When getting a car loan in Hawaii, having a credit score of 660 or above will help you get a better rate. Aim for a low-interest rate for a loan term of 60 months or less.

Getting a car loan can be a laborious process, but the car insurance app, Jerry, can help guide you with some tips to get the best loan.

We’ll go through how to get a loan, what to look for when comparing lenders, and what impact your credit score will have on getting a car loan in Hawaii.

How to get a car loan in Hawaii

Paying in cash is definitely the most straightforward way to purchase a new car, but this is not an option for everyone. Getting a car loan from a bank, credit union, or dealership allows you to get the car and pay back the lender over the timeframe that you agree upon.

Here’s what getting a loan in Hawaii would look like:

Usually a down payment of 10% or more of the total value of the car is required.
Negotiate with the lender and agree upon an interest rate and loan term.
The loan principal (the total amount to be paid back) will be paid off in installments over the loan term.
Your loan’s monthly interest will be calculated by your annual percentage rate (APR).

The amount that you will get approved for depends on a few factors—primarily the type of car you are purchasing**, the loan term, and your credit score. In the table below, you can get a better idea of your potential APR and monthly payments for a car loan in Hawaii.

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
ACURA	8.42	$361
ALFA ROMEO	8.49	$362
ASTON MARTIN	8.49	$362
AUDI	8.62	$363
BENTLEY	8.49	$362
BMW	9.13	$367
BUICK	8.52	$362
CADILLAC	8.82	$364
CHEVROLET	8.52	$362
CHRYSLER	8.85	$365
DODGE	8.66	$363
FERRARI	8.49	$362
FIAT	8.56	$362
FORD	8.52	$362
GENESIS	8.49	$362
GMC	8.46	$362
HONDA	8.29	$360
HYUNDAI	8.52	$362
INFINITI	8.66	$363
JEEP	8.29	$360
Jaguar	8.49	$362
KIA	8.75	$364
LAMBORGHINI	8.49	$362
LEXUS	8.46	$362
LINCOLN	8.62	$363
LOTUS	8.49	$362
Land Rover	8.49	$362
MERCEDES-BENZ	8.49	$362
MINI	8.49	$362
MITSUBISHI	8.65	$363
Maserati	8.49	$362
Mazda	8.49	$362
NISSAN	8.59	$363
POLESTAR	8.49	$362
PORSCHE	8.65	$363
RAM	8.52	$362
ROLLS-ROYCE	8.49	$362
Subaru	8.49	$362
TESLA	8.98	$366
TOYOTA	8.29	$360
VOLKSWAGEN	8.52	$362
VOLVO	8.33	$360

If you’re ready to find a car loan in Hawaii, you can get started with the following steps.

Check your credit

To get an idea of what kind of loan interest you can get, you’ll need to check your credit. Having a score of 660 or higher will help you get a good interest rate. While the average National interest rate is around 5%, you may be offered interest rates at 3% or lower if your credit score is above average (700 and above).

Get an estimate of your average interest rate and monthly payment based on your credit rating using the table below.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.53	$699
36	8.75	$471
48	8.22	$364
60	8.14	$301
72	8.46	$262

Compare lenders

Take your time to compare different lenders instead of taking the first offer you get. Getting a loan from a good lender can make a big difference in what you pay and the service you get.

Approach at least three lenders before you decide where you get your loan. Getting a good rate is important, but you will also need to consider which lender will most likely approve your loan. The level of customer service the lender provides is also important since you will be dealing with them for your loan term.

Choose your loan term

Negotiating your loan term to fit your budget is essential. This is the period in which you will be paying regular installments towards your loan balance. The average car loan term in Hawaii has a range of 60 to 72 months.

A longer loan term will allow you to make smaller payments, but you end up paying more interest over the years, pushing up the total cost of your car purchase. It’s more advantageous to get the shortest loan term that is within budget, ideally a loan term of 60 months or less.

Below is a table showing how the loan term in Hawaii can affect your APR and monthly payment.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	16.78	$415
Good	8.42	$361
Very Good	5.11	$341
Excellent	3.89	$333

MORE: Should you get a 72-month car loan?

Get preapproved

Before you start shopping for a car, try to get preapproved for a car loan. Once you know how much you’ve been approved for, you’ll have a better idea of what prices to bargain for. You’ll have more buying power and you’ll be more confident in negotiating for the best price for your car.

Can you get a car loan in Hawaii for a used car?

In short, yes, you can finance a used-car purchase in Hawaii with a car loan. However, you may want to keep the following in mind:

Getting a loan for a used car usually will come with higher interest rates, as high as 8%.
The lender may reject your loan if the car you’re buying is too old.
Most lenders will only approve a loan that meets their minimum loan requirement. If you only need a small loan, you might want to consider a loan from a credit union instead.

The age of the car you purchase will likely affect your car loan in Hawaii, as seen below:

Car Make

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.72	$305
2020	8.12	$309
2019	8.26	$309
2018	8.09	$307
2017	8.29	$309
2016	8.43	$310
2015	8.62	$311
2014	8.59	$380
2013	8.67	$381
2012	9.64	$512
2011	9.64	$512
2010	9.64	$512

MORE: How to determine the retail value of your used car

Hawaii car loan calculator

Once you’re comfortable with how to get a car loan, what loan term you should get, and the car you want, you can tally it all up. Using Jerry’s car loan calculator can give you an idea of what the payment to your car loan in Hawaii would look like. This will be based on the interest rates you can be approved for according to your credit score, the loan amount, the loan term, and the car model.

Keep in mind that the calculated values will only be averages since you can usually further negotiate the amount, including any additional fees or potential penalties. Each loan will be slightly different depending on the terms that are agreed upon. The goal of this tool is to help you get an idea of what amount to expect so you can better negotiate your loan.

Car Make

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.55	$362

MORE: How to calculate total interest paid on a car loan

How to find affordable car insurance in Hawaii

Getting your car loan approved is just the start. You will need car insurance that meets Hawaii’s minimum legal requirements, but we recommend additional coverage to keep your car protected. Many people dread insurance shopping because of the tedious forms, but the Jerry app can make it quick.

Just by downloading the app and answering a few questions, Jerry will help you find competitive quotes from** over 50 top insurance providers**. You won’t have to wait long since it takes less than 45 seconds and you can pick a policy right from the app.

Jerry will handle all the paperwork and help cancel your old policy. Not only do you save time, but Jerry also helps its users save an average of $887 every year on car insurance.

“I signed up for a new policy with Jerry’s help. I ended up saving $236 a month after my switch. Thank you, Jerry!” —Adelaide C.

FAQs

What credit score is needed to buy a car in Hawaii?

A credit score of 660 or above should qualify you for a car loan in Hawaii. However, under special circumstances, lenders would also be willing to approve a loan even if your credit score is lower than the requirement.

Will a bank give me a loan for a used car?

Some banks will give you a loan for a used car, depending on their minimum loan amount. However, if you only need a small loan, try approaching a credit union instead.