New Car Loan Interest Deduction: Which Vehicles and Buyers Qualify

Rendering of a cartoon model blue car.

Last year, data show Americans drove away from dealerships with more than 16.3 million new vehicles, with roughly 80% of buyers reportedly relying on financing to purchase.

So far in 2026, average car prices are about $50,326, according to Kelley Blue Book, with interest rates for car loans hovering around an average of 7.0%.