Pugi Volkswagen

2020 West Ogden Avenue
Directions Downers Grove, IL 60515

  • Sales: (630) 964-9500
  • Service: (888) 431-8071
  • Parts: (877) 811-2612

NEW TAX LAW COMING JANUARY 1, 2020


Earlier this year on June 28th Governor J.B.Prizker signed into law Senate Bill 690, which will mandate state and local sales tax will be applied to any trade-in value above $10,000. This is different than the current regulations that do not apply any sales tax on trade-in vehicles and takes place starting January 1, 2020.

Here's how it can impact you. If you were to trade in a vehicle that is worth $25,000 you would receive a tax break on the new purchase of $1,750. Under the new bill you now only receive a tax credit on just $10,000 of the trade in value which is only $700 resulting in a loss of $1,050.

Please contact us if you have any questions or need assistance.

Example Trade-In ValueTax Savings NowTax Savings 01/01/20Potential Loss
$12,500$875$700$175
$15,000$1,050$700$350
$17,500$1,225$700$525
$20,000$1,400$700$700
$22,500$1,575$700$875
$25,000$1,750$700$1,050