A new federal car loan incentive could save buyers thousands in interest, but the fine print and model exclusions mean many people won’t get close
Those in the market for a new Ford in the US could save big thanks to President Trump’s One Big Beautiful Bill Act, signed in mid-2025. Through this act, eligible individuals can deduct up to $10,000 annually in interest paid on a qualifying new car loan. However, some popular Ford models miss out.
The bill is designed to promote American manufacturing, so only vehicles built in the United States are included. Around 80 percent of Ford’s US-market lineup is produced at domestic plants, which sounds like good odds, until you look at some of the popular models that don’t make the cut.
The Maverick, Bronco Sport, and Mustang Mach-E are all built in Mexico, and that rules them out.
Read: This One Line On Your Tax Return Could Soon Save You Thousands On Your Next Car
As listed on Ford’s consumer website, eligible models include the Mustang, Bronco, Escape, Expedition, Explorer, F-150, Ranger, Super Duty, Transit, E-Transit, and Econoline. Lincoln vehicles that qualify are the Aviator, Corsair, and Navigator.
But there are caveats. As noted by Autoblog, to qualify for the deduction, the vehicle must be purchased for personal use. That excludes leased cars, as well as any used primarily for business or commercial activity. There’s also an income cap, as the benefit begins to phase out for individuals earning more than $100,000, or $200,000 for married couples filing jointly.
Who Really Benefits?
The program runs through the end of 2028, though how much an individual saves will depend heavily on the cost of the vehicle and size of the loan. As we reported last year, only around 1 percent of new car loans generate $10,000 or more in annual interest. In real terms, a buyer would need to borrow roughly $112,000 to fully use the deduction.
That makes the benefit most attractive to those financing the upper end of the lineup. Big-ticket Fords like the F-150 Raptor ($79,005) and Bronco Raptor ($79,995) come close, but it’s the high-spec Expeditions, like the Tremor ($81,400) and King Ranch ($84,060), and especially the F-450 King Ranch, which starts at $94,890, that offer the best chance of hitting the threshold.
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Brad Anderson’s lifelong affair and fascination with cars started young. Before even graduating high school,… Read full bio

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