monday SALES 8am-9pm
  • Tuesday SALES 8am-9pm
  • Wednesday SALES 8am-9pm
  • Thursday SALES 8am-9pm
  • Friday SALES 8am-9pm
  • Saturday SALES 9am-5:30pm
  • Sunday Closed

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