Cars that are used in rental fleets from companies like Enterprise and Avis hit the market all the time. Rental car companies can acquire their vehicles by purchasing directly from manufacturers or dealerships, leasing or through auctions and trade-ins.
These cars are often priced cheaper than non-rental versions of the same model but carry their own share of unique risks.
Before deciding whether to buy a used rental car, you may want to ask yourself if getting a vehicle with multiple previous owners will be reliable enough to justify your purchase. To make an informed choice, it's important to weigh the pros and cons of buying a used rental car.
Pros
Strict Maintenance
Rental companies adhere to strict maintenance schedules to keep the cars in decent condition. No company wants to receive negative online reviews and ratings from clients about faulty cars so they regularly perform maintenance on their fleets to ensure proper functioning of the vehicles. This means that the cars undergo necessary inspections and services.
For greater peace of mind and to prevent costly repairs, you can also request the car's maintenance history and check whether the vehicle has suffered any damage.
Recent Models
Most of the used rental cars are only two to three years old. Selling off older cars and putting newer rentals for sale helps companies increase their profits by making their offers attractive to potential customers. By marketing the latest models, companies minimize the effects of depreciation, as these cars generally retain a strong resale value.
Newer models also offer lower maintenance costs, improved fuel efficiency and advanced technology. So, it's a win-win: the company gets a reasonable profit from its investment, while the customer benefits from a relatively low mileage, budget-friendly and better-maintained car.
Extended Warranties
Another advantage of getting a used rental car is that most rental companies offer extended warranties or a coverage plan beyond the manufacturer's warranty. These include coverage of engine and transmission issues, mechanical breakdowns and roadside assistance. An extended warranty will save you future repair costs when you buy a second-hand car.
Competitive Prices
Rentals depreciate faster. Compared to non-rental cars, used rental vehicles are cheaper. Since companies need to sell their cars quickly to avoid continued depreciation, the vehicles are sold at very competitive prices, with a large selection of models available for under $20,000. Rental companies often purchase large quantities of cars directly from manufacturers at discounted rates, allowing them to offer lower prices to customers.
Cons
There are several factors that buyers should be cautious of before buying a used car that was a rental.
Higher Mileage
According to the Federal Highway Administration, an individual typically drives around 13,476 miles annually, which amounts to almost 27,000 miles over two years. However, most two-year-old rental cars currently for sale have a mileage of 50,000 to 70,000 or more, influencing their condition and value.
A high-mileage car is a good option for those who understand the associated risks. Although these vehicles can wear out themselves more quickly than low-mileage cars, they are more budget-friendly and come with a maintenance record and vehicle history report.
On the other hand, even though rental companies have strict maintenance rules to follow, higher-mileage cars will still require more regular repairs as they age. So be prepared for the possibility of additional costs.
More Wear and Tear
Rental cars often live a rough life because drivers may not care for them as they would their own vehicles. With no sense of ownership, some renters smoke in the car, neglect to clean the interior and drive aggressively, which can wear out the brakes, suspension and transmission faster.
Make sure you properly examine and check the vehicle for any scratches and damage to avoid surprises and bad car experiences. And, if you are looking for a sports car, it might be worth looking for one that is privately owned and has a better maintenance history.
Less Inventory
Another drawback of buying a used rental car is the limited variety available. As rental companies update their inventory based on models that are in demand, there may be limited options for buyers when it comes to specific features. This means you might not find a model that fits all your preferences. Moreover, because these cars are only a few years old, the selection of older cars may also be limited. Chances are, if you're into vintage cars, you may not find the exact model you're looking for.
Lower Resale Value
Vehicles with higher mileage generally experience a faster decline in value compared to those with lower mileage, being advantageous yet risky for purchasers. You may secure a favorable price at first, but the car will continue to depreciate faster, especially if you intend to resell it in the future.
So, Is Buying a Used Rental Car a Good Idea?
If you're looking for a cheap and basic mode of transportation, then car rental services would be a great option, assuming excessive mileage and cosmetic wear are not an issue for you. If you're looking for a customizable or high-end car with low mileage, then you may want to consider other options.
How to Make Sure You Are Making an Informed Decision
- Use rental car company websites for vehicle search and price comparison. It's also highly recommended to read reviews about the companies you plan to visit.
- Schedule a test drive. Most companies refund the rental fee if you decide to buy the car.
- Inspect the vehicle thoroughly to spot any visible damage. Pay attention to any scratches, rust or dents on the exterior. Check that the doors, windows and trunk close properly. You might also want to ask a trustworthy independent mechanic to check the vehicle.
- Review the mileage.
Request maintenance records and vehicle history reports. Don't forget to ask about any existing warranties and add-ons.
The Bottom Line
Whether or not to buy a used rental car depends on personal preference and needs. To some, possible aggressive driving and high mileage might be negated by the possible good maintenance of the car and the cheaper initial cost. Others may be more cautious due to the potential risks associated with pre-use, such as wear and tear or bad maintenance history.