New Tax Law Lease in Illinois
Save More Money With the New Lease Tax
There are many perks when it comes to leasing a new car versus buying a new car. Leasing your next new Chevy at Currie Chevy allows you to afford more for less money because you’re not paying for the entire car, only for what you use. And leasing a new car or truck just got even better for Illinois residents. As of January 1, 2015, a new lease law has been put in place. The lease on new cars and trucks has been cut, and lessees could save up to 50 percent in taxes.
This new tax law allows customers to get more car than ever before for less money. House Bill 2317, signed by Governor Quinn, changes the way taxes are collected on light-vehicle leases. Before this new law, customers who wanted to lease a car paid tax on the entire purchase price of the vehicle. Now, customers will pay taxes on money due at the start of the lease and monthly lease payments. Because most vehicles have a residual value of 50 percent or more, this change reduces the taxes owed by new lessees by 50 percent or more.
For example, before January 1, 2015, if an Illinois resident leased a $27,000 vehicle for 36 months with no money down, they’d expect to pay about $1,890 in state taxes. After January 1, 2015, the same resident would pay just $945 in taxes – assuming the vehicle had a residual value of 50 percent. This is a savings of $945, totaling to more than $25 per month.
When leasing a car or truck, lease payments are typically lower than loan payments, so you can typically expect to get more car for less money. Leasing also makes sense if you don’t have a large down payment. Another benefit of leasing versus buying is it allows you to have the newest technology, and latest safety features in a vehicle you may not have been able to afford new. For these great reasons, and adding in the new lease tax law, leasing a vehicle could start making more sense for a lot of Illinois drivers.
If leasing a new Chevy car or truck is something you’re interested in, visit Currie Chevy today to see all the great possibilities of Chevy models you can afford when you lease instead of buy. Come browse our showroom floor or check out our online inventory. We are conveniently located at 8401 West Roosevelt Road, Forest Park, IL, 60130.