Cars For Sale By Owner For Sale in Mount Vernon, IL (2024)

FAQs

Who pays sales tax when selling a car privately in Illinois? ›

Who pays sales tax when selling a car privately in Illinois? Buyers must pay a transfer tax when they buy a car from a private seller in Illinois although this tax is lower when you buy from a private party than when you buy from a Dealer. This tax is paid directly to the Illinois Department of Revenue.

Purchasing from a Private Owner

If a vehicle is purchased from someone other than a dealer, within 20 days of purchase the Secretary of State's office must receive the following: Application for Vehicle Transaction(s). Properly signed Certificate of Title in the seller's name. Payment of title/license plate fees.

Kelley Blue Book, known as KBB, is a trusted name in automotive valuation. With a vast database and an intuitive interface, KBB enables users to accurately estimate the value of new and used vehicles. Simply enter details like make, model, mileage, condition, and location to get a tailored valuation.

In general, accepting cash for your car is by far the safest way to make sure you get the full, exact payment.

If you had the vehicle titled in another state for more than three months, no Illinois tax is due, but you still must file Form RUT-25 to reflect that fact. If you are leasing the vehicle from an unregistered out-of-state retailer, you must use Form RUT-25-LSE to report the transaction.

Vehicle title jumping refers to transferring a vehicle's title to another owner without registering it in their name. This practice is often carried out to avoid paying taxes, school fees, or car registration fees associated with the transfer.

Illinois Car (Vehicle) Bill of Sale

Illinois doesn't require a bill of sale and the state doesn't have a standardized form for one. But, that doesn't mean you can't create your own as proof of the transaction to protect your interests.

How old should a car be for best value? ›

The “sweet spot” for purchasing a used car is between 2 to 5 years old. This is the age range where the car has already gone through the steepest part of its depreciation curve, but it's still relatively new and in good condition.

If you want the best price for your car, consider placing an ad on a private seller marketplace or to potential buyers in your local area. However, dealers and online car buying services may be your best choice if you want an easy process with a quick turnaround.

Looking up a vehicle's safety rating, recalls, and full history report is a good place to start. In addition to online research, you should have a checklist of features you want in a used car and a mechanic lined up who can fully inspect the vehicle before purchasing.

The 20/4/10 rule encourages you to put down at least 20% of the total price of your vehicle, which will lower the overall amount you borrow and reduce the interest you'll pay over the life of the loan.

Key takeaways

To gift someone a vehicle, you must transfer the vehicle title to their name and create a bill of sale. Selling a vehicle for $1 instead of gifting it could result in your recipient paying sales tax based on the car's fair market value — it's better to stick with the official gifting process.

When you sell and/or release interest in a vehicle that is titled and/or registered in the State of Illinois, this form must be immediately completed and mailed to the Secretary of State Vehicle Services Department to ensure that your responsibility for the vehicle is released.

Proof of Temporary Registration For Private Party Purchase - A person who purchases a vehicle from a private party without the services of a dealer or remittance agent may legally operate the vehicle for a 24-hour period with possession of the title for transit to an agent or a Secretary of State facility.