Pub. 1 2023-2024 Directory

28 The statutory warranty does not extend to damage that occurs after the sale of the vehicle resulting from off-road use, racing, towing, abuse, misuse, neglect, failure to perform regular maintenance or failure to maintain adequate oil, coolant or other required fluids or lubricants. Furthermore, the warranty is not violated if an alleged nonconformity does not substantially impair the use and market value of the vehicle or if the alleged nonconformity results from abuse, neglect or unauthorized modifications or alterations of the vehicle. If a covered vehicle develops a powertrain problem within the 15-day/500-mile period, the consumer is required to provide reasonable notice no later than two (2) days after the 15-day statutory period by text, phone, in writing or in person. The dealer shall be provided with a reasonable opportunity to fix the defect. The maximum liability of a seller for repairs is limited to the purchase price paid for the used motor vehicle, to be refunded to the consumer or lender, as applicable, in exchange for the return of the vehicle. Coverage on particular components can be waived if the dealer informs the customer in writing at the time of sale about a particular problem and the customer signs and acknowledges that he has been told of the problem. A statutory disclosure of this warranty must be provided to the customer at the time of sale. The warranty disclosure must be on the Purchase Contract or a separate document provided at the time of sale in at least 10-point bold font and must be signed by the customer. Unless the sale is exempt, dealers can no longer use the “As-Is” page of the Buyers Guide. Instead, dealers should use the “Implied Warranties Only” Buyers Guide and mark the “Implied Warranties Only” box if they only want to provide the required statutory warranty. To avoid unintentionally giving other implied warranties, dealers may also want to add a description in the Buyers Guide as to what the implied warranty under Illinois law is, or just refer to the limited powertrain warranty required by Section 2L of the Illinois Consumer Fraud and Deceptive Business Practices Act. If a dealer wishes to offer additional warranty coverage, he should mark the “Dealer Warranty” box, and then select full or limited warranty as appropriate. If the dealer’s warranty provides coverage equal to or greater than the 15-day/500-mile statutory warranty, no additional disclosures are needed. If the dealer warranty does not provide at least this coverage, then the dealer must describe both the 15-day/500-mile statutory limited powertrain coverage and his extended warranty coverage. QUESTION 19: Can you take the benefit of a sales tax exemption for educational, charitable, or religious organizations when leasing a vehicle rather than selling? No. That sales tax exemption only applies to sales, not leases. The only exemption for leases (and sales) is a lease to a governmental body with a valid Illinois exemption number.

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