Saturday, March 28, 2009

Moving a lease to Chicago?

My husband and I are moving to Chicago at the end of June. Our lease on our current car is up, so we need to go ahead and lease a new one. With all the nonsense surrounding taxes on registering cars in Illinois, we don%26#039;t know what the best course of action is. Should we lease a car here, and if so, will we pay taxes twice (to CA now and to IL when we register there)? Or should we find a way to wait and lease a car once we%26#039;re in Illinois? Or will Illinois screw us equally either way?
Moving a lease to Chicago?
That taxes have to be paid in Illinois, period. Talk to the leasing company. If you lease from a company that is licenced to lease in both states, you will pay CA taxes up to the date you transfer, then Illinois taxes. If you lease from a company that is not licenced to lease in both, you will have all kinds of problems, possibly even been told you can%26#039;t take the car when you move, or the leasing company taking the taxes for CA, and Illinois collecting as well. As a broker and registrations agent, I registered many out-of-province leases, and for the most part the companies were licenced by our tax department, but it got messy if somebody had a lease from some small local company in their previous jurisdiction.





If the vehicle you want cannot be leased from a national leasing company, wait to get to Chicago, it will save a world of problems. If the lease is from somebody like Ford Credit, Chrysler Credit, etc, there is not likely to be a problem.
Moving a lease to Chicago?
If you are talking about sales taxes, No matter where you lease the car from, you do not have to pay them twice. They will be paid to the state/municipality of your actual address at the time of lease.

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