What Does the One Big Beautiful Bill Mean for Auto Finance Companies?

This commentary reviews how the Trump Administration's One Big Beautiful Bill Act may affect the auto finance sector.

Key highlights include:
-- On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (the Act), a tax cutting and spending bill that provides the foundation for his administration's domestic policy.
-- The Act includes several provisions that have the potential to affect the auto finance sector, including tax deductions related to interest payments on new vehicle loans and the ending of electric vehicle tax credits that were enacted during the Biden administration.

"Going forward, with the passage and signing of the Act into law, we see no near-term impact on the credit profiles of the auto finance companies that we cover." said Mark Nolan, CFA, Vice President - North American Financial Institution Ratings.