Peoria Public Radio Staff
Mon April 21, 2014
IL cost to lease cars might go down
When you lease a car, there's a good chance you're paying tax on the full cost of the vehicle. There's also a good chance the company is not passing that full tax payment on to the state, because of a complicated system of dealer credits.
The Illinois Automobile Dealers Association says the bottom line is: customers are paying more for leases, and that's hurting business. The group's Joe McMahon says while leasing accounts for a quarter of transactions elsewhere, in Illinois, it's only ten percent.
"With rising prices of vehicles, there's a big segment out there who make their vehicle decisions based on monthly payment. That's why we think we're lagging behind -- because of the tax."
The new law makes it so customers will only be taxed on monthly payments -- not the full cost of the car. The dealers say on a lease of a $32,000 vehicle, payments could be lowered by $60 a month.