Buying a car in Hawai‘i just got a whole lot better. With the new Big Beautiful Bill vehicle tax incentive, drivers in Kailua-Kona and Hilo can save up to $10,000 on their taxes when they finance a new vehicle. Whether you’re cruising along Queen Ka‘ahumanu Highway or heading up to Volcano, this new incentive makes owning a new ride more affordable — especially when you buy a Subaru or Hyundai built right here in the USA.

At Big Island Motors, we’re here to help you make the most of this new benefit and get you into a car that fits your lifestyle and your budget. With gas prices and the cost of living always top of mind for local families, saving money at tax time means more room for what matters — whether that’s a weekend beach trip or a little extra for groceries.

Let’s break it down simple-style. This new federal tax law — known locally as the Big Beautiful Bill — lets you deduct up to $10,000 in interest on your new car loan when filing your federal income taxes.

Here’s the scoop:

• You must buy (not lease) a brand-new vehicle after January 1, 2025
• The vehicle must be assembled in the U.S.A.
• Your income must be below $100,000 (single) or $200,000 (joint)
• The deduction reduces as you earn more, and phases out fully at $150,000 (single) or $250,000 (joint)
• It’s expected to expire in 2028

So if you’re thinking about getting a new Hyundai Tucson or Subaru Outback from Big Island Motors, and you finance it with a car loan, this law could put serious money back in your pocket.

Not every car qualifies for this tax incentive — but we’ve got you covered.

At Big Island Motors, we specialize in Subaru and Hyundai, both of which have popular models assembled in the United States. That means you’re not just buying a car that fits your lifestyle — you’re buying one that checks the boxes for this vehicle tax credit.

Whether you live in Kealakekua, commute from Pāhoa, or need something safe for the family in Waiākea, we’ve got a lineup of new cars that work for local life:

• Hyundai Santa Fe – Built for weekend surf trips and grocery runs alike
• Subaru Forester – Great for exploring the Saddle Road or heading to Hāpuna Beach
• Hyundai Kona – Yes, it shares the name with the town — and it’s perfect for island driving

We’ll walk you through which models meet the U.S.-assembly rule, and our finance team can help you structure your car loan to qualify for the most savings.

We get it — taxes can be confusing. That’s why our team makes it easy.

Our finance team helps you understand how the vehicle tax credit applies to your specific purchase. If your income qualifies and you finance a new, U.S.-built Subaru or Hyundai, you could save thousands over the life of the loan — and potentially reduce your tax bill next April.

Use our online payment calculator to see how much car you can afford today — and how your interest savings could stack up tomorrow.

Need help getting started? Give us a call or stop by our dealership in Hilo or Kona. We’re right off Kanoelehua Avenue and easy to find from Hwy 11.

Big Island Motors has proudly served the people of Hilo, Kailua-Kona, and surrounding communities for years. We understand that island life requires dependable vehicles, straightforward service, and pricing that respects your budget.

As your local Hyundai and Subaru dealership, we carry a wide range of U.S.-assembled vehicles that may qualify for the Big Beautiful Bill vehicle tax incentive. From car loans to trade-ins to tax-related questions, we’re here to help.

Come talk story with our team or check out our lineup at bigislandmotors.com. We’ll help you find the right car — and make sure you get the tax savings you deserve.

If you’re thinking about buying a new car in 2025 or beyond, make sure you’re taking full advantage of the Big Beautiful Bill vehicle tax credit. Start planning now by using our payment calculator to explore your loan options.

Want to speak with someone? Call our friendly team or stop by — we’re here to help every step of the way.

The Big Beautiful Bill is a new federal law that allows car buyers to deduct up to $10,000 in interest on their new vehicle loan when they file their federal taxes. It applies to new vehicles purchased after January 1, 2025, as long as the vehicle is assembled in the U.S. and the buyer meets income requirements.

No. To qualify, the vehicle must be assembled in the United States, and you must purchase (not lease) it after January 1, 2025. At Big Island Motors, we carry Hyundai and Subaru models that meet the requirement — our team can help you choose the right one.

No, leased vehicles do not qualify for this incentive. The tax deduction only applies to purchased vehicles financed with a loan.

To qualify fully, your income must be:

• Under $100,000 if filing single
• Under $200,000 if filing jointly

The deduction phases out between $100,000–$150,000 for single filers and $200,000–$250,000 for joint filers. If you’re above those amounts, you may only receive a partial deduction or none at all.

The Big Beautiful Bill tax credit is expected to expire in 2028. That gives buyers a few years to take advantage — but don’t wait too long. Some qualifying vehicles may sell out due to high demand.

Our team at Big Island Motors can verify that for you. We’ll walk you through which Hyundai and Subaru models are built in U.S. plants and eligible for the tax deduction.

Yes — trading in your old vehicle doesn’t affect your eligibility for the tax incentive, as long as you finance the purchase of a qualifying new vehicle and meet the income requirements.

You can use our online payment calculator to get a quick estimate. It’s a great way to see what your payments might look like — and how the interest deduction could save you money at tax time.