Latest budget makes interest on American made cars fully deductible.

[johnmyster]

Scale TBD.

I think 80%+ people when they determine via their gut, they "need" a new car, nothin gunna get in their way if you follow. This may kick a few more in that pool, but qty TBD.

Agreed.

$10k of interest at 6% means one has $150k in auto loans.

Granted, lots of people are really bad with money. But if you're so bad with money that you have $150k in auto loans that you were going to have anyway, I'm not sure how much $3k in tax reduction (assumes 30% total fed + state marginal brackets) were going to impact your decision making process.

Seems like a nothingburger that reflects that John Q. Public really doesn't understand the difference between deduction and credit.

Pablo, as much as you and I disagree about amsoil products I think we get along in the off-topics.

 

[CKN]

36 months is a reasonable term. I've never had a car loan but if/when I do 36 or less would be the goal. I somewhat understand 48 or 60 months for some people, but IMO anything over 60 is bonkers and shouldn't exist.

Average miles driven per year-12,000 miles. 12,000 miles x 5 years= 60,000 miles. If you buy a low mile used or new vehicle it will easily last the term of the loan. You would need to perform the normal maintenance and maybe buy some tires.

What's the issue?

Vehicles cost what they cost.

 

[SwampSurvivor]

Not always, with stellar credit its not unusual to be able to get 0% specials
Yeah, it's possible you may have been able to get the amount of interest you might pay off the sticker price by not taking 0% but not as much today as in the past.

We dont do car loans but we did in Nov 2024 because 0% we financed the whole thing. The money we would have used in our savings account stays there collecting 4% which equals (I did the math one time but forgot) over $2000 in interest we collect on that money.
(I know we are an unusual example, they throw out these specials to get people in the door, most don't qualify)

When I bought the Forester back in 2017, I wasn't planning on financing but my credit was good enough to qualify for 0% interest and an additional $1200 discount for using Subaru's finance. No finance charges, etc.

 

[alarmguy]

When I bought the Forester back in 2017, I wasn't planning on financing but my credit was good enough to qualify for 0% interest and an additional $1200 discount for using Subaru's finance. No finance charges, etc.

Excellent, a reward for being responsible with debt is a great thing. I bet your insurance costs are lower than the average person too.

 

[Dave Hess]

Third, not second...

That’s the. American Dream in 2025.

 

[SwampSurvivor]

Excellent, a reward for being responsible with debt is a great thing. I bet your insurance costs are lower than the average person too.

Liability only I got rid of the Subaru and am rocking cheap beaters.

 

[supton]

Liability only I got rid of the Subaru and am rocking cheap beaters.

I miss those days. Would like to go back--never will, wife's car will likely "always" be something late model. But if I could go back to the rest of the fleet being cheap... my kids are still on my policy, so the policy isn't cheap.

 

[Pew]

I just checked the list of American-assembled cars....Toyota and Honda have the only affordable sedans on that list. The rest is dominated by luxury barges or trucks.

 

[JeffKeryk]

I just checked the list of American-assembled cars....Toyota and Honda have the only affordable sedans on that list. The rest is dominated by luxury barges or trucks.

Teslas, but not sure where you classify them.
I would like to see an American material content constraint as well.

 

[Pew]

Teslas, but not sure where you classify them.
I would like to see an American material content constraint as well.

Yes all teslas are built here but they also start over $40k and may not be a good only-1-car-needs-to-do-all; especially for a beginning family or straight out of school. I'm thinking affordable-affordable like base/mid trim Corolla and accord and low insurance.