Receive a Tax Credit for Your Trade-In

There are plenty of practical reasons to trade in your old car. Serra Honda of Champaign wants you to know about every new benefit you can possibly get. Today, we’re taking a look at a new law in Illinois that helps you claim a much larger tax credit on your trade-in than in the past.  

Trade-In Tax Credit Cap Removed

Due to current global issues with automotive supply chains, manufacturers have had trouble reaching their projected quotes. The market for new cars has fluctuated, with supply not quite meeting demand.  

This has raised the overall trade-in value of used cars. In 2020, a tax credit cap of $10,000 was established in Illinois as part of an infrastructure plan. Now, the reversal of this cap is resulting in maximized savings for consumers. 

For example, if you were to trade in a used car worth $20,000, you can claim a tax credit worth $2,000. This is double what you would have been able to claim before. 

Trade-In Tips to Keep in Mind 

Before you trade in your current vehicle for a new model at Serra Honda of Champaign, do some research first to get an idea of your vehicle’s value. The trade-in value might be different than the outright resale value, for instance.  

Also, make sure your car is in great condition before you trade it in. Is it due for an oil change or any other type of maintenance? Are there any pending repairs you need to schedule?

For more information about how to maximize your trade-in tax credit, contact Serra Honda of Champaign today. We can even help you value your trade and give your vehicle any last-minute adjustments.