Pay Less in Taxes When You Finance a New Vehicle in Augusta, GA

If you’re planning to finance a Chrysler, Dodge, Jeep, or RAM vehicle at Milton Ruben CDJR, you may qualify for a powerful new perk: a federal tax deduction that applies to the interest paid on your auto loan.

Sound too good to be true? It’s real, and it could add up to serious savings at tax time. Here's what car buyers in Augusta, GA, need to know about this new Chrysler, Dodge, Jeep, or RAM vehicle loan tax deduction and how to claim it when purchasing a new vehicle.

Why the Government Is Rewarding Car Buyers

The federal auto loan interest deduction gives qualifying buyers the ability to reduce their gross income by the amount of interest they pay on a new vehicle loan. While it’s not a tax credit, it still lowers your taxable income, which can shrink your overall tax bill.

If you’re financing a vehicle, your monthly payments may now provide a new tax benefit.

Here's When the Deduction Starts

This deduction applies to vehicles financed or purchased on or after January 1, 2025. It’s part of a temporary program that runs through 2028 unless extended by new legislation.

This means that now is a great time to explore new vehicle specials and talk to our team about what qualifies.

What You Need to Qualify

Not everyone qualifies, but many do. Let’s take a look at what counts.

Vehicle Eligibility

To qualify as a deductible vehicle, it must:

• Be brand new (not used or leased)
• Be assembled in the U.S.
• Have a GVWR under 14,000 pounds
• Be used only for personal driving (no commercial or business use)

Buyer Eligibility

You must:

• Itemize your deductions when filing your taxes
• Stay within the income limits set by the IRS
• Use a qualified auto loan
• Confirm that your vehicle identification number (VIN) is included on the IRS’s eligibility list

Not sure if your dream vehicle qualifies? Our team will help you identify eligible vehicles from our Chrysler, Dodge, Jeep, or RAM inventory.

Estimate Your Tax Savings

You can deduct up to $10,000 per year in qualified interest. Your specific savings will depend on:

• How much interest you pay annually
• The loan amount and your interest rate
• Your gross income and tax filing status

The bigger the loan and the longer the term, the more deduction potential you may unlock.

Only Certain Loan Types Count

The IRS will only recognize loan interest if the loan is:

• From a qualified lender (such as a bank, credit union, or dealership financing center)
• Used exclusively to purchase a qualifying new vehicle

That means loans from credit cards, HELOCs, or personal lenders don’t count. Also, refinances are excluded.

Already Planning to Buy an EV or Hybrid?

You might be eligible for even more. If you choose an electric or hybrid vehicle and it qualifies for the EV tax credit, you may be able to stack that benefit with the vehicle interest deduction.

Two federal tax perks. One smart move.

Keep These Documents for Tax Season

Before filing your 2025 tax return, gather the following:

• Your loan paperwork
• An interest statement from your lender (Form 1098)
• Your vehicle’s VIN
• Proof of itemized deductions
• Your adjusted gross income

Not sure what to do with that paperwork? A qualified tax professional can help you sort it out.

Why it’s a Win for Georgia Drivers

At Milton Ruben CDJR, we work with drivers who can recognize a smart deal. The vehicle interest deduction adds real value to your auto loan, especially when you’re choosing from Chrysler, Dodge, Jeep, or RAM models that are already built with performance, tech, and style in mind.

Whether you're hauling, commuting, or weekend-wandering, your vehicle financing could pay off twice: once with the car, and once with the deduction.

Before You Sign, Double-Check This List

• Confirm your Chrysler, Dodge, Jeep, or RAM model is U.S.-assembled
• Use financing from an approved lender
• Ensure your loan is for a new, personal-use vehicle
• Plan to itemize deductions
• Verify your gross income meets eligibility
• Get ready to track loan interest

When you’re ready to buy, we’ll help you get the paperwork aligned with the IRS requirements.

Shop Smart, Save Smarter

If you’re searching for deductible vehicles that make sense for your life and your wallet, visit Milton Ruben CDJR in Augusta, GA. Our finance professionals can help you find the right loan, the right Chrysler, Dodge, Jeep, or RAM model, and the right new vehicle specials to stack even more value into your next purchase.

Let’s make your next vehicle work harder for you, on the road and on your taxes.

*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.