Leasing Cars to Get Cheaper in Illinois - Wandtv.com, NewsCenter17, StormCenter17, Central Illinois News-

Leasing Cars to Get Cheaper in Illinois

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     DECATUR-When you lease a car you have to pay taxes on the full purchase price even though you might only drive it for a few years.
    But a new law will change that.
     On Central Illinois roads, a minority of cars are leased.  Poage business manager Nichole Redpath says the number of drivers leasing cars could grow because of a new law.
    "It's going to save you money," Redpath says.  "I mean everyone's looking to save money."
    In Illinois, to lease a new car, you pay sales tax on the full price of the car.
    But the new law taxes only what you pay for the lease.
     "Based on a 35 or 40 thousand dollar vehicle-it's probably going to lower your lease payment 35-40 dollars per month," Redpath says.
    Adding up to hundreds each year you lease, making it quite a bit cheaper to get behind the wheel.
    "I think that it's about time that Illinois stepped up and made a commitment to leasing vehicles," Redpath says.
    At Miles Chevrolet, sales manager Todd Rogers points out it won't drive down the cost for everyone.
    "If you have a late model trade-in that you plan to use toward a lease, there may be an advantage of doing so in the near future," Rogers says.
    Before the state shifts gear into the new law.
    That law takes effect January 1st.  Illinois will be added to a list of 47 states who already tax leases this way. 


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