PEORIA, Ill — A new state law will force some drivers to fork over more cash for a new car.
You might have to do the math, but if you are trading in your sports car or some other sweet ride, grab the calculator.
“I know for a fact people are upset about it, sadly a lot of people aren’t aware of at this particular point,” said Clinton Leman, general sales manager of BMW.
Clinton Leman is the general sales manager at BMW in Peoria and knows a new law on car trade-ins could impact sales.
“This is gonna affect car purchases of course, after going into 2020. And, I think it’s gonna change how frequently people do purchase vehicles,” said Leman.
The new law keeps the 6.25% tax credit but it’s now capped at $10,000.
A car being traded in at $10,000 will bring you a tax credit of 625 bucks.
Under this new change, a $50,000 ride will yield a tax credit of, you guessed it, $625. If you trade before 2020 you will still get 6.25% of your entire purchase. For a $30,000 transaction, you wind up with close to a $2,000 tax credit.
General sales manager Christopher Wood, explains one of the reasons for the new law.
“I’m not giving my client anything for that. They are not getting anything for that. I know the state of Illinois might think, hey we are gonna use that to sure up some pension fund or we’re gonna use that to fix these potholes that they got, but in my mind, my clients not getting anything for it,” said Wood.
State Senator, Dave Koehler, released a statement quoting – “While I support the infrastructure plan and its goals, this is a piece of it that needs to be reconsidered. We should be exploring other opportunities to collect the necessary revenue to Rebuild Illinois that would be less harmful to people who are already working incredibly hard to afford a new vehicle. I look forward to working toward a solution during the upcoming legislative session.”
“If they were thinking, hey maybe next summer, we’re thinking about trading in our tahoe, or trading in our escalade, or trading in their corvette or something like that, they might as well think about doing it now,” said Wood.