First Principles of Car Buying
The monthly newsletter from Terry Thompson
First Principles of Car Buying
No. 10  |  October 2026
Terry Thompson
Safety
Affordability
Lifestyle Fit
Long-Term Value

Got it. I will be in touch within one business day.

Thanks for raising your hand.

Here is what happens next. I will look up where your vehicle was assembled, tell you plainly whether it meets the federal rule, and send you the VIN details your tax preparer will ask for. No charge, and no pitch attached.

While you wait, you can check it yourself

1. On a new vehicle, read the window sticker. The line you want says Final Assembly Point.

2. On a vehicle you bought new and already own, find the VIN. It sits on the driver's side dash where the windshield meets it, on the driver's door jamb, and on your insurance card. Run it through the free NHTSA VIN decoder and look at the plant location.

3. Bring the VIN and your loan paperwork to your tax preparer. The VIN has to go on the return.

The rules, short version

New, bought rather than leased, for personal use, financed with a loan that started after December 31, 2024, and assembled in the United States. The deduction is worth up to $10,000 of interest a year and runs through tax year 2028. It phases out above $100,000 of income, or $200,000 if you file jointly.

I am not a tax preparer, so confirm your own situation with yours before you file.

Want to talk sooner?

Call me, send a text, or pick a time that works for you.

Read the full October issue

Terry E. Thompson
Automotive Advisor & Author, First Principles of Car Buying

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