When you buy your new Ford at Parks Ford Hendersonville, you may qualify for a tax deduction up to $10,000 on qualifying models with the No Tax on Car Loan Interest deduction. Our team is here to help you with understanding the facts about what is the new deduction, who qualifies, and what new Ford models are eligible for the tax deduction!
As part of the 2025 One Big Beautiful Bill Act (OBBBA), this federal tax deduction program allows eligible buyers to deduct up to $10,000 per year on interest paid* on qualifying new car loans. The actual deduction depends on the amount of interest paid during the taxable years of 2025 through 2028, and excludes lease payments and cash purchases. This is an above-the-line tax deduction, regardless of itemizing or using standard deductions.
You may qualify if your modified adjusted gross income meets certain criteria limits. The deduction phases out for taxpayers exceeding a modified adjusted gross income of $100,000 for single filers, and $200,000 for married filing jointly.
Ford models assembled in the United States that may be eligible for this federal tax incentive program include the Mustang (Flat Rock, MI), Ranger (Wayne, MI), Explorer (Chicago, IL), Escape (Louisville, KY), Expedition (Louisville, KY), and the F-150 (assembled at Dearborn Truck in Dearborn, MI, or Kansas City Assembly in Claycomo, MO).
With this tax break, buying a new Ford with a qualified auto loan lets you upgrade to the most advanced technology, safety features, and warranty coverage, all while maximizing your financial return. Keep in mind, it's important to inspect the "Final Assembly Point" on the window sticker of the exact new model that you buy. You can also double-check the VIN using NHTSA VIN decoder to confirm details.
If you’re in Hendersonville or surrounding areas and considering a new Ford truck, SUV or car, don’t wait! Expand your federal tax savings on your next new auto loan for this tax-year. If you have any questions about which new model qualifies or how the auto loan deduction works, contact us today!
*Deduction is available for eligible buyers who finance a new vehicle assembled in the U.S. Vehicle must be purchased for personal use. Lease vehicles and vehicles used for business or commercial use are not eligible. Deduction is available for tax years 2025 through 2028, for interest paid on new vehicles financed after December 31, 2024. Deduction begins to phase out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers). The amount of your tax savings will depend on your individual tax circumstances. Please consult with your own tax or legal professional to determine your individual eligibility. This information does not constitute tax or legal advice. For additional information, go to https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors#!adchoices
