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New Opportunities for Dealerships from Budget Bill

The Senate’s recently passed budget bill is set to bring major updates to the auto industry, and while some changes are bold, they also create real opportunities for dealerships ready to adapt. With the right strategy, what feels like disruption can be a springboard.

From evolving tax incentives to smarter customer messaging, here’s how this bill could reshape the way you sell and how Strong Automotive can help you make the most of it.

A Final Push for EV Sales

The federal EV tax credit—$7,500 for new models and $4,000 for pre-owned—is now set to expire on September 30, 2025. That gives dealers a defined window to position their electric inventory, while incentives still apply.

Why that’s a good thing:

  • A clear deadline creates urgency.
  • Marketing campaigns can spotlight “limited-time” savings.
  • Consumers on the fence may finally take the leap.

Smart, well-timed digital campaigns can highlight remaining tax credit eligibility, push test drives, and convert browsing interest into showroom traffic.

Auto Loan Interest Deductions Could Boost Buying Power

One of the most exciting pieces of the bill is the introduction of up to $10,000 in deductible auto loan interest from 2025 to 2028. This above-the-line deduction applies even to buyers who don’t itemize, and only for vehicles assembled in the U.S.

Why it matters:

  • For the same monthly cost, shoppers might be able to afford a better vehicle.
  • Local inventory with U.S. VINs becomes more attractive.
  • Dealerships can tie this perk directly into finance-focused marketing.

It’s the perfect time to refresh your VDPs, PPC campaigns, and email sequences to focus on value.

Fuel Economy Enforcement Eases Up

The bill eliminates fines for automakers that miss Corporate Average Fuel Economy (CAFE) targets. This could lead to broader model options and pricing flexibility.

What that means for you:

  • Popular, higher-output trims may become more common.
  • Automakers may adjust lineups based on buyer demand, not just MPG math.
  • Dealers should be prepared to market performance as much as efficiency.

Whether your audience is leaning green or chasing horsepower, your digital content and paid ads can flex to meet the moment.

Battery Credit Rules Tighten—But Clarity Is Coming

Tax credits for battery production are being refined to promote U.S.-based materials and suppliers. The result? A cleaner, more transparent supply chain, and clearer qualification rules for tax perks.

For dealers, this creates:

  • Simpler messaging about EV eligibility can make compliance-communication more effective.
  • Sales teams can feel more confident when selling vehicles built with U.S.-approved components.
  • This is a chance to highlight domestic innovation.

Strong Automotive can help you turn these behind-the-scenes updates into strong, consumer-facing content that builds trust and boosts conversions.

Opportunity Comes to Dealers Who Act Fast

This bill closes some doors, but opens others. It clears a path for focused, time-sensitive campaigns that speak directly to what buyers care about right now: savings, affordability, and staying informed.

With a shorter EV credit runway, a powerful new loan deduction, and clear-cut battery rules, your dealership can stand out if you have the right strategy.

John Paul Strong

John Paul Strong combines his two decades of automotive marketing experience with a team of more than 150 professionals as owner and CEO of Strong Automotive.

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