Ask Terry Questions Car Purchase Before Year-End

Car Purchase Before Year-End

By Terry Savage on December 22, 2019 | Wild Card

I am wondering if you can provide more info on the benefit to buying a car before 2020. We wouldn’t be trading in, but we need a new car and have a pre-approval from a bank. Please help me decide if it is smarter to buy now or wait until 2020. Thank you!

Terry Says

If you saw me mention this on TV in Chicago last week, I was talking about the fact that the State of Illinois now allows you to deduct only $10,000 worth of trade-in value from the purchase price of your new car, when it comes to paying Illinois sales taxes! (The state is scrounging for every bit of money it can get!) That rule starts on January 1, 2020, so I suggested people buy before the end of the year to avoid this sales tax bump.
The other good reason to buy at year-end is that dealers want to clear their inventory and set sales records before the year ends, so they may offer you a better deal!



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