Buying a Used Car from a Rental Company
Purchasing a used car from a dealer can be a nerve-racking experience. It’s so stressful because people often either ending up paying too much, or get a car that is of poor quality. Many consumers only think there’s a couple of options, like dealerships, private parties, and auctions. However, not so many people think of buying a used car from a rental company. Here are a few reasons why it might be a good fit for you and your budget.
Purchasing a Used Rental Car is Not as Bad as You Think
Rental companies like Budget and Hertz have been in business for decades. They have a reputation to keep, especially in the internet age, where anyone can post a good or bad review. These companies are not out to sell shady lemon cars that have secret mechanical flaws or hidden salvage titles. These vehicles are always inspected for any problems before they are sold to the public. There are a few things you should know though before you buy a pre-driven rental car.
One of the first things to ponder is the quality of cars. Most people are terrified of buying from a rental place because they think the vehicles have been trashed and driven hard. While it is true some people do drive more carelessly in rentals; most people drive the same as they always do. Just because someone is renting from Avis or Alamo doesn’t mean they will race down the freeway at 120 miles per hour. Some motorists drive more cautiously because they waive the car insurance fees and do not want to get into an accident, or stopped by the police. Others drive safer because they are learning about the automobiles features and want to take it slow and cautious.
Another worry is the cars will be badly kept with damaged interiors. The truth is these vehicles are washed more often than most cars, and that includes the inside. Nearly all rental cars are stored in carports or in large garages, away from harmful sun damage, which keeps the cars looking better and newer.
Another big plus is maintenance. Rental vehicles are well taken care of for the most part. This means regular servicing including oil changes, brake pads, part replacements and so on. If there is a serious mechanical issue, it is usually fixed right away. This means these cars are it “tip-top” shape with no repairs needed, once someone takes ownership. Nonetheless, it’s always smart to have an outside mechanic thoroughly check out any vehicle you are thinking of buying. There may be serious mechanical issues that have been overlooked that a professional mechanic sees, saving you thousands in repair expenses.
Prices are Often Much Lower than Other Dealerships
Everyone loves a good deal. Rental car firms offer many models at thousands less than the Kelley Blue Book value. You might wonder, how can they do this? These are billion dollar companies that buy in massive volume, direct from car manufacturers. They then rent those cars out at a high profit, often recouping the cost of the vehicle in a couple years. They pass these cost savings down right to you the consumer. This is also why they can sell below most dealers, whose business profits strictly depends on sales. Rental companies have a nice price advantage over their dealer competition. Most people can save over $1,000 and get a high-quality car that equals or exceeds most dealerships.
Manufacturer Warranty Advantage
Most rental cars are only 1 or 2 years old. This means they still have the manufacturers warranty. This is a huge advantage for those who want the added protection a warranty offers. Some companies like Hertz have their own in-house warranty program, that is good for 12 months – 12,000 miles.
Low Cost Auto Financing
Hertz, Budget and other companies have their own “in-house” financing department. Customers that have bad to excellent credit can get fair rates on the spot, without having to get outside loans from lending institutions. For those that are lucky enough to have very good credit, loans start at about 3% annual percentage rate (apr).
Extensive Inventory Advantage
Most large rental dealers like Hertz have thousands of cars for sale, with many popular brands like Nissan and Hyundai. You can check out their websites and search online for the car you want, including color and features. You can also get pre-approved financing online, which saves a lot of time and hassle. Once you find the car you want, you can pick it up at the dealer or have it shipped to you.
No Haggling Pricing
Another feature that makes buying a used car from a rental company easy is the no hassle pricing. All vehicles have a final price posted, so there is no need to stress out about negotiating. The price you see is already low, making it easy to calculate your auto loan or what you will need to buy it in full.
Get Direct Car Insurance Online
Once you’ve found the car you want, you’ll need to get it insured as cheaply as possible. There’s no better place to do so than online at direct insurers like loya insurance. You can compare multiple direct auto quotes with your smartphone or tablet in about 4 minutes. Most consumers save $500 or more. Get started now and get the best deal on your automobile and insurance.