But why does that matter? Under the Big Beautiful Bill, you may be eligible for a tax deduction of up to $10,000 a year on loan interest if you buy a new American-made vehicle with financing. Among the requirements are that the vehicle's final assembly must be in the United States and that it should primarily be bought for personal use. Also of note is that this tax deduction is scheduled to expire after 2028.
Perhaps unsurprisingly, Consumer Reports' list — which includes everything from small cars and EVs to luxury SUVs and full-size pickups — is dominated by non-American brands, with just Ford and Tesla making the cut as American entrants. Here's a closer look.
Best small and midsize cars of 2026
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CR gave the "best small car" title to the hybrid Honda Civic hatchback, with the Toyota Camry earning the organization's praise as the best midsize car made in the U.S. But why the Civic hatchback and not the sedan? Although the Civic hatchbacks (regardless of the powertrain) roll out of the Greensburg, Indiana, facility, the sedans are built in Alliston, Ontario. The situation, however, is pretty straightforward with the latest Toyota Camry, which is built in Georgetown, Kentucky.
According to CR, the Honda Civic hybrid is the "best version" of the car, with its 2.0-liter powertrain delivering a respectable 200 horsepower and strong efficiency numbers (44 mpg combined), all while being relatively entertaining to drive.
As for the Toyota Camry, CR seemed particularly impressed by its ride comfort, practicality, and the hybrid powertrain's overall efficiency (48 mpg combined). Available AWD and the generous use of physical buttons also garnered praise, as did the midsize Toyota's reliability score. Unsurprisingly, KBB and Edmunds also consider the 2026 Camry to be the best in the midsize sedan space.
Best subcompact, compact, and midsize SUVs of 2026
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Subaru sweeps CR's subcompact and compact SUV titles while Toyota bags yet another accolade for the best midsize SUV built in the U.S. Although the subcompact Crosstrek is a CR favorite, especially for its efficient hybrid powertrain, handling, and ride quality, it's the non-hybrid that takes the spotlight in this list. That's because the hybrid Crosstrek is a direct import from Japan, while the non-hybrid version is built in Lafayette, Indiana.
Another Subaru SUV that rolls out from the same facility is the compact Forester. Unlike the Crosstrek, however, both the Forester hybrid and non-hybrid are built there, with CR calling it a desirable pick in the compact SUV space, regardless of the powertrain choice. Visibility, comfort, and interior space are all notable positives, as is the reliability. The hybrid's additional efficiency gains over the gas-only model also add to the SUV's overall desirability.
It's the Toyota Grand Highlander, made in Princeton, Indiana, that the organization reckons is the best midsize offering. In CR's words, the Grand Highlander is "a near-perfect people mover." Not only was its spacious interior lauded, but the SUV's 245-horsepower hybrid powertrain — delivering efficiency numbers that rival compact SUV hybrids — also helped the roomy three-row top the midsize hierarchy.
Best midsize and full-size pickup trucks of 2026
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While the Maverick did make it to CR's list previously as the best small/compact pickup, it's made in Mexico, which is the case with the midsize Toyota Tacoma as well. So, among the "American-made" pickups, the Honda Ridgeline, built in Lincoln, Alabama, takes the midsize category. Marking the entry of the first American brand on the list is Ford's F-150, taking home CR's title as the best full-size truck made in the U.S.
Unlike the body-on-frame Ranger, which is Car and Driver's top pick among midsize pickups, the Ridgeline, according to CR, offers very Pilot-like driving characteristics, with refined handling and ride quality being notable highlights. Its smooth V6 earned praise, as did the trick tailgate.
Built in Dearborn, Michigan, and Claycomo, Missouri, the Ford F-150 is the top dog in the full-size pickup space, earning CR's praise for the multitude of powertrain options on offer, ranging from V8s to hybrids. In addition to that, the F-150's roomy cabin and simple interior controls were also standouts, as were the technological leaps the latest F-150s have seen, with the introduction of features like blind-spot monitoring and BlueCruise — Ford's hands-free driver assistance system.
Best EV and luxury compact/midsize SUVs of 2026
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In the luxury landscape, CR considers the best "American-made" compact and midsize SUVs to be BMW models: the X3 and X5. Both SUVs are built in Spartanburg, South Carolina, with the X3's nimble handling, efficient powertrains, and standard AWD all earning it favor with the CR team. Car and Driver also finds the X3's overall driving experience to be balanced and ranks it fairly high among luxury compact SUVs.
As for the X5, CR mentions the SUV's plush interior and supportive seats as perfect for long-distance trips. It also found the luxury Beemer's driving experience quite fun and fitting of the German brand's reputation. What's more, the PHEV's 39-mile electric-only range is also quite impressive for an SUV of its size. While Car and Driver ranks the X5 third among luxury midsize SUVs, it's worth noting that the first two spots are taken up by the Genesis GV80 and Porsche Cayenne, both of which are made outside the U.S.
Rounding out CR's "Best Cars Made In The USA" list is the refreshed 2026 Tesla Model Y. Built in Austin, Texas, this "midsize SUV" (at least that's how Tesla sees it) happens to be CR's best pick in the electric vehicle category. Notable highs of the latest Model Y include its compliant ride and upgraded interior. CR also noted the Model Y's reliability and performance, highlighting its practicality, driving range, and access to the Supercharger network as factors that made it the best-selling EV in the U.S. market. %!s()
