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Affordable American-built cars — that come with a tax break too

Red, white and blue savings and a possible tax deduction to sweeten the deals
Pittsburgh International Auto Show
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Car dealers are rolling out summer savings and patriotic deals this Independence Day weekend, and American-made vehicles may come with added financial benefits, including a new tax break.

At Jeff Wyler Honda in Cincinnati, customer Greg Hall was looking to buy a second Honda vehicle.

"We like the fact they are made in the United States, they are affordable, and what we like is they are cheap to own," Hall said.

Sales manager Bryan Best said many popular Honda models — including the Civic, Accord and Odyssey — are built in Ohio, Indiana or Alabama.

"A lot of the Hondas are built right here in the USA, even though it is a Japanese automaker," Best said. "We produce almost a million cars a year here in the U.S."

In addition, several Honda models still cost less than $30,000.

"The Civic comes in less than the price of the average used car," Best said.

The 2026 Honda Civic starts at $24,695, according to Cars.com.

In April, car dealers listed the average used car for $26,342.

There is also a new tax break allowing some taxpayers to deduct up to $10,000 a year in auto loan interest for qualifying new vehicles assembled in the U.S.

Watch as we check out some affordable cars that are built in the U.S.:

Affordable cars that are built in America

How to know if a car counts as 'American-made'

To help shoppers determine what qualifies, Cars.com releases its yearly American-Made Index. The index takes into account:

  • Location of final assembly
  • Percentage of U.S. and Canadian parts
  • Countries of origin for all available engines
  • Countries of origin for all available transmissions
  • U.S. manufacturing workforce

Lead researcher Patrick Masterson said no vehicle is completely American made.

"If your vehicle is coming off the line with 70% domestic parts content, that's really high," Masterson said. "But also, there are vehicles that have pretty low domestic parts-content percentages, but are still finished here. So they qualify."

Cars.com studied nearly 400 vehicles from the 2026 model year to identify 86 vehicles that qualify for its American-Made Index.

The top five most American-made vehicles:

  • Tesla Model 3
  • Tesla Model Y
  • Jeep Gladiator
  • Jeep Grand Cherokee
  • Honda Ridgeline

The most affordable American-made vehicles:

  • Toyota Corolla LE
  • Honda Civic LX
  • Toyota Corolla Cross L
  • Subaru Crosstrek Base
  • Nissan Altima SV

You can see the full list here.

Don't rush your purchase

If you're shopping this Fourth of July weekend, Masterson said there's no need to hurry. In past years, deals continue throughout the month.

"You might see those deals start July 1st and run through the end of July," Masterson said. "It really depends on the automaker."

For some buyers, the Independence Day savings may be enough to seal the deal, so you don’t waste your money.

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