Quick Facts About Buying a Former Rental Car
- Former rental cars often come with a detailed maintenance history, with regular servicing by rental agencies to ensure reliability for customers.
- Buying an ex-rental car can save you money due to lower prices, but be prepared for potential wear from multiple drivers and the need for a thorough inspection.
- Assess the vehicle’s condition, review its history report, and get a professional inspection to mitigate risks associated with rental car usage.
Many rental car companies sell vehicles from their fleet throughout the year, sending tens of thousands of vehicles to dealerships across the country. While consumers might be unaware that the inventory includes former rental cars, these can be an excellent option depending on the vehicle’s condition and the sale price.
As costs for new and used models remain high, buying a previous rental car can be a great way to stay within your budget. Still, there are other factors to consider. Read on for a breakdown of the pros and cons of buying a car that used to be a rental.
- Why Rental Car Agencies Sell Their Cars
- Rental Car Companies That Sell Cars
- Benefits of Buying a Rental Car
- Drawbacks of Buying a Rental Car
- Should You Buy a Rental Car?
Why Rental Car Agencies Sell Their Cars
As new models become available, rental car agencies regularly refresh their lineup to offer the most attractive options to potential renters. Maintenance costs and depreciation also affect how long these companies keep vehicles in their fleets. Each car is an asset. If the upkeep expenses outweigh the value of these assets, the companies will often choose to sell those vehicles.
Rental Car Companies That Sell Cars
Several rental car companies, including (but not limited to) the agencies below, sell their used vehicles to the public as part of their business operations. Others sell off parts of their fleet to dealerships as they upgrade and refresh their rental lineup.
- Alamo
- Avis
- Budget
- Enterprise
- Hertz
Cars have typically been well-maintained during their tenure with the rental service, and some may also come with additional warranties and inspections.
Benefits of Buying a Rental Car
There are pros and cons with buying a rental car. Here are a few key benefits.
- Maintenance History: A primary benefit to buying a former rental car is maintenance history. Major rental agencies follow strict policies about oil changes, scheduled services, and fixing problems when they’re known. Staying on top of maintenance keeps their fleet healthy. It also helps avoid the embarrassment of renting cars with bad tires, illuminated check engine lights, or low-oil warnings.
- Better-Than-Regular Service: Many rental car agencies routinely inspect and service vehicles more often than private owners do. And some large locations even employ mechanics to perform essential vehicle services. Companies without on-site mechanics typically use dealerships for repairs and maintenance, so experts always perform service work.
- Price: Another benefit to buying a used rental car is its cost. Vehicle history reports will list a car’s previous use as a rental, and shoppers can use this information to negotiate a lower price. This gives bargain-hunting shoppers an edge when it comes time to sign the papers. Be sure to check used car values to see what you can expect to pay.
- Availability: Rental companies are ever-present in major cities and popular suburbs. These vehicles will often be listed for sale at local car dealerships in your area. The availability translates to more options on the used car market and can make finding something that fits your needs easier.
- Minimal Modifications: Ex-rental cars rarely come with customizations and aftermarket modifications. This means the vehicle is generally in its original factory settings.
Can You Finance a Former Rental Car?
While car rental companies may not offer direct financing, you can still apply for an auto loan through your bank or credit union to cover the purchase. If the ex-rental is on a used car lot, you can also consider the dealership’s financing options.
Drawbacks of Buying a Rental Car
There are also a few drawbacks to buying a rental car, or else shoppers wouldn’t ask if it was a good idea.
- Multiple Drivers: The biggest potential downside is the car’s history in the hands of car-rental customers. One reason is that the car must adapt to many driving styles: One driver may push the brakes often and go easy on the gas. A few days later, another driver may take hard stabs at the accelerator but use the brakes sparingly. Consistently being in service with different drivers could cause early wear on many of the car’s parts.
- Questionable Care: Rental customers may also fail to take excellent care of a car. While most car owners provide TLC and might think twice about squeezing their vehicle into a tight parking spot, rental customers may be more aggressive. The result is that rental cars may have more bumps, scrapes, and dings — or interior stains from spills — than a typical car.
- Inspections: We suggest hiring a trusted mechanic to perform a pre-purchase inspection of any used car. Sure, it adds to the upfront cost of your new-to-you car, but it may provide some insight into whether the vehicle is starting to wear prematurely. Rental cars endure a lot of miles in a short period. For buyers who would prefer not to take this step of having a professional inspection, we might suggest avoiding a former rental car. But for those willing to spend a couple hundred bucks for a mechanic to look at the car before you buy it, a used rental may be a well-maintained, inexpensive choice among used cars.
- Limited Warranty: Depending on the number of miles on the odometer, an ex-rental car may be out of the factory warranty, even if it’s a newer model year. This can result in higher maintenance costs if issues arise shortly after purchase.
Should You Buy a Rental Car?
Buying a rental car can be a good option when shopping for a newer model at a great price in today’s used car market. Rental cars for sale are typically newer models, but the number of miles on the odometer will vary greatly from one vehicle to the next. Some may also still be within the factory warranty limits.
Savvy shoppers will exercise caution, just as they should when buying from a private seller. Review the history report and assess the wear and tear before deciding if it’s the right purchase for your situation. Have a mechanic perform a thorough inspection to ensure the vehicle’s condition before buying. With proper diligence, an ex-rental car can be a reliable and cost-effective choice for shoppers who are in-the-know.
Editor’s Note: This article has been updated since its initial publication.
