Here’s How Much an Auto Loan Will Cost Retirees for a New or Used Car in Hawaii

If you’re car shopping as a retiree in Hawaii, you may want to keep costs low. Understanding the current state of the new and used car market can help you find the best deal.

Explore More: 7 SUVs Retirees Should Consider Buying Before Christmas

Find Out: 3 Things You Must Do When Your Savings Reach $50,000

GOBankingRates recently conducted a study about the average auto loan rates in every U.S. state, including Hawaii. The study covered average costs for different types of vehicles, including SUVs, trucks, electric cars and sedans. You can use this data to help you make an informed decision when purchasing a new automobile .

Money mistakes the super wealthy never make - that you might be doing now.

National Auto Loan Averages

Before getting into the specifics of the Hawaiian market, consider the national averages for new and used cars with a 20% down payment and a five-year loan.

Read Next: 8 Best Luxury Cars for Wealthy Retirees

New Car National Averages

• Average price: $47,480
• Average amount financed: $37,984

Used Car National Averages

• Average price: $25,415
• Average amount financed: $20,332

How Much a New Auto Loan Costs in Hawaii

As a retiree in Hawaii, learning more about the costs of each vehicle type before deciding can help you find the right fit for you and your financial situation. Use the following breakdown of average auto loan rates and costs to help.

New SUV

• Average auto loan rate: 6.66%
• Average auto loan total cost: $47,164
• Average auto loan monthly cost: $746

New Truck

• Average auto loan rate: 7.22%
• Average auto loan total cost: $47,303
• Average auto loan monthly cost: $756

New Electric Vehicle

• Average auto loan rate: 2.07%
• Average auto loan total cost: $46,059
• Average auto loan monthly cost: $667

New Sedan

• Average auto loan rate: 8.04%
• Average auto loan total cost: $47,507
• Average auto loan monthly cost: $771

State Average for All New Cars

• Average auto loan rate: 6.99%
• Average auto loan total cost: $47,245
• Average auto loan monthly cost: $752

How Much a Used Auto Loan Costs in Hawaii

Used cars cost roughly half as much as new cars, but consider repair costs and fuel consumption differences when weighing value and price.

Used SUV

• Average auto loan rate: 12.45%
• Average auto loan total cost: $26,035
• Average auto loan monthly cost: $457

Used Truck

• Average auto loan rate: 12.00%
• Average auto loan total cost: $25,972
• Average auto loan monthly cost: $452

Used Electric Vehicle

• Average auto loan rate: 7.29%
• Average auto loan total cost: $25,329
• Average auto loan monthly cost: $405

Used Sedan

• Average auto loan rate: 13.80%
• Average auto loan total cost: $26,226
• Average auto loan monthly cost: $471

State Average for All Used Cars

• Average auto loan rate: 12.53%
• Average auto loan total cost: $26,047
• Average auto loan monthly cost: $458

Tips for Finding an Affordable Car

Auto sales in Hawaii aren’t keeping pace with national averages. While national auto sales rose 3.4% in the first half of 2024, new vehicle registrations in Hawaii declined by 7%.

One reason for this trend is affordability — people are reluctant to finance a new car while interest rates remain high. This is especially relevant for retirees living on a limited budget.

However, there are still ways to find an affordable car, and these tips will help you make the smartest decision for your budget.

1. Spend time researching: Think about why you need a car and which type will suit your needs best. Then consider aspects like storage requirements, gas consumption and insurance. When you know what you’re seeking, you’re a better decision-maker.
2. Don’t exceed your budget: Use an online auto loan calculator to determine how much you can afford. Knowing your budget will narrow your options at the dealership. Financial experts recommend not exceeding 7% of your gross income on monthly payments.
3. Buy a used vehicle: You can often find the best deals on used cars. However, don’t overlook a vehicle’s history, especially when priced low. You want to be aware of any potential mechanical issues or repair costs that will add to the overall cost down the road.
4. Explore financing: Banks, credit unions and dealerships may all present you with different financing options, so know what is available for your budget. Getting preapproved for a loan is a good strategy for understanding your budget and speeding up the buying process.
5. Always negotiate: You might be surprised what kind of discounts you can get from your local dealership, especially when auto sales are slow. Use available consumer reports to learn what other people are paying and start negotiating from the bottom of the price range.

Methodology: For this study, GOBankingRates analyzed each U.S. state to find the average auto loan rates. Using Edmunds’ APR Car Loan Rates from August 2024, the auto loan rates were found for SUVs, trucks, electric cars, sedans and state averages for used and new cars for each state. The average total cost for an auto loan can be calculated by using the average used car and new car price, as sourced from Kelley Blue Book, assuming a 20% down payment and using five years for the loan term. The monthly and total auto loan costs can both be calculated for all the states and car types. Using these filters, the total cost for an auto loan can be calculated for each state and with different car types. All data was collected on and is up to date as of Sept. 5, 2024.

This article originally appeared on GOBankingRates.com : Here’s How Much an Auto Loan Will Cost Retirees for a New or Used Car in Hawaii