HB1666 • 2026

RELATING TO MOTOR VEHICLES.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: KILA
Last action: 2026-02-05
Official status: The committee(s) on TRN recommend(s) that the measure be deferred.
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Rules for New Car Sales

This bill sets rules about how much extra dealers can charge when selling new cars, limits charges during emergencies, and requires dealers to keep records.

What This Bill Does

Limits the amount a dealer can add to the price of a new car to no more than five percent above what the manufacturer suggests.
Does not allow any extra charges on new cars if there is an emergency declared by the governor.
Requires dealers to tell buyers about any extra charges and get their agreement in writing.
Needs dealers who offer direct financing for car purchases to set interest rates based only on how risky lending money to a buyer is, not on other factors.
Forces dealers to keep records of extra charges for at least three years.

Who It Names or Affects

Car buyers and sellers
Dealers who sell new cars

Terms To Know

Markup: The difference between the selling price of a car and its cost to the dealer, excluding government charges.
Manufacturer's suggested retail price: The recommended price by the car maker for dealers to sell new cars at.

Limits and Unknowns

Does not specify what happens if a dealer breaks these rules.
It is unclear how this will affect car prices during emergencies.
The bill does not explain who enforces these rules or what the penalties are for breaking them.

Bill History

2026-02-05 H
The committee(s) on TRN recommend(s) that the measure be deferred.
2026-02-03 H
Bill scheduled to be heard by TRN on Thursday, 02-05-26 9:30AM in House conference room 430 VIA VIDEOCONFERENCE.
2026-01-26 H
Referred to TRN, PBS, CPC, referral sheet 1
2026-01-21 H
Introduced and Pass First Reading.
2026-01-20 H
Prefiled.

Official Summary Text

RELATING TO MOTOR VEHICLES.
New Motor Vehicles; Markups; Maximum; State of Emergency; Documents; Direct Financing
Prohibits, for sales or offers for sale of new motor vehicles, markups in excess of five per cent of the manufacturer's suggested retail price, markups in excess of $0 when specified in a proclamation declaring a state of emergency, and charges added to rates not based on the underwriting risk or credit characteristics of the consumer when dealers directly finance motor vehicle purchases. Requires dealers to retain records for markups for a period of no less than three years.

Current Bill Text

Read the full stored bill text

HB1666

HOUSE OF REPRESENTATIVES

H.B. NO.

1666

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to motor vehicles
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1.
�
Chapter 437, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:

����
"
�437-
�
Limitations on markups for new motor
vehicles; maximum; state of emergency; documents; direct financing.
�
(a)
�
No dealer shall sell or offer for sale a new
motor vehicle to a consumer at a selling price that includes a markup in excess
of five per cent of the manufacturer's suggested retail price.

����
(b)
�
No dealer, when specified in the governor's
proclamation declaring a state of emergency declared pursuant to chapter 127A,
shall sell or offer for sale a new motor vehicle to a consumer that includes any
markup in the sell price.

����
(c)
�
The motor vehicle purchase agreement for a
new motor vehicle or any addendum to the agreement shall disclose the amount of
any markup and a justification for the markup.
�

The buyer shall separately acknowledge and consent to the disclosure.
�
Records of markups and acknowledgments and
consents shall be retained by the dealer for no less than three years.

����
(d)
�
For dealers that offer direct financing,
rates shall be solely based on the underwriting risk or credit characteristics
of the consumer.
�
Dealers shall not add a
charge to the rate that is not based on the underwriting risk or credit
characteristics of the consumer.

����
(e)
�
For purposes of this section:

����
"Destination
charge" means the cost incurred by the manufacturer to transport the motor
vehicle to the dealer.

����
"Government
charges" means all fees or charges imposed by a federal, state, or local
government agency, unit, or department, including taxes, license and
registration costs, inspection or certification costs, and any other such fees
or charges.

����
"Invoice
price" means the cost of the motor vehicle paid by the dealer to the
manufacturer.

����
"Manufacturer's
suggested retail price" means the price that a new motor vehicle's
manufacturer recommends a dealer sell that new motor vehicle at retail.

����
"Markup"
means the difference between:

����
(1)
�
The selling price; and

����
(2)
�
The sum of the motor vehicle's invoice
price and destination charge.

"Markup" excludes any government
charges.

����
"New
motor vehicle" means the initial transfer of legal title of a vehicle to a
consumer purchaser.
"

����
SECTION
2.
�
New statutory material is
underscored.

����
SECTION 3.
�
This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

New Motor
Vehicles; Markups; Maximum; State of Emergency; Documents; Direct Financing

Description:

Prohibits,
for sales or offers for sale of new motor vehicles, markups in excess of five
per cent of the manufacturer's suggested retail price, markups in excess of $0
when specified in a proclamation declaring a state of emergency, and charges
added to rates not based on the underwriting risk or credit characteristics of
the consumer when dealers directly finance motor vehicle purchases.
�
Requires dealers to retain records for
markups for a period of no less than three years.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.