Section 179 Vehicle Deduction Explained (2025 Guide)

Recently, Section 179 deduction rules have changed – for the better. If this is your first time taking advantage of the Section 179 deduction, 2025 is your year! Take advantage of this tax break worth up to $2,500,000¹ by following the guidelines below. If you're a local business that wants the biggest Section 179 tax deductions, Autostar CDJRF of Waynesville can help you maximize your savings on our selection of eligible Ram ProMaster vans and HD trucks.

What Is the Section 179 Vehicle Deduction?

The Section 179 vehicle deduction applies to businesses across the U.S., not just in Waynesville, NC, and it's a valuable tool that can offset thousands of dollars in taxable income. Here's how it works:

• The Section 179 deduction was created by the U.S. government to enable businesses to deduct the full purchase price of qualifying vehicles, equipment, and software from taxable income.
• Section 179 preserves your company's cash flow and gives you your model's tax benefits right from the start.
• Section 179 limits for 2025 have doubled from last year, giving business owners a maximum deduction of $2,500,000 and raising the phase‑out threshold to $4,000,000.¹
• Section 179 deduction amounts are based on a vehicle's weight and usage. Vocational or specialized vehicles of any weight can qualify for full deductions; passenger vehicles with GVWRs between 6,000 and 14,000 pounds have a capped deduction of $31,300; and cars and light trucks under 6,000 pounds have first-year Section 179 limits of around $20,400.²
• You can use Section 179 in tandem with bonus depreciation, which was reinstated at 100% in 2025 and can be applied to the remainder of your eligible vehicle's purchase price.¹

Which CDJR Vehicles Are Eligible for a Section 179 Deduction?

Any of our CDJR vehicles that are purchased by a business for commercial use should qualify for a Section 179 deduction, which means your options are nearly limitless. Browse our Autostar CDJR inventory in Waynesville, NC, to match your company with trucks and vans that can get every job done right.

• Ram ProMaster: Explore Ram ProMaster cargo vans or crew vans for multiple heights and length options so you can build your perfect machine.
• Ram 2500: Showcasing an enhanced available diesel powertrain with extraordinary towing capabilities, our new Ram 2500 trucks are built for both work and play.
• Ram 3500: This year's Ram 3500 inventory is designed to handle the toughest jobs while providing a comfortable driving experience for your crew.
• Ram 5500 HD: This truck is the brand's highest-capacity Chassis Cab model, designed for extreme heavy-duty tasks with single or dual rear wheels.

Claim Your Section 179 Deduction in Waynesville, NC

Visit Autostar CDJRF of Waynesville today to explore our commercial inventory, apply for your Section 179 deduction, and start building the company you've always dreamed of. Still have questions about Section 179 tax deductions? Check out the FAQ below, or reach out to our dealership for assistance.

Frequently Asked Questions About Section 179 Deductions

How does Section 179 work for vehicles?

Your business can leverage Section 179 to deduct the full purchase price of qualifying vehicles in the same tax year they are put into service, meaning Section 179 is an immediate write-off that reduces taxable income. To claim your Section 179 deduction, complete Part I of IRS Form 4562 for the year the vehicle is placed into service. If you have special or complex circumstances, consult a tax professional.

Can I use Section 179 if I lease or finance a vehicle?

Yes, Section 179 applies to both leased and financed commercial vehicles as long as the vehicle meets IRS business-use and weight requirements. You'll also want to make sure the commercial vehicle is titled in your business's name and placed into service by the end of the purchase year to qualify for the Section 179 deduction (and bonus depreciation, if available).

What is the difference between Section 179 and bonus depreciation?

Section 179 enables business owners to deduct set dollar amounts from their taxes, while bonus depreciation allows a percentage deduction. Both Section 179 and bonus depreciation apply to commercial assets used for business purposes, and both remain in effect under the new 2025 legislation. Many businesses use bonus depreciation to increase their deductions once they've reached their Section 179 limits.

¹Reference to this third-party review/claim is solely for informational purposes and not to be relied upon. For more details, please visit https://www.comerica.com/insights/commercial-banking/assorted-commercial/bonus-depreciation.html#:~:text=100%25%20bonus%20depreciation%20is%20now,of%20this%20renewed%20tax%20advantage.

²Reference to this third-party review/claim is solely for informational purposes and not to be relied upon. For more details, please visit https://www.section179.org/section_179_faqs/