License fees in IL can be paid upfront at time of registration or rolled into your monthly lease payment. We use a title agency in IL and the fee is about $175.00 for license plates, registration, and the agency fee.

I'm trying to figure out what my monthly taxes will add up to rolled into my payment. I live in Chicago. The calculation of what taxes would add to a payment doesn't seem right. The sales tax in Chicago is 8.875%

$38232 x .08875 tax= $3393
$3393/36months= $94.25/month in taxes.

Pleeease tell me I'm wrong. I have to be. What's missing?

Thanks for your question.

Just to clarify ... Sales tax is due upfront in Illinois and yours was simply part of the capitalized cost that your lease payment was based on. Your capitalized cost included the price of the vehicle, the sales tax, and probably some other fees as well. The dealer or leasing company that set up your lease paid the lump-sum tax upfront to the state at the beginning of the lease in order to register your vehicle. You could have opted to pay your tax along with your first monthly payment and, if you had, your monthly payment would have been a smaller amount.

I hope this helps. Let us know if you have further questions.

You can roll the taxes into the CAP cost, and pay them over the term of the lease. You can do this with just about any cost on a lease, including acquisition fee.
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Anderson smith

I live in Chicago and I am going to assume remaining 16 month of an existing lease originated in Michigan - state which obviously has a different tax lease policy. Would I have to pay full tax on the full selling price of a leased vehicle?

Thank you.