Edmunds says that in MN, the average new car loan rate is 5 to 6 percent. That is the reality of today's market.




No matter how much the current administration would like it we aren't seeing 2 percent rates for some time barring a black swan event. June CPI numbers came in hotter than expected, 2.7 percent.

In Theory... if what you are saying is true...

If you make $50,000 a year... 20% of that = $10,000. (being taxed 20% on your check, which is low)

If your tax rate is 20 percent you'd save 400 dollars to pay 2000 in interest

It's silly to let people to write off interest on a car loan for non business use

First off is a little summary that I copied off the interweb....

"Starting January 1, 2025, taxpayers can deduct interest on certain qualified auto loans—but only if the vehicle and loan meet specific federal criteria.
Here’s what qualifies:
Up to $10,000 per year of interest on a qualifying auto loan can be deducted from your federal income.
Vehicle must be assembled in the United States; final assembly must occur within the U.S.
Only new vehicles—used vehicles do not qualify.
The loan must be secured by a first lien on the vehicle (i.e., the lender has the primary claim if you default).
The vehicle must be for personal use only; commercial use or fleet vehicles are excluded.
A valid Vehicle Identification Number (VIN) must be reported on your tax return.
This is an above-the-line deduction, meaning you don’t need to itemize to claim it—an important feature for the many taxpayers who now take the standard deduction."

If the tax rate on my Fed taxable income is 20% and the loan interest is 8%... Does that mean I come out 12% ahead on the interest paid?
There has to be something I'm missing here....