Car buyers in the West Chester area have a new way to save on their vehicle purchases thanks to the recently passed "One Big Beautiful Bill" (OBBB). The bill allows for a federal tax deduction of up to $10,000 per year in interest paid on auto loans for new vehicles assembled in the United States. Many popular Ford models, including the Ford F-150, Ford Bronco, and Ford Explorer, are built right here in America and qualify for these savings.
To check if a particular Ford vehicle is eligible, look at the 17-digit Vehicle Identification Number (VIN). If the VIN starts with a 1, 4, 5, or 7, that means it was assembled in the USA. You can find the VIN on the lower driver's side of the windshield, on your insurance card, or on the vehicle registration. Malvern residents can easily check eligibility by using the NHTSA's online OBBB tax deduction VIN lookup tool.
Some of Ford's most popular models built in US manufacturing plants include:
- Ford F-150 and F-150 Lightning pickup trucks
- Ford Bronco and Bronco Sport SUVs
- Ford Explorer, Expedition, and Escape SUVs
- Ford Mustang sports car
- Ford E-Transit and Transit Connect vans
- Ford Super Duty trucks (F-250, F-350, F-450)
There are a few important things to keep in mind about the auto loan interest deduction. First, it only applies to new vehicle purchases, not used cars. Second, lease payments are not eligible for the deduction, only auto loans. Finally, there are income limits - the deduction starts phasing out for single tax filers with adjusted gross income over $100,000 and married couples filing jointly with AGI over $200,000.
For car shoppers in Glen Mills, taking advantage of the interest deduction is easy - just make sure to buy an eligible Ford vehicle and keep track of your loan interest payments. Most lenders, including Ford Credit, will send out annual interest statements that you can use for tax filing purposes. And of course, be sure to consult with a tax professional about your specific situation.
At Fred Beans Ford of West Chester, we have a great selection of qualifying new Ford vehicles and expert financing professionals who can help you understand how the tax deductions work. Wilmington and New Castle residents are just a short drive away from savings at our location in West Chester. Stop by today to explore your options or fill out our online financing application to get started from home!