What is DriveNow?
DriveNow is a fully insured, residual based, ‘walk-away’ balloon financing option with an End of Term process managed completely by our partner Auto Financial Group. By financing your vehicle through the DriveNow program, you can experience lower monthly payments like a lease with all of the conveniences of conventional financing. DriveNow terms are available for up to 60 months. At any time during the life of the loan, you can trade, sell, payoff or refinance your vehicle just like a conventional loan. At loan maturity you also have the option of simply turning in your vehicle and walking-away in lieu of making your final balloon payment if you decide to not keep the vehicle or choose not to elect one of the other 4 options listed above. HawaiiUSA will accept your vehicle as final payoff of your loan (subject to terms and conditions).
Who is this loan best for?
A DriveNow Auto Loan is best for those who:
- Want more car for your money
- Want a lower monthly payment
- Do not want to be tied to lengthy auto lending terms or want to shorten your trade cycle
- Get out of a negative equity cycle and/or want to be protected from vehicle depreciation
How does DriveNow differ from a traditional auto lease loan?
Unlike a traditional lease, the vehicle is titled in your name with HawaiiUSA as the lien holder just like conventional financing. In other words, you own the vehicle assuming payments are made on time and throughout the term of the loan. There are no upfront costs typically associated with leasing such as acquisition fees, captalization fees, first or last payment due at signing etc. Since the vehicle is titled in your name you can sell, trade, refi or payoff your loan at any time with no early termination fees or pre-payment penalty fees. You can also carry the level of insurance of your choice. HawaiiUSA is offering flexible term options of up to 60 months on the DriveNow program and vehicles 5 model years and newer qualify. Ownership can extend to an individual, co-borrower, and/or guarantor.
How do I get started?
You can visit one of HawaiiUSA’s 14 convenient branch locations, contact our Call Center at (808) 534.4300 (on Oahu) or toll-free (800) 379.1300 (Neighbor Islands or mainland), or apply at any of the 30 Participating Car Dealerships statewide. Necessary things needed when applying include a valid picture ID (ex: State, Driver’s License, U.S. Passport, or Military), one month’s worth of recent paystubs, and the vehicle purchase order.
Who is eligible for a DriveNow Auto Loan?
The DriveNow Auto Loan is open and eligible to all active HawaiiUSA members in good standing and meets the HawaiiUSA credit underwriting guidelines. For non-members interested in applying, they can open a HawaiiUSA membership upon loan approval. DriveNow is not available to Tier 5 credit scores.
What vehicle models are eligible under the DriveNow program?
Vehicles 5 model years and newer qualify for the DriveNow program (subject to odometer reading at loan inception). Only exceptions are salvaged titled vehicles, grey market vehicles and vehicles covered under the Lemon Law. As a general rule, vehicles found on the HawaiiUSA CarBuilder Calculator are eligible under the program.
What is “residual value” of the vehicle?
Residual value is the projected value of the vehicle at the end of the loan term based on criteria established at loan inception as determined by the AFG, which go into the calculations for monthly payments of the vehicle based on information provided by HawaiiUSA and the member. AFG guarantees this value to the lender if the borrower elects to surrender the vehicle in lieu of making the final payment. All eligible vehicles are covered with Residual Value Insurance.
What happens if a vehicle is quoted at the end of one residual period but isn’t funded and/or delivered until the beginning of the next residual period?
AFG will honor residual values on vehicles from the previous residual period for the first six days of the new Residual AFG period if the lender or dealership can produce a hard copy of the quote with the previous residual information.
Because each vehicle comes with its own Residual Value Insurance, do I need to carry personal auto insurance on the vehicle during the loan?
Yes, just like a conventional loan you must obtain vehicle insurance that adheres to Hawaii’s state minimum requiement for vehicle insurance as well as HawaiiUSA’s requirement for obtaining an auto loan through our institution.
What are the potential savings associated with DriveNow?
With a DriveNow Auto Loan, you can expect to pay up to 30%-40% less when compared to conventional financing for the same term. Additional savings can be had with a further .25% rate discount with the enrollment of ACH payments.
What are the mileage options available?
The program offers three annual mileage options: 12,000 miles, 15,000 miles, and 18,000 miles.
What is the excess mileage charge?
In the event you choose the walk-away option at loan maturity and have gone over your annual mileage allowance, there will be a $0.10 per mile charge. If you sell, trade, payoff or refinance your vehicle at any time during the life of the loan or at loan maturity, mileage and over mileage fees are not applicable
What if the vehicle already has mileage on the odometer?
The number of miles on the odometer at time of loan origination is adjusted for such mileage. Therefore, you receive the full mileage allowance chosen in addition to the existing mileage on the odometer.
What happens at the end of the loan?
At loan maturity, a final balloon payment that was calculated at loan inception for the remaining balance of the loan will be due. However, you are never on the hook for that final balloon payment. At any time during the life of the loan or at loan maturity, you can sell, trade, payoff or refinance your balloon amount. You also have the additional option of simply turning your vehicle in and HawaiiUSA will accept your vehicle as final payoff of your loan (subject to terms and conditions). If you decide to turn in your vehicle and walk-away from your balloon payment, Auto Financial Group (HawaiiUSA’s partner) will coordinate an inspection and pickup of the vehicle even if you have moved to a different state! In choosing the walk-away option you will be responsible for a $195 disposition fee, excess wear and tear on the vehicle if applicable and any over-mileage fees. These potential fees will be disclosed to you during the pre-inspection process conducted by our partner Auto Financial Group.