State rules
Hawaii auto loan rules
Hawaii has 1 Census places covered on AutoLoanable, with a combined estimated population of 341,778. Vehicle financing in Hawaii is governed by state law — the interest-rate caps, title-lending rules, sales-finance licensing and the regulator that oversees them. The sourced figures below apply to every car loan made to a borrower in the state.
The lowest rates are only available to the most qualified applicants.
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Key rules for car buyers in Hawaii
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 12% per year simple interest (consumer credit transactions by written contract) Source says: "to stipulate by written contract, for any rate of simple interest not exceeding one per cent per month or twelve per cent a year". |
Hawaii State Legislature (Hawaii Revised Statutes) as of 2026-09-17 |
| Vehicle title loan status | Hawaii has no title-loan-specific statute; a vehicle-title-secured consumer loan is subject to Hawaii's usury limits — 12% simple interest per year for lenders not regulated under HRS ch. 412, or up to a 24% annual percentage rate for licensed financial services loan companies. Source says: "For simple interest loans, a financial services loan company may charge, contract for, and receive a "finance charge" in any form or forms at an "annual percentage rate" not to exceed twenty-four per cent a year" License category: Nondepository financial services loan company license (Haw. Rev. Stat. ch. 412, art. 9). |
Hawaii State Legislature — Haw. Rev. Stat. § 412:9-302 as of 2026-09-17 |
| Sales finance / installment lender licensing | Installment lender license required (formerly payday lenders) Source says: "Act 56 (2021) is effective January 1, 2022, creating a new statutory license for installment lenders (formerly known as payday lenders)". No separate motor-vehicle sales finance act — retail installment sales (including motor vehicles) are governed by HRS ch. 476, Credit Sales (Haw. Rev. Stat. ch. 476 (see also §§ 437-32 to 437-34)). |
Hawaii Division of Financial Institutions, Department of Commerce and Consumer Affairs as of 2026-09-17 |
| State lending regulator | Hawaii Division of Financial Institutions (DFI), Department of Commerce and Consumer Affairs Source says: "DFI ensures the safety and soundness of state-chartered and state-licensed financial institutions". |
Hawaii Division of Financial Institutions, Department of Commerce and Consumer Affairs as of 2026-09-17 |
| Sales tax on vehicle purchases | No state sales tax; a 4% state general excise tax applies to retail sales, plus county surcharges of up to 0.5%. Source says: "Hawaii does not have a sales tax; instead, we have the GET, which is assessed on all business activities." |
Hawaii Department of Taxation as of 2026-09-17 |
How to use these rules
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Check the ceiling before you compare offers
If a quoted APR looks extreme, compare it against the Hawaii cap above — and note that a specific statutory exemption can apply to a particular product.
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Verify the lender is licensed
Use the regulator named in the table to confirm the lender or sales-finance company may legally serve borrowers in the state.
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Know what is secured against your car
A vehicle title loan is secured by the car itself. If the state permits it, understand the repossession terms before you sign anything.
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Budget for tax and fees separately
Sales tax and title fees are financed along with the car, so they raise the amount you borrow — and therefore the interest you pay on them.
Cities in Hawaii
We cover 1 Census places in Hawaii.