It depends-if the original loan was taken out after December 31, 2024, then yes, you can deduct the interest if your car qualifies. The car must have been purchased in 2025, and the refinance must not be for any "cash-out".
According to What is the vehicle loan interest deduction?, here are the rules:
- "It was purchased, not leased, in 2025.
- It’s a brand new vehicle. In other words, you didn’t buy it used.
- Its final assembly was in the U.S.
- You can check this by entering your VIN and model year into the VIN decoder provided by the National Highway Traffic Safety Administration. You’ll also include the VIN on your tax return.
- It's a car, van, SUV, motorcycle, or pickup truck that weighs less than 14,000 pounds.
- You bought it for personal use.
- You didn’t pay the interest to a family member or a business you own. The loan must be secured by the vehicle."
