The tax break is designed to make owning a car more affordable

By Mark Huffman of ConsumerAffairs

• A new federal tax deduction will allow eligible taxpayers to deduct interest paid on new car loans beginning this tax year.

• Lawmakers say the measure is designed to ease the burden of high auto prices and elevated interest rates.

• Its a top-line deduction, so taxpayers dont have to itemize to benefit.

No tax on tips and no tax on overtime got the most attention when Congress passed The One, Big Beautiful Bill, but theres another deduction in the legislation that could benefit consumers who purchased and financed a new car in 2025.

In a move aimed at easing the financial strain of buying a vehicle, the bill contained a new income tax deduction allowing eligible taxpayers to deduct interest paid on new car loans.

The deduction, which takes effect this tax year, comes as Americans continue to grapple with high vehicle prices and interest rates that have significantly increased monthly car payments.

Supporters say the measure could provide meaningful relief for middle-class households, while skeptics question how broadly the benefit will apply.

How the deduction works

Under the new provision, taxpayers can deduct interest paid on qualified auto loans used to purchase new personal vehicles. The deduction applies only to loans originated after the laws effective date Dec. 31, 2024 and is subject to income limits. The maximum deduction is $10,000.

According to congressional summaries, individuals earning up to a specified income threshold expected to phase out for higher earners will be eligible to deduct up to a capped amount of auto loan interest annually. The deduction can be claimed whether the taxpayer itemizes or takes the standard deduction, a feature lawmakers included to broaden access.

Why lawmakers acted now

The average price of a new vehicle remains significantly higher than it was before the pandemic, and interest rates on auto loans have climbed as the Federal Reserve has worked to combat inflation. Many buyers are now financing vehicles at rates that add thousands of dollars in interest over the life of a loan.

Consumer advocates have pointed out that transportation costs are one of the largest household expenses, particularly in areas without reliable public transit. Higher borrowing costs have pushed monthly payments to record levels for many consumers.

By allowing borrowers to deduct interest paid on their loans, lawmakers hope to soften the blow of elevated rates and make vehicle ownership more affordable.

Who benefits most?

Tax experts say the value of the deduction will vary depending on a taxpayers income, loan size, and interest rate.

For example, a borrower who pays $1,500 in auto loan interest during the year and falls within the eligible income bracket could reduce their taxable income by that amount. The actual tax savings would depend on their marginal tax rate.

Middle-income households are expected to see the greatest benefit. However, analysts caution that lower-income families who may owe little or no federal income tax could see limited gains.

Impact on the auto industry

Auto industry groups have welcomed the change, arguing it could help stimulate demand, particularly as consumers grow cautious about taking on large loans.

Dealers say the deduction could make financing more attractive compared with paying cash, especially if interest rates remain elevated. Some economists believe the measure could modestly boost vehicle sales, though they do not expect it to dramatically alter market conditions.

Never pay the retail price again (seriously, never)

• Check price history before you buy. Use CamelCamelCamel or Keepa to see if the deal is legit or just a marked-up fake discount.

• Stack discounts in the right order. Activate cashback, apply the best promo code you can find, then pay with a rewards credit card.

• Slow down and test the cart trick. Leave items in your cart and wait 2448 hours many retailers will email a 1015% coupon to close the sale.

Online shopping is definitely convenient, but if youre not careful, its also very easy to overpay.

Retailers smartly use things like countdown timers, auto-applied coupons that arent actually the best deal, and only threeleft! warnings to push you into a quick purchase.

But the good news is that once you understand how the system works, you can flip it in your favor.

Heres your practical online shopping playbook to save at practically any retailer.

Step 1: Start with a price history check

Before you even think about looking for a coupon code to bring your total price down, ask yourself one simple question first:

Is this actually a good price?

For Amazon purchases, the best way to figure out what kind of a deal you're getting is to use one of these tools:

• Ask Rufus, Amazons AI tool for the price history
• CamelCamelCamel
• Keepa

These tools show the price history of any product Amazon sells, making it easy to see if the deal is real or just a temporary markup followed by a fake discount.

For other retailers, not named Amazon, Google search the following to see if the price is a deal or not:

Product name + price history

Or you can also check if the brand sells direct to shoppers. Often time brands will discount their own products more aggressively than online marketplaces do.

Pro tip: Heres a good rule-of-thumb, if the current price is within 5%10% of the lowest historical price, its usually safe to buy and a solid deal.

Step 2: Run the coupon stack (in the right order)

Never assume the promo code on the retailers homepage is the best one available.

Before you checkout, do the following:

• Check the retailers promo page as they often hide the best promo codes.
• Then Google: Store name + promo code + February 2026
• Then install one of these browser extensions that will automatically find coupon codes for you while you shop:
  1. Rakuten
  2. Capital One Shopping
  3. Honey

Then once you have a browser extension installed, you can start stacking the discounts.

Heres the savings stack that I always aim for:

• Sitewide promo code
• Email signup discount
• Cashback portal
• Credit card rewards

Even if you only shave off 8%12%, that compounds across a year of online purchases and it turns into significant money.

Step 3: Always activate cashback first

If youre not familiar with online cashback portals, they exist to offer you cashback when shopping at individual websites like Macys, Best Buy, IKEA, and Walmart.

Some of the bigger players include the following companies:

• Rakuten
• TopCashback
• BeFrugal
• RetailMeNot

You simply sign-up and start your online shopping on one of these cashback sites, and you can expect these types of returns:

• 1%7% on everyday purchases.
• 8%15% during promo events.
• Higher bonuses around Black Friday, back-to-school, and holiday sales.

I realize it doesnt sound like much, but if you spend about $500 a month shopping online, getting 5% back is $300 you werent getting before.

