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US consumers can now deduct car loan interest, but only if the vehicle's final assembly occurred in the US.
The deduction applies to new cars financed with a secured auto loan for personal use, provided the loan originated within Congress's specified window. Foreign-badged cars assembled in the US qualify,
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US average auto loan interest rates in Q1 2026: New cars 6.39%, used cars 11.43%
According to Experian's State of the Automotive Finance Market report, the average interest rate for new car loans in the US was 6.39% in the first quarter of 2026, while used car loan rates averaged
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US consumers can now deduct car loan interest, but only if the vehicle's final assembly occurred in the US.
The deduction applies to new cars financed with a secured auto loan for personal use, provided the loan originated within Congress's specified window. Foreign-badged cars assembled in the US qualify,
-
US average auto loan interest rates in Q1 2026: New cars 6.39%, used cars 11.43%
According to Experian's State of the Automotive Finance Market report, the average interest rate for new car loans in the US was 6.39% in the first quarter of 2026, while used car loan rates averaged
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