A new provision in Public Law Number 119-21 – also known as the One, Big, Beautiful Bill Act (OBBBA) – which was signed into law on July 4, 2025, allows individual taxpayers to deduct interest paid on a loan towards the purchase of an automobile. In other words, you can save money when purchasing a new vehicle. With average vehicle transaction prices continuing to climb for myriad economic reasons, any relief for consumers is welcomed.
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