Step 4: Use the abandon cart trick (yes, it still works)

This is by far my most passive aggressive way to save money when shopping online, and yes, it still works in 2026.

You simply add items to your online cart, then leave without finalizing your purchase.

This will automatically trigger many online retailers to email you one of the following:

• 10%15% come back codes
• Free shipping offers
• Limited-time discounts

Of course it doesnt work everywhere, but it works often enough to make it worth trying, especially on significant purchases like electronics, laptops, and expensive clothing.

Step 5: Compare shipping thresholds vs filler items

Free shipping thresholds like spend $50, get free shipping are specifically designed to get you to spend more.

Heres the classic example:

• Your cart: $42
• Free shipping at: $50
• Shipping cost: $6.99

So, if you spend the $8 more, and buy a filler item you dont need, youve essentially spent $8 to save $6.99.

Heres a good rule-of-thumb, only add a filler item in these scenarios:

• Its something you were already going to buy.
• It costs less than the actual shipping fee.
• It wont cause you to overspend later.

I know it hurts, but sometimes the smartest move is to just pay the dang shipping fee.

Step 6: Time your purchases strategically

Online deals and sales events follow some very predictable patterns every year.

By knowing when stuff tends to get cheaper, you can time your purchases and maximize your savings when shopping online.

Here are the general timing trends you should consider:

• January: Fitness, organization, bedding
• February:TVs (Super Bowl), winter clearance apparel
• March:Craft & art supply, jeans, family apparel
• May: Major appliances
• July & October: Major online sales events like Prime Day
• September:Patio furniture, grills/BBQs, summer clothing
• Late November: Black Friday / Cyber Monday

Heres the real takeaway from this: If its not an urgent need, waiting a couple weeks to 30 days can make a real difference and easily save you 20-50%.

Step 7: Dont fall for the fake urgency

Online stores absolutely love to use tricks to make you think youre about to miss out on your only chance to save money.

Here are the tricks to we tend to always see:

• Countdown timers
• Only two left
• 30 people are viewing this
• Deal expires in 05:00

Im here to tell you that these are all ploys to create fake urgency in your brain which always transfers down to your wallet.

Dont believe me? The next time you see wording like Only twoleft, do your own experiment and come back the next day and see what the site says. Often it will be reset to Only 10 left, or the wording will be completely gone.

Pro tip: If the dealhappens to disappear, just check a competing website for the same product and youll often find it even cheaper.

Always remember that scarcity isjust a marketing tool never a smart shoppers reality.

A new study shows more Americans are opting out even as flu cases surge

• Flu vaccination rates among U.S. adults have fallen 24% since 2020, putting this season on track for a seven-year low.

• Many Americans say they skip the shot not out of fear, but because they dont think they need it or cant find the time.

• Health experts say even when its not a perfect match, the flu vaccine significantly reduces the risk of severe illness and hospitalization.

Flu cases are climbing again, hospitalizations are up, and whats typically considered flu season seems to be stretching longer than usual. But while the virus is making a comeback, the flu shot isnt.

New research from Tebra suggests that flu vaccination rates among U.S. adults have dropped 24% since 2020 and this season is on track to hit a seven-year low. The study analyzed CDC FluVaxView data going back to 2018 and surveyed more than 1,000 Americans about their vaccine habits and attitudes.

The results paint a complicated picture: more than half of adults have received two or fewer flu shots over the past five years, and one in three havent gotten a single shot during that time.

So whats going on? Is it lingering vaccine fatigue from the pandemic? Concerns about safety? Or just the hassle of fitting one more appointment into a packed schedule?

ConsumerAffairs spoke with Kevin Marasco, Chief Growth Officer at Tebra, who broke down whats driving the drop and whether there are signs that Americans might start rolling up their sleeves again.

Fewer flu shots

Tebras research found that the overall rate of flu vaccines across the country have dropped 24% over the last six years. Marasco explained that there are several factors influencing consumers decision to get or not get the flu shot.

The 24% drop in flu vaccination reflects a combination of pandemic fatigue, shifting risk perception, and the politicization of public health, he said. For instance, during the COVID pandemic, awareness around infectious disease was at its peak, and viruses were top of mind for most people.

Were also seeing more young people believe theyre low-risk, so theres even less motivation to get vaccinated. Our survey also found that more than four in 10 Americans skip the flu shot because they dont think they need it, or didnt make the time to get one.

What are the barriers?

Marasco believes that the biggest barriers to getting the flu shot arent fear theyre tension and complacency.

Many people say they dont think they need it or simply didnt find the time. Inconvenient scheduling, underestimating flu severity, and assuming if youre in good health, youre low risk are key factors. Whats interesting is we found a majority of Americans say the flu shot is safe and effective, so its less about distrust and more about perceived necessity.

Marasco also explained that while social media definitely plays a role, its often overstated.

Based on our research, only 14% of Americans cite social media as their top source of vaccine information, compared to 64% who rely on their doctor, he said. With that being said, social media does push emotional narratives and misinformation at scale. While its not a primary source, it does shape perception, especially among younger generations; it reinforces doubts or normalizes vaccine avoidance and skepticism.

Risk reduction

For those who may be skeptical or opposed to a flu shot, Marasco offers a different perspective.

If someone is opposed to the flu shot, try encouraging them to focus on credible information and speak directly with a health care provider instead of relying on secondhand narratives, he suggested.

The flu vaccine isnt about perfection; its about risk reduction. Even in years where its not a perfect match, it significantly lowers the risk of severe illness, hospitalization, and complications. Its a small step that protects not just you, but the vulnerable people around you.

Nova Bus, Volvo, and Daimler Trucks are part of this week's recall