Generally, yes. However, the payment reduces your cost basis in the vehicle. This has implications if you later sell it. For example, if the car cost $40,000, and you later sell it, you would have a non-deductible loss if you receive less than $40,000 and you have a taxable capital gain if you receive more than $40,000. (As you can imagine, this situation is not common for personal vehicles.)
However, the payment would reduce your cost basis to $24,000. So if you sold the used car for more than $24,000, the difference is taxable capital gain. The payment reduces your adjusted cost.
This answer has been verified for accuracy by an Intuit expert employee
