Why The NEW Car Loan Interest Deduction is NOT Worth It

Congress just passed a surprising new tax break in the Big Beautiful Bill that allows you to write off the interest on your car loan—but only for a limited time from 2025 to 2028. On the surface, this looks like free money, but when you dig into the math, the savings may not be worth the cost of car debt. In this video, I’ll break down exactly how the car loan interest deduction works, the income limits, who qualifies, and why this might actually cost you far more than it saves. If you’re thinking about buying a car just for the tax break, watch this first. 👨‍🏫 Become a Private Client 👩‍🏫 ➡️ https://www.firepsychat.com/privatecl... 📖 Get Your Free Resources 📖 ➡️ https://www.firepsychat.com/resources Become a Channel Member! ➡️    / @firepsychat   💵 Find Your Best HYSA ➡️ https://pnl.link/elJ8vnP ⏰ Table of Contents ⏰ 0:00 The New Car Loan Tax Deduction Explained 0:46 How it works 2:59 Income Phase-Out Range 4:11 Single individual making $120K 5:05 Married couple making $230K 5:47 Car requirements 7:56 Who benefits? 10:30 My Take on Car Debt vs. Investing #FIREPsyChat #FinancialIndependence #TaxTips 🎵 Music and Sound Effects Provided by Epidemic Sound 🎵 https://www.epidemicsound.com/referra... Disclaimer: This video is not in any form of personalized financial advice. I am solely sharing my personal experience and opinions. All Strategies, tips, suggestions, and recommendations shared are solely for entertainment and educational purposes only. There are financial risks associated with investing. You must conduct your own research and due diligence or seek the advice of a licensed advisor if necessary. Affiliate Disclosure: Some of the links on this webpage are affiliate links, meaning, at no additional cost to you, we may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact our opinions and comparisons.