Does the Ford Mustang qualify for the car loan interest deduction?
The 2025–2028 deduction turns on where a vehicle is finally assembled — not the badge. Here's where the 2025–2026 Ford Mustang is built and what it means for your loan interest.
Assembly data: NHTSA vPIC + our verified plant lists · Not tax advice · Methodology
✓
PASS — assembled in the USA
The Ford Mustang qualifies on the assembly test. Assembly is one of four gates — you also need a new vehicle, personal use, a 2025–2028 loan, and income under the phase-out.
The short answer
Ford builds the Mustang coupe and convertible at the Flat Rock Assembly Plant in Michigan, so the pony car clears the OBBBA final-assembly test. New, personal-use, and financed under the income cap, a Mustang loan's interest can be deductible. Note this is the gas Mustang, not the Mexican-built Mach-E.
Where the Ford Mustang is assembled
| Assembly plant | Location | Assembly test |
|---|---|---|
| Flat Rock Assembly Plant | Flat Rock, MI | ✓ United States |
Confirm the other three tests
A US-assembly PASS is only the first gate. Each remaining condition has its own guide:
New & personal-use — used cars and leases don't qualify→ Loan dated 2025–2028 — refinancing keeps eligibility→ Income under the phase-out — run the MAGI calculator→
Frequently asked questions
Where is the Ford Mustang assembled?
The Mustang coupe and convertible are built at Ford's Flat Rock Assembly Plant in Michigan, a US final-assembly point that meets the assembly test.
Does the Mustang Mach-E qualify too?
No. The Mach-E is a separate electric model built in Mexico, so it fails the assembly test — only the Michigan-built Mustang coupe and convertible pass.
Does the Dark Horse or GT trim change anything?
No. All Flat Rock-built Mustang trims meet the assembly test the same way. Eligibility still depends on the loan, personal use, and your income.
Advertiser disclosure
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