Legal Question in Consumer Law in Illinois

I have a business associate that is looking to purchase a vehicle but have me purchase the car in a different state because a significantly reduced tax amount. From what I understand the vehicle will then be sold almost right away. It would be purchased in my name, then the title transferred to another party. I would be paid for this, however because the price is so high, it seems suspicious. The vehicle is ~$97,000 which raises concerns. What ramifications could come from having the car purchased in my name then switched to someone else within a matter of days? Please let m know if you need additional clarification. I trust my gut and I believe is too good to be true.


Asked on 10/17/13, 8:38 am

1 Answer from Attorneys
Stephen Messutta

You're gut is good. When a car is purchased out of State and the intention is that it is to be brought to Illinois and registered here for any length of time, then if the Illinois tax is higher than the tax of the State where the car came from, you must pay the difference. So if this is a "scheme" to dodge Illinois taxes, and your name is anywhere in the mix, you may wind up being charged with not-so-fun things like tax fraud, which can include fines and jail sentences. If the intention is to evade other requirements that relate to being an interstate dealer, there are even more issues. Don't let your good name be used to "launder" car titles.

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Answered on 10/18/13, 1:42 pm


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