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Mon April 21, 2014
Quinn Signs Law Intended To Lower Cost Of Auto Leasing
Gov. Pat Quinn on Monday signed legislation intended to lower the cost of leasing a car in Illinois. Backers of the law say far fewer people lease in Illinois than in surrounding states.
Auto dealers say leasing hasn't been as attractive in Illinois because the quoted price includes tax as though you were buying the vehicle outright. That's because of a complex system of credits dealers get to lower their tax burden — savings that are not necessarily passed on to customers.
The new law taxes just what you pay for a lease.
Larry Doll, with the Illinois Automobile Dealers Association, says the change should make leasing more attractive.
"Dealers will be able to offer a more competitive lease rate in line with what you're seeing in our bordering states," Doll says.
The dealers say on a lease of a $32,000 vehicle, payments could be lowered by $60 a month.
The Illinois Department of Revenue says it doesn't expect to lose any tax revenue. It says the change ensures people are not paying more in sales taxes to the leasing company than the company is paying to Illinois.