Vehicle Interest Tax Deduction

YOU MAY QUALIFY TO DEDUCT UP TO $10,000¹ IN ANNUAL AUTO-LOAN INTEREST ON ELIGIBLE FORD VEHICLES.

Starting in 2025, a new federal law allows buyers of U.S.-assembled, personal-use vehicles to deduct up to $10,000 per year in auto-loan interest on their taxes. This temporary deduction, available through 2028, is designed to make financing more affordable while supporting domestic manufacturing.

Deduction Eligibility at a Glance

To qualify for the new auto-loan interest deduction, the vehicle must be a new car, SUV, truck, van, or motorcycle with a gross vehicle weight rating under 14,000 pounds, and its final assembly must take place in the United States (typically indicated by a VIN beginning with 1, 4, or 5, or confirmed on the window sticker). The vehicle must be used for personal—not commercial or fleet—purposes and financed through a secured auto loan originated after December 31, 2024, though refinancing may also qualify. Borrowers can deduct up to $10,000 in loan interest per year, with the full deduction available to individuals earning up to $100,000 AGI or joint filers earning up to $200,000, with benefits phasing out above those thresholds. The deduction is considered above-the-line, meaning taxpayers do not need to itemize, but they must include both the vehicle identification number (VIN) and the lender’s interest statement with their tax return. This program is available for tax years 2025 through 2028.

Consult your tax professional to determine eligibility and maximize your savings.

What Ford Models Qualify for the Auto-Loan Interest Deduction?

Across the country, several Ford assembly plants produce models that qualify:

Michigan Assembly Plant – Wayne, MI
Ford Bronco
Ford Ranger

Flat Rock Assembly Plant – Flat Rock, MI
Ford Mustang

Dearborn Truck Plant – Dearborn, MI
Ford F-150
Ford Super Duty (certain trims)

Rouge Electric Vehicle Center – Dearborn, MI
Ford F-150 Lightning

Kansas City Assembly Plant – Claycomo, MO
Ford F-150
Ford Transit (Cargo, Passenger, Cutaway, Chassis Cab)

Chicago Assembly Plant – Chicago, IL
Ford Explorer
Lincoln Aviator

Louisville Assembly Plant – Louisville, KY
Ford Escape
Lincoln Corsair

Kentucky Truck Plant – Louisville, KY
Ford Expedition / Expedition Max
Lincoln Navigator / Navigator L

Ohio Assembly Plant – Avon Lake, OH
Ford Super Duty Chassis Cabs
E-Series Cutaway
Transit Cutaway (certain configurations)

Why It Matters for Hawk Ford Buyers

• Supports Local Manufacturing
  Buying U.S.-assembled vehicles supports American workers—and may qualify you for a valuable tax break.
• Real Savings
  While not every borrower reaches the $10,000 cap, typical buyers financing $45K–$50K can save hundreds of dollars annually.
• Broad Eligibility
  Applies to both itemized and standard deduction filers, expanding benefits to a wide range of buyers.
  
  

What You Can Do at Hawk Ford of Carol Stream

1. Select a qualifying model—like the F-150, Explorer, or Mustang—assembled in the U.S.
2. Finance your purchase with a qualifying loan origin dated 2025 or later.
3. Check the VIN or window sticker to ensure final assembly was in the U.S.
4. Claim the deduction—up to $10,000 in interest—in your 2025–2028 tax filing (VIN required).
5. Verify income limits—deduction phases out beyond certain AGI thresholds.

Consult with your tax advisor to maximize your benefit.

¹Eligible individual buyers may take advantage of this deduction on new, qualifying vehicles assembled in the United States. It applies only to interest paid on new auto loans originated after December 31, 2024, and is available for tax years 2025 through 2028. This deduction is subject to federal rules, income limits, and other restrictions, and eligibility may change based on tax law or vehicle manufacturing considerations. Please consult a tax, legal, or accounting professional for guidance, as this information is provided for general purposes and does not constitute professional advice