Regulated Industries Complaints Office
235 S. Beretania Street, Ninth Floor
Honolulu, Hawaii 96813
cca.hawaii.gov/rico
Buying a New Car
Here are some things to keep in mind when shopping for a new car.
BEFORE YOU BUY:
• Decide what kind of car and what features you are looking for.
• Educate yourself about the car and its options.
• Check with your insurance company on the cost of insurance for the car you have in mind.
• Get pre-qualified for an auto loan from your lending institution so you know what you can afford.
• Comparison shop. You will not be able to get out of a contract just because you found a better
deal elsewhere after you have already signed a contract.
BEFORE YOU SIGN:
• Be sure you have an entire copy of the contract.
• Review the contract and make sure you understand all its terms.
If you do not understand any of the contract items, ASK the salesperson to explain to your
satisfaction.
• Don’t sign the contract if you do not agree to all the terms listed.
• Make sure all promises are in writing in your contract. Oral promises may not be enforceable.
• Generally, there is no 3-day cancellation period or rescission period once you sign the contract, so
be sure that you want to purchase the car.
There may be a written reference to a 3-day rescission period noted in your contract, but this
applies only to door-to-door sales and not to the average car sale transaction.
However, if you were sent a flyer offering you a free prize for going to the dealership to test drive a
car, this may be considered a door-to-door sale even if you sign the contract at the dealership.
• As purchaser of the car, you are responsible for providing the insurance. The dealer is not
obligated to cancel a contract because you cannot afford to pay for insurance.
• When you see an advertisement in the newspaper for a car, be aware there may be charges in
addition to the stated price for tax, license and documentation fees. Always read the fine print.
• You should receive a written notice from the dealership setting forth the provisions of the new car
“lemon law” when you purchase the car.
FINANCING:
• Deals may be subject to financing approval. If they are, it means you may have to consider the
dealership’s financing program as well as those offered by other financing entities.
• You have the option of obtaining financing through the dealership or from your own financial
institution.
• If you apply for financing through the dealership, you will have to sign a financing agreement. If
you do not plan to obtain financing through the dealership, you do not have to sign the dealer’s
financing agreement as a “back-up.”
• Do not sign the financing agreement until you receive an entire copy of the contract. Review it and
make sure you understand all its terms.
• The dealer may allow you to take the car off the lot even though you have not yet qualified for
financing. Be aware that you may be responsible for the vehicle when you take it off the lot.
• If the deal is subject to financing approval, and you do not qualify for financing either through the
dealership or your financial institution, the contract may be void and you may have to return the
car to the dealership.
ADDITIONAL FEES:
The car purchase contract may list other fees in addition to the price of the car, such as extended
warranties, guaranteed auto protection (GAP) fees, and vehicle theft registration (VTR) fees. These
fees are normally always optional and you may not want to purchase the services charged from those
fees.
If you do not know what the fee is or what it entails, ASK the salesperson to explain it to you. If they
tell you that a certain fee is required by law, ask them to specify what law they are referring to and
check it out.
RESOURCES
The Department of Commerce and Consumer Affairs (DCCA), and its Regulated Industries Complaints Office (RICO), offer
tools, tips, and services you can use to check out an individual or business. Information is available by calling (808) 587-
4272 or online at cca.hawaii.gov/businesscheck.
For information about filing a complaint or to report unlicensed activity, call RICO’s Consumer Resource Center at (808) 587-
4272 or visit us online at cca.hawaii.gov/rico.
To call Oahu-RICO, dial the following toll free numbers: Kauai 274-3141, extension 74272; Maui 984-2400, extension
74272; Big Island 974-4000, extension 74272; Molokai and Lanai 1-800-468-4644, extension 74272, followed by the # sign.
RICO is the enforcement arm for over 45 professional boards, commissions, and programs that are administratively
attached to the Department of Commerce and Consumer Affairs. RICO receives complaints, conducts investigations, and
prosecutes licensing law violations. RICO also prosecutes unlicensed activity through the issuance of citations and by filing
civil lawsuits in the Circuit Courts. RICO works to resolve consumer complaints where appropriate and provides consumer
education about various issues relating to licensing and consumer protection. RICO also administers the State Certified
Arbitration Program (SCAP) for “lemon” motor vehicle claims.
This brochure is for informational purposes only and not intended for the purposes of providing legal advice. Information provided
is subject to change. Printed material can be made available for individuals with special needs in Braille, large print or audio tape.
Submit requests to the RICO Complaints and Enforcement Officer at 586-2666.
(rev.190718-MVI-Buying A New Car)
