Purchasing a car is an important financial decision that a person should approach carefully and diligently. Many people determine that it is in their best financial interests to purchase a used car. As with any large purchase, the buyer should feel that his vehicle is as-advertised and in good working order. Illinois has a number of laws and statutes regarding the sale and taxation of used vehicles.
Implied Warranty
Illinois has laws regarding an implied warranty on the sale of most items sold in the state. This implied warranty states that the vehicle is fit for use according to the purpose that the vehicle was intended. Additionally, the implied warranty law states that vehicles that are fraudulently sold with a false odometer reading are not able to be sold unless the vehicle is designated for sale "as-is." Implied warranties can be avoided by used vehicle dealers by designating vehicles that are not merchantable with the "as-is" label.
Lemon Law
The Illinois Lemon Law is very specific in relation to used vehicles. Illinois's Lemon Law specifically does not cover used car purchases but does provide used car buyers with a thin layer of protection. This law states that a used car dealer must use specific language to indicate that a vehicle is sold "as-is" and is not under an implied warranty. Dealers that infringe upon this law are liable for a percentage of the repair costs of the vehicle depending upon its age. (See References 2)
Unfair or Deceptive Acts or Practices
Illinois's laws regarding the unfair or deceptive sales of motor vehicles are collectively known as Unfair or Deceptive Acts or Practices (UDAP). This set of laws specifically bans certain unfair or deceptive types of used car sales. The UDAP states that a used vehicle dealer may not attempt to sell a used vehicle under the guise of a new vehicle, may not neglect to disclose physical or mechanical damage to the vehicle and may not neglect to notify the potential buyer that the vehicle in question was returned during a lemon law dispute, in addition to other violations of the law.
Sales Taxes
Illinois requires that each vehicle presented for title in the state must be assessed the proper sales tax, which must be paid before the vehicle can receive an Illinois vehicle title. If the owner purchased the vehicle in a different state and paid the sales tax in that state, he must complete form RUT-25 that lists the amount of the sale and the amount of tax paid, exempting the owner from paying the Illinois state tax. However, if the vehicle is purchased within the state of Illinois, the vehicle owner should complete form ST-556 and pay the tax that is owed. The Form ST-556 is often completed by the used vehicle dealer, and the taxes are paid at the time of purchase.
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