Protecting and promoting the interests of franchised dealers throughout Illinois

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My name is Mike Ettleson, and I am the Chairman of your state association. I would like to update you on the changes that took affect in our industry starting January 1st.

$10,000 Trade-In Cap
As of January 1, 2020, the tax credit for a motor vehicle trade-in is now capped at $10,000. For example, a customer who trades in a vehicle valued at $20,000 against the purchase of a $36,000 vehicle previously received a tax credit for the entire value of the trade-in and pays tax on the $16,000 difference. However, as of January 1st, the same customer would receive a tax credit for only $10,000 and pay tax on $26,000—a $625 increase.

The Illinois Department of Revenue has issued a Frequently Asked Questions Bulletin with additional information about how the $10,000 Trade-In Credit Cap will affect your business in 2020. The Department's FAQ Bulletin can be found here

Thank you to the many dealers who participated in IADA’s advocacy campaign and contacted their legislators and the Governor. IADA will reach out to you again during the Spring Session when we attempt to reverse the trade-in cap.

Documentary Service Fee Increases to $300
IADA-backed legislation to increase the “Doc Fee” to $300, started January 1st, remained intact, despite concern that the Doc Fee increase would get rolled back. The Doc Fee increase will help to reimburse dealers for the ever-expanding list of State and federal mandates related to the sale of motor vehicles.

News

1 Jan

Jan 1, 2020

2020 Changes

As of January 1st:

  • New registration fees took effect. Click here for a full listing.
  • The tax credit for a motor vehicle trade-in is now capped at $10,000.
  • IADA-backed legislation increased the “Doc Fee” to $300.
13 Feb

Feb 13, 2020

IADA-CVR Title & Registration Seminar

IADA Univeristy offers FREE Title & Registration Seminar!

Location: IADA Office - 300 W. Edwards St. - Springfield
Time: 9:30 a.m. - 12:00 p.m.
To register: simply email Mike Healey, mhealey@illinoisdealers.com, with your name and dealership.

14 Mar

Mar 14, 2020

IADA CATA Spring Conference

March 14-18, 2020
JW Marriott - Marco Island, Florida
Register here!

Blog

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2020 Posters now available for purchase.
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Seats saved for the 1st 20 each month.
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Click here for the 2020 maximum allowable documentary fee.
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The Attorney General's Office advises on the most common motor vehicle advertising violations, click on post to continue reading.

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