Pros and cons of buying cars retired from rental fleets.

When car rental companies update the vehicles in their fleets, their used vehicles often go on sale to the public. While some of these vehicles can have a lot of wear, there are still benefits to buying cars this way. Let’s look at the pros and cons of buying a former rental car.

Pros of buying a used rental car

Competitive pricing is a key advantage of buying a used rental car. Many are sold for $20,000 or less, according to Consumer Reports, putting a vehicle within reach of cost-conscious buyers. Major car rental companies even offer extras like a warranty, roadside assistance and the option to return the car within a week, providing financial protection and flexibility for buyers.

Another pro is that rental cars are serviced regularly, and buyers typically receive a report on the car’s maintenance history.

You also won’t have to worry about the quality of any aftermarket equipment as you might when buying a used car from an individual or dealer. The equipment you get is exactly what was installed at the factory.

Cons of buying a used rental car

There are drawbacks to buying a used rental car, too.

When many people think of a rental car, they envision lots of wear and tear due to the car’s numerous drivers. Some people drive aggressively and push a car to its limits. They may drive off-road or overload the vehicle. Others are poor drivers. Consider the gear damage that can happen when the car is backed up and the driver doesn’t wait for the vehicle to come to a complete stop before shifting from reverse to drive.

In addition to questionable driving, rental cars may have higher mileage than comparable used cars. Most two-year-old rental cars for sale have mileage readings of 50,000 to 70,000, according to UsedCars.com. The typical individual drives just 27,000 miles in two years. Higher mileage may mean the car is no longer covered by the factory warranty.

Another con is that rental cars don’t receive much in the way of TLC from drivers. The car may have exterior flaws like dents and scratches. Inside, rental vehicles are no strangers to spilled drinks and food, dirt, and human and animal accidents. If the “ick factor” comes into play, complete detailing can add another $150 to $350 to the buyer’s cost.

If buying a used rental car sounds good, assess and inspect

For many people, buying a used rental car is an affordable way to get basic transportation. Just as you would with any used car purchase, find out as much as you can beforehand. Specifically:

• Test drive the car. How does it handle? Do you notice any pulling, unusual or excessive noise or discomfort? Check out our list of used car red flags.
• Review the maintenance history and run a vehicle report from a company like Carfax or Kelley Blue Book.
• Get an inspection by a trusted mechanic. A mechanic can give you an unbiased report on the car’s condition and alert you to any mechanical, structural or safety issues.

Can you finance a used rental car?

Consumers can help you finance a used rental car. We recommend getting pre-approved for a used vehicle loan before you go car shopping so you know exactly how much you can afford. If the process of financing a car is new to you, our loan officers will guide you every step of the way. Call us at 800.991.2221 with your questions.

 

All loans subject to approval. Rates, terms, and conditions are subject to change may vary based on credit worthiness, qualifications, and collateral conditions.