Tesla North America has dropped a tantalizing offer that might just tip the scales for prospective buyers: up to $10,000 in auto loan interest now deductible, stackable with the $7,500 federal tax credit, and paired with the promise of zero gas costs and minimal maintenance. But is this deal compelling enough to finally bite on a Tesla, especially a popular model like the Model Y?
Let’s break it down. The new U.S. tax deduction, introduced under H.R. 1 (the “One Big Beautiful Bill Act”), allows Americans to deduct up to $10,000 annually in auto loan interest for U.S.-assembled vehicles like Tesla’s Model 3 and Model Y, effective through 2028. Combined with the $7,500 EV tax credit (if delivered by September 30, 2025), this could slash your upfront costs significantly. For a $50,000 Model Y, that’s potentially $17,500 in tax savings. Add in long-term savings—around $7,000 on fuel and $2,000 on maintenance over five years compared to a gas car—and the financial case strengthens.
However, there are caveats. The $10,000 deduction applies only to the taxable portion of interest (e.g., at 5% on a $40,000 loan, savings might be closer to $1,500-$2,000 annually depending on your tax bracket). You’ll still pay interest upfront, and current loan rates (often 5-6%) could offset some benefits.
For Tesla enthusiasts, the zero-emission lifestyle and cutting-edge tech remain strong draws. If you’re on the fence, this deal enhances the value proposition, especially with low maintenance costs ($3,994
over 10 years for a Model Y). But weigh your loan terms and tax situation.
Is this enough to finally get you to bite on a Tesla?