How the New Tax Law is Lowering the overall cost of financing a vehicle.

Previously, interest on auto loans was not tax-deductible. The New Tax Lawl has changed that by making car loan interest deductible for personal vehicles. Now, new owners can get a tax deduction equivalent to the interest on their loan, up to $10,000 per calendar year. In short, expect a lower overall cost when you buy your new Toyota!

Let’s take a closer look at the details and eligibility:

Deduction Scope: Any interest paid on a new vehicle loan qualifies. Leases are not included.
Vehicle Cap: The deduction applies to vehicles priced at up to $80,000.
Loan Term Limit: Only loans of up to 72 months (6 years) are eligible.
Income Phase-Outs: Higher-income earners (above $100,000 per individual or $200,000 per joint filer) will see reduced deduction limits.
Restrictions: The vehicle being purchased must be assembled in the U.S. and cannot have a gross vehicle weight over 14,000 pounds.
Timeframe: Interest payments on cars purchased on or after Jan. 1, 2025 are deductible. The deduction ends on Dec. 31, 2029, unless it is extended.