New Auto Loan Tax Update for 2025 Vehicle Purchases 

If you purchased a new vehicle in 2025, there’s an important tax update you’ll want to know about.

A recent federal tax change may allow some borrowers to deduct part of the interest they paid on their auto loan when filing their 2025 taxes. It’s something new, and we didn’t want you to miss it.

Here’s the quick rundown

  • You may be able to deduct up to $10,000 in auto loan interest paid in 2025.
  • The vehicle must be manufactured (assembled) in the United States.
  • This applies to personal-use vehicles, such as cars, SUVs, and light trucks.
  • Income limits and other rules do apply.

Important tax form information

In future years, you may receive a separate tax form from us showing the total vehicle loan interest you paid during the year. The IRS has proposed a new form called Form 1098-VLI (Vehicle Loan Interest) for this purpose.

The draft IRS form includes language similar to the following:

Caution: The amount shown may not be fully deductible by you. Limits based on income and other factors may apply.
This is important tax information and is being reported to the IRS.

The draft form and its instructions are available online and may be helpful to you and your tax professional when preparing your return.

Step 1: Check where your vehicle was made

Finding the final assembly location is easy. Just enter your 17-digit VIN (Vehicle Identification Number) here:
👉 VIN Decoder: https://vpic.nhtsa.dot.gov/decoder/

Step 2: Find your 2025 interest paid

When tax time rolls around, you can find the total interest you paid in your eStatements through the CPM Anytime App:

  • Login to CPM Anytime App 
  • Select More (three dots on the lower right)
  • Choose eDocuments
  • Look for the Auto Loan section on your 12/31/2025 Statement

If you don’t see it or have questions, give us a call at 800.255.1513—we’re happy to help.

Step 3: Learn more about other tax changes

There are a few additional updates included in this tax law that may affect you as well.
👉 Learn more here: https://cpmfed.enrich.org/articles/tax-changes-under-the-one-big-beautiful-bill-act-of-2025

As always, this information is general and not tax advice. A tax professional can help you decide how it fits your situation.

At CPM, we’re always looking out for our members and sharing updates that matter—because your financial well-being matters.