Learn How Your Ford Could Help You Save at Tax Time in San Antonio, TX

If you're thinking about financing a new Ford, here’s some good news: your next purchase might qualify for a vehicle loan tax deduction. At Red McCombs Ford in San Antonio, TX, we're helping drivers understand how auto loan interest could offer real tax benefits.

This isn’t just about getting behind the wheel of your favorite Ford models like the Bronco or Expedition; it’s about making smart financial moves, too.

What Changed for Taxpayers with Auto Loans?

A recently passed federal rule lets eligible buyers deduct part of the interest they pay on car loans used to buy new vehicles. This applies to certain Ford vehicles, specifically those assembled in the United States and used for personal (not commercial) purposes.

Instead of a tax credit, which directly reduces what you owe, this deduction lowers your gross income before taxes are calculated. For many taxpayers, that means a lower tax bill when they file.

Not Every Ford Qualifies, Here’s What to Look For

To benefit from the Ford vehicle loan tax deduction, the vehicle must check a few important boxes:

• New, not used or leased
• Final assembly must take place in the U.S.
• Personal use only
• Weighs less than 14,000 pounds

So, what does that look like in real life? Think of models like:

• Ford F-150
• Ford Super Duty
• Ford Bronco
• Ford Expedition
• Ford Escape
• Ford Explorer

What’s the Catch? Income Limits and Filing Rules

Not everyone qualifies. Here's what you need to know about eligibility:

• You need to be the primary borrower on the loan
• You must itemize deductions (not use the standard deduction)
• Your income must fall under the cap set by the IRS
• The vehicle must be financed, not paid in full upfront

Since the IRS updates tax rules yearly, you’ll want to work with a tax professional to confirm your deductible amount for the tax year you're filing.

Why this Deduction Matters for San Antonio Buyers

Here’s where it gets real: you could deduct up to $10,000 in annual interest from your taxable income. That’s significant. Especially when financing higher-trim Ford vehicles with premium features, that early loan interest adds up.

And because the benefit applies retroactively to loans from January 1, 2025, your purchase today could start working for you on next year’s tax return.

Fast Facts: The Ford Vehicle Loan Deduction at a Glance

• Only applies to new vehicles
• Assembly must occur in the United States
• Deduction is for the interest paid on your loan, not the principal
• IRS guidelines will confirm details, so stay updated
• Ends in 2028 unless extended by Congress

How to Maximize the Tax Benefit at Red McCombs Ford

If you want to take advantage of this federal vehicle incentive, here’s how we can help:

• We’ll show you eligible Ford models
• We’ll verify VINs for final assembly locations
• Our finance team will walk you through loan options
• We’ll provide documentation for your tax advisor
• You’ll leave with confidence in your vehicle and your paperwork

We Make It Easy to Buy Smart and Drive Smarter

At Red McCombs Ford in San Antonio, we’re proud to serve drivers who know value when they see it. Whether you're shopping for a Ford Super Duty, Ford Bronco, or any of our other incredible models, we’re here to help you find a vehicle that qualifies for every advantage available, including a possible auto loan interest deduction.

Get started with a finance application or visit our showroom today. We'll help you explore eligible Ford vehicles, review your financing options, and make sure you're set up for potential tax savings.

*Disclaimer: This content was drafted with AI assistance for initial drafting, reviewed by a subject-matter expert for accuracy, and edited by our team of writers and editors.