Why It Costs So Much To Own A Car In Hawaii (2024)

FAQs

Why It Costs So Much To Own A Car In Hawaii? ›

High gas prices and registration fees make it expensive to own a car in Hawaii and that makes it even harder to afford to live here.

The Cost of Buying a Car in Hawaii

Hawaii is known for its high car prices due to several reasons, including high taxes, shipping costs, and the limited supply of new and used cars. The average cost of buying a car in Hawaii is significantly higher than in other states, and luxury vehicles can be especially expensive.

The cost of owning a car goes far beyond the price of the car. It also includes interest payments on the loan you take out for the car, gas costs, insurance costs, legal document fees, maintenance costs, and repair costs.

It's because Hawaii is one of 13 states that collects an annual vehicle registration tax based on weight.

In part due to interest rates: Premiums rise when borrowing costs go up. In part because cars just cost so much right now: Pricey vehicles are pricey to replace in the event of a crash. In part thanks to climate change, which floods and burns people's garages along with their homes.

According to a 2021 study by the Ulupono Initiative, the cost of owning a vehicle in Hawaii is $8,100 annually, or $675 per month, when factoring in the various costs, including gas, maintenance and insurance.

Yes, Hawaii is known for its high cost of living due to factors such as housing, groceries, utilities, and transportation. What salary do you need to survive in Hawaii? To survive in Hawaii, a single person may need a salary of around $50,000 to $60,000, while a family may require $80,000 to $100,000.

Advanced automotive technologies, supply chain disruptions, and a skilled labor shortage are making every trip to the mechanic more expensive than ever before. For many drivers, the shock at the mechanic's final bill has become as expected as the oil change itself.

Short supply of new cars. People bought fewer new cars in the preceding years so supply is down. Demand then went up as car waiting lists stretched out to over a year in many cases. In 2022 you could sell a used car for more than it cost new.

Is it cheaper to not own a car? It can be cheaper, but this depends on the type of car you're looking at buying and how much you could pay for various car expenses. With car ownership comes money spent on car insurance, maintenance, gas, parking and a monthly payment if you have a car loan.

How much are plates in Hawaii? ›

The average car insurance rate in Hawaii is $152 per month or $1,819 per year for full coverage. For minimum liability coverage, drivers in the Aloha State pay an average of $52 per month or $625 per year.

In Hawaii, the license plates have a unique letter designation based on the island counties that residents purchased or registered the vehicles from; a vehicle with a registration number beginning with H or Z is registered in Hawai'i County, one beginning with K is registered in Kaua'i County, one beginning with M or L ...

When you take into account loan interest, depreciation, fuel, insurance, maintenance and fees, the cost of owning a car makes a big leap. For new vehicles driven 15,000 miles a year, average car ownership costs were $12,182 a year, or $1,015 a month, in 2023, according to AAA.

Car Prices Will Likely Continue To Decrease

“Last month, the average price for a new vehicle was [$47,936] — a [1.4%] dip from last year, according to the latest KBB data. This suggests that new car prices might drop in 2024.” One factor that could lead to price drops is an oversupply of new cars.

On the list of the top 20 selling cars, Toyota Tacoma was No. 1, capturing 7.3% percent of the state market.

Although Honolulu gets hit the most with car break-ins, these types of crimes take place all over the island and at any time of day. Other helpful tips to avoid getting your car stolen are: Never leaving the key in the ignition to your vehicle.

Key takeaways. The average monthly cost of car insurance in Hawaii is $133 for full coverage and $32 for minimum insurance. Average rates for full coverage in Hawaii are 31 percent less than the national average.

One of the reasons people leave their cars abandoned in Hawaii is that they figure it is too difficult to ship them to the mainland and nothing could be further from the truth. Car shipping is actually an easy process that will help make the rest of your move even easier.