Illinois residents!  Welcome to car leasing!

Effective January 1st, 1015 the way that sales taxes are applied to car leases has been changed in Illinois to make car leasing a far more financially attractive alternative for financing a vehicle.  Prior to 2015, Illinois was just one of a handful of states that applied sales tax to the full price of the car in a lease.  For example, if you were leasing a $50,000 Mercedes Benz, you would have been required to pay sales tax on a full $50,000 and that would be financed in your lease.  In other states (and Illinois effective 2015) a lease is treated as more of a long term car rental with sales tax applied to the payments and the down payment themselves.  This can create a significant reduction in the price of leasing a car.  The Chicago Tribune has an excellent article on this tax change here.