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The Impact of Tax-Deductible Interest on Dealership Finance Departments

By: Cory Collins
Published on: January 2, 2025

Tax-deductible interest has always been a key part of dealership finance, but its true potential is often overlooked. In this article, Cory Collins explores how F&I managers can reframe this benefit to customers as a strategic tool rather than just a line item on a contract. By clearly showing buyers how deductibility lowers their overall cost of borrowing, dealerships can create a stronger case for financing in-house. Collins argues that positioning this advantage not only boosts customer confidence but also directly impacts profitability in the finance department. This shift is especially timely as shrinking front-end margins force dealerships to maximize every opportunity on the back end. For F&I professionals, mastering this concept can transform tax-deductible interest into a real competitive edge.


Read Cory's full ARC Nation article here ›

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