May
30

Do I have to pay tax on the full retail price of a vehicle even if I am leasing it ?

By admin
retail lease

Car dealer in IL says it’s IL state law to collect sales tax on the full price of the car even if I am leasing it for only 2 years?

Is this true?

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Categories : lease back

3 Comments

1

unfortunatly yes that is true

2

You should contact the dealer commission or vehicle licensing division in IL before you do anything. That sounds odd to me too but I do title work in Ky and it’s different in every state. Good luck!

3
The Auto Evaluator™
June 4th, 2010 at 6:38 am

Yes.

Illinois charges vehicle tax on the full price for leases. If you lived in Indiana, you would only pay tax on the money down, rebates, and monthly payment. This can change a payment by even $100 more per month (Illinois v/s Indiana). I hope this helps to clarify.

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