Cerritos Chrysler Dodge Jeep Ram
New legislation is affecting auto loan tax deduction amounts and eligibility. Before you finance another vehicle, make sure you’re aware of every possible tax credit you can claim. To save you time, Cerritos CDJR put together this quick, skimmable overview so you can easily understand how new U.S. laws will impact auto loan interest, tax-deductible vehicles, who qualifies, and how much they can save when car shopping in Cerritos, CA.
Here’s a preview of how the One Big Beautiful Bill, or OBBB, will change auto loan tax deductions through 2028:
Signed into law on July 4, 2025, and effective through 2028, the One Big Beautiful Bill is designed to generate better auto loan tax deduction opportunities for U.S. taxpayers. Before the OBBB, U.S. citizens were not able to subtract vehicle loan interest from their yearly tax filings; this new law could enable more people to purchase the dependable transportation they need while also reducing their taxable income.
Rumors are claiming that the OBBB vehicle interest deduction creates “no tax on car loan interest” scenarios for eligible purchasers, but this is only true if your annual financing interest is $10,000 or less.1
If you and the vehicle you purchase meet the new requirements for an auto loan tax deduction, you’ll still pay interest each month on your car’s loan. However, when you file your personal taxes in April, you can deduct up to $10,000 of that paid interest from your income.1 In short, this vehicle interest deduction may enable U.S. citizens to file taxes in a lower tax bracket, therefore owing less money to state and federal governments.
Keep in mind that this new federal auto loan interest deduction can be claimed in addition to our dealership’s CDJR specials, so now is a fantastic time to browse our dealership for a Chrysler, Dodge, Jeep, or Ram model you love, sign a loan through our finance department, and enjoy layered auto loan advantages.
Individuals who finance qualifying vehicles for personal use and have modified adjusted gross incomes above $100,000 (individual) or $200,000 (joint filers) can participate in the new auto loan tax deduction.1 If you make more than these MAGI limits, your deduction amount will phase out in relation to your income. You cannot claim the OBBB auto loan tax deduction if you pay cash, sign a lease, or use the vehicle for commercial purposes.
Any Chrysler, Dodge, Jeep, and Ram vehicles with GVWRs less than 14,000 pounds that complete their final assemblies in the United States should qualify for the new auto loan tax deduction.1 Used vehicles do not qualify, and the car, truck, van, SUV, or motorcycle must be for personal use only.1 Based on these rules, the following new CDJR models have vehicle interest deduction eligibility:
Stellantis, the parent company of Chrysler Dodge Jeep Ram, has also announced its intention to invest $13 billion to expand their U.S.-based vehicle production in Illinois, Ohio, Michigan, and Indiana – all factors that could add even more CDJR models to this eligibility list.
Saving up to $10,000 on your next tax return is simple when you finance a qualifying Dodge, Ram, or Jeep vehicle from Cerritos CDJR. Our showroom is stocked with each eligible variant, so stop by and see us in Cerritos, CA, to choose your favorite trim, get your loan paperwork started, and take advantage of this auto loan tax deduction while it lasts. If you have additional questions about the OBBB and how it might impact your annual vehicle tax deduction, feel free to reach out – we’re always here to help.
01/02/2025
The dealer‘s sales team and the service team members were so kind and nice. Especially the sales team’s Tool and service team‘s DiThomas are the best I will definitely introduce this dealer to my friends I love my Jeep
1Reference to this third-party review/claim is solely for informational purposes and not to be relied upon. For more details, please visit https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors
