Auto Loan Basics: What to Know About Auto Financing

Photo of two people handing over car keys.

If you’re in the market for a new car, you may worry about finding the ideal vehicle that has everything you need – whether it be top safety features, the latest technology, or more passenger room – at the right price. When it comes to applying for an auto loan, the same can be said, as people often research to find auto financing options with the best rates and terms available.

Before you start shopping for a new car, it’s a good idea to familiarize yourself with the basics of an auto loan. There are a number of things to consider:

New or Used Vehicle
Lenders often offer different auto loans for new vehicles and used vehicles. The auto loan terms and annual percentage rate may vary depending on whether you are financing a new or used car.

Loan Amount
How much will you need to borrow? This amount could change depending on the price of the vehicle, any down payment you make, or vehicle trade-in you may be able to offer.

Loan Term
A longer auto loan term, for example, five years versus three years – may mean lower monthly payments, however you’ll likely end up paying more in interest over the life of your loan.

At Hawaii State FCU, we’ll work with you so you can drive home with the perfect vehicle and payments you can afford. We offer car loans with up to 100% financing, flexible terms and a fixed annual percentage rate1. Plus, we won’t penalize you for pre-payment. We can help take the hassle out of financing your new or used vehicle so you can navigate the roads with confidence.

Looking for a stress-free car purchasing experience? Hawaii State FCU is also part of the Credit Union Direct Lending (CUDL) program – we work with a number of local dealerships to offer affordable credit union financing for new and used vehicles. To find a participating dealership, visit and start your CUDL search and discover the many ways to qualify for free membership at Hawaii State FCU.

Interested in learning more about Hawaii State FCU auto loans? Schedule an appointment online to speak with one of our financial representatives or call us at (808) 587-2700 (Oahu) or US Toll-Free at (888) 586-1056.


1. Payment Example: A loan of $10,000 with a 6.00% APR will have: 12 payments of $861 for a one-year term; 24 payments of $443 for a two-year term; 36 payments of $304 for a three-year term; 48 payments of $235 for a four-year term; 60 payments of $193 for a five-year term; 72 payments of $165 for a six-year term; and 84 payments of $146 for a seven-year term.

Visit for auto loan rates. Published rates include a 0.25 percentage point discount for automatic payment from a Hawaii State FCU checking account. Without automatic payment, the APR will be 0.25 percentage points higher.

Hawaii residency required for new accounts.

About HSFCU Marketing

Hawaii State FCU firmly believes that financial education empowers people to make smarter decisions throughout their lives, resulting in a better financial future. We do this by providing useful financial tools such as educational blogs, online courses and free webinars on a variety of topics including planning for retirement, debt management and buying a home. For more information on these and other resources, including free financial calculators and budget-friendly recipes, visit and click on “Financial Health.”

Related Posts

Third Party Site Disclaimer

We may provide links to external websites that refer to third party services and products available to Hawaii State FCU members, for enrollment in Hawaii State FCU financial education webinars, or other purposes. Please review the terms and conditions of use carefully. We do not make any express or implied representation or warranty to you concerning the quality, safety or suitability of external websites, or their services, products, or contents. External websites are not under our control and may have different security, privacy and other. Using the links may identify you as a Hawaii State FCU member to the external website operator.  Services and products from third parties are not obligations of, nor endorsed or guaranteed by, Hawaii State FCU nor the National Credit Union Share Insurance Fund.  Alternative services and products may be obtained from other providers of your choice.

Click “ACCEPT” to enter an external website. Click “Cancel” to return to HSFCU’s website.

Please remember to log off of Online Banking and Mobile Banking before going to any external website.

Cancel Accept