Can you deduct a car loan’s interest?

We’re expanding my tow truck business and adding a new truck. Is it possible to deduct the interest on the loan?

Answer
Expanding a business is a big deal—congratulations! As for your loan, the good news continues. You can deduct car loan interest when filing your taxes.
Of course, all vehicles do not qualify. Only vehicles driven for business purposes do, which is why your new tow truck would be eligible. I’m guessing it’s unlikely you’d use that much for personal purposes!
What’s even better, there are more ways to save on car expenses. It’s this simple: download the Jerry app or go to getjerry.com. In less than 45 seconds, Jerry collects all of your information from your existing insurer.
Choose from competitive quotes from 50+ top insurance companies and Jerry takes care of the rest—securing your new policy and helping you cancel your old one. The average Jerry user saves $879 a year on car insurance.
Will Baldwin
Answered on Dec 02, 2021
Will Baldwin is a graduate of Ryerson’s School of Journalism with three years of experience writing and freelancing for multiple publications including The Globe and Mail. With a deep interest in geography, economics, and politics, he has come to be extremely interested in the relationship of personal finances and culture with the auto industry as one of the forefronts of his interest. When not writing, he’s an avid sports fan who splits his time between watching too much basketball and having his heartbroken by the New Orleans Saints. Will is based in Toronto, Ontario.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free