What Is the Auto Loan Interest Deduction?
Effective July 4, 2025, the One Big Beautiful Bill Act introduced a new federal incentive designed to help car buyers save money. This program allows eligible customers to deduct up to $10,000 per year in interest paid on a new vehicle loan.
That means your vehicle purchase could deliver savings long after you drive off the lot.
Key Benefits
-Up to $10,000 annual tax deduction on loan interest
-Applies to new vehicles only (not leases or used vehicles)
-Covers EV, hybrid, and gas-powered vehicles
-Available for loans originated between 2025-2028
Who Qualifies?
You may be eligible if:
-You purchase (not lease) a new vehicle
-The vehicle is for personal use (not commercial)
-The loan is secured by the vehicle
-The vehicle is assembled in the United States
-The vehicle has a GVWR under 14,000 lbs
Eligible Vehicles
Examples include:
-Ford F-150 & F-150 Lightning
-Ford Explorer & Escape
-Ford Bronco & Ranger
-Lincoln Navigator & Aviator
-Ford Mustang
Why Buy Now?
This limited-time federal incentive applies only to loans originating between January 1, 2025 and December 31, 2028. Combined with a wide selection of U.S.-assembled vehicles, this creates a strong financial advantage for today’s buyers.
Explore qualifying vehicles and take advantage of this new federal tax benefit today!
This information is provided for general informational purposes only and does not constitute tax or legal advice. Customers should consult a qualified tax professional regarding their individual eligibility and benefits.