Pros and Cons of Buying a Rental Car
Lambo (Cars & Coffee of the Upstate) by Ken Lane — CC BY-NC-SA 2.0
Buying a used car is always a little bit of a gamble. Whether you’re purchasing from a major dealer, a used-exclusive reseller, or an individual owner, you will always have to contend with the history of the vehicle and how that affects its driveability and maintenance requirements today.
And some have a more complicated past than others. Take rental cars, for instance. These vehicles have short but often intense careers as loaners before they end up on the browsing lot.
If you’ve ever shopped at a used car dealership, chances are you’ve seen more than a few ex-rentals. Should you buy one? What’s different about buying a former road-tripper than other used vehicles? Let’s take a look at the pros and cons of buying a rental car.
Some things to think about before you shop for a former rental car Here are two things to keep in mind while you look at former rentals.
- The same rules apply. Rental cars from big-name companies will usually come with a very detailed repair history. And that’s great, but it doesn’t mean you don’t need to follow the same protocol you would with a different used vehicle to make sure you know what you’re getting into. You should still take a rental car to a trusted mechanic to identify any trouble areas or deal-breakers before you sign the paperwork. In this way, buying a rental car vs a non-rental car is exactly the same.
- Know the term “fleet vehicle.” Rentals on the dealership lot are often listed as “fleet cars,” which means that this vehicle was part of business and likely driven by many different people. This can include rental cars, company cars, taxis, police vehicles, delivery vehicles, etc. A rental car will almost always be listed as a “fleet” car on the lot, but keep in mind that not all “fleet” vehicles are rentals. Ask your dealer to learn more about the car’s working history.
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Pros and Cons of Buying a Rental Car
Of course there are benefits and drawbacks to buying any kind of vehicle, new or used. But the nature of a rental car’s life gives it a unique set of ups and downs to consider. So let’s get into some of the top pros and cons of buying a rental car.
- Pro: most rental cars are newer models. Rental companies purchase vehicles, often in bulk, from new and retire them relatively early.
One of the exciting things for most people about renting a vehicle is getting to experience a brand new model of car which you might not otherwise drive, so rental companies always have newer vehicles that renters are bound to love.
Typically, a vehicle purchased directly from the rental company will be no more than 5 years old and have up-to-date technology like advanced safety and infotainment features. * Con: rental cars are often missing options. To cut costs at initial purchase, some rental companies will go for the budget option and take off options you might otherwise find in a new or like-new vehicle from an independent owner.
Rental vehicles are often missing the super techy upgrades, luxury packages and other bells-and-whistles that make newer vehicles so fun to drive. If you’re looking for a car with all the latest tech, ask your dealer to find one that’s more feature-heavy. * Pro: rental cars are budget-friendly. Rental companies purchase their fleet vehicles at a much lower rate from the dealer, and therefore can sell them at a significant discount.
And they’re not in it for the money: usually they’re just trying to make room in their inventory for new vehicles. You will often find former rentals up to $1,000 cheaper than similar years makes and models.
Plus, rental companies will often let you test drive your car of choice for 3 to 7 days before they ask you to make a decision.
THE BEST USED LUXURY CARS ON THE MARKET
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- Con: rental cars have a lower resale value. This particular point in our list of the pros and cons of buying a rental car has two main reasons.
One, there is a definite stigma around them that makes drivers wary of purchasing former rentals. Two, because rentals are purchased and retired in bulk, they tend to flood the market around the same time and create a supply that far outweighs the demand.
It is notoriously difficult to sell a former rental car at market value, and will almost always be a loss for the owner. * Pro: rental cars are well maintained. Rental companies have to maintain a certain standard of cleanliness within the vehicle, so the interior will be meticulous, tidy, and nice-smelling.
Rental companies also have to perform by-the-book vehicle maintenance often in smaller intervals than most civilian vehicles because they are being used so much and so often.
You can bet that your former rental’s fluid change history and minor repair schedule will be almost perfect. * Con: rental cars usually have more wear and tear. Like we said earlier, rental cars lead short but intense lives while they’re on the job.
This usually means that they will be a little dinged up both inside and out. Some drivers specifically rent cars if they’re going to be putting them through a tougher situation than they would normally drive in, so rentals usually see their fair share of abuse and aggressive treatment, resulting in little scrapes and wear spots throughout. * Pro: rental cars can come with a limited warranty. Some rental vehicles are less than 18 months old when they retire, which means that they still fall under factory warranty which is passed to you when you purchase.
Even if this is not the case, most major rental companies will provide their own limited warranty if you buy directly from them. Hertz and Enterprise, for example, offer a 1 year protection plan with purchase of their former rental vehicles.
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- Con: rentals are almost always high-mileage. Rentals are driven a lot, sometimes 15,000 miles a year, and may have racked up up to 40,000 in their short career before they are passed on to you.
The good news for this point though is that you’re unlikely to find a vehicle with much more than 40,000 miles as this is when most major rental companies choose to retire their vehicles.
Get a Curated List of the Best Used Cars Near You
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