Buying a used car is an economical decision for drivers who need a vehicle to commute to work or travel with the convenience of personal transportation. The state of Illinois has laws through its Attorney General's office and Department of Revenue for selling used cars that both buyers and sellers need to be mindful of to ensure a legal transaction.
Buyer Protection
Illinois has several laws that are intended to protect used car buyers. While the Illinois Lemon Law applies primarily to new cars, it does extend coverage to used vehicles that are less than one year old and have less than 12,000 total miles. If a car has major problems within this period that the dealer can't remedy with multiple repair attempts, and the car is unable to be driven for a total of 30 days, the buyer can request mediation through the state to enforce the manufacturer's warranty and demand a refund or comparable replacement vehicle.
Illinois also recognizes implied warranties, which simply means that used car dealers are expected to disclose any known mechanical problems before selling a car. The Illinois Unfair and Deceptive Acts and Practices (UDAP) law makes it illegal for used car dealers to make false claims about a vehicle or use sales tactics that intentionally deceive the buyer.
Illinois Used Car Warranty Law
The Illinois Used Car Warranty Law is a piece of legislation that creates specific warranty terms for the powertrain on used cars. This means used car dealers are liable for damage to the engine, transmission and other drive components, as long as it doesn't result from an accident or owner negligence. The Illinois Used Car Warranty Law covers all used cars for 30 days from the time of sale. For cars that are less than two years old, the used car seller must pay for 50 percent of the damage to powertrain components. This amount falls to a 25 percent share for vehicles between two and three years old, and ten percent for vehicles between three and four years old. Beyond this, the Illinois Used Car Warranty Law does not require dealers to pay for any portion of repairs.
Taxes
Car buyers in Illinois must submit sales tax to the state and county, as with any other retail purchase. To enforce this law, Illinois requires proof of tax whenever a driver applies for a new title on a recently-purchased used car. The Illinois Department of Revenue offers three different forms for Illinois drivers to submit tax on a used car. Form RUT-50 is for drivers who buy a used car from a private party or receive it as a gift. Form RUT-25 is for drivers who buy a car out-of-state and bring it to Illinois to register and title. Finally, drivers who purchase a car that was previously leased from an out-of-state leasing company must pay tax by filing form ST-556. In each case local sales tax rates apply.
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