The Pros and Cons of Buying a Used Rental

I’ll admit it, it’s never even occurred to me nor have I ever even heard of it happening. But all the sudden I am hearing about people buying used rental cars and now I have a lot of questions. I mean, have you ever thought about buying a rental car?

So while you’re on the hunt for used cars Albany NY has a whole slew of rental car agencies for you to also check out. If you think about it, you know these are cars that are being taken care of because people won’t rent beaters.

And sure, there definitely is some mileage on used rentals, but that’s something that you accept when you’re buying a used car regardless. You expect the mileage.

Let’s look a little further into the pros and cons of buying a used rental car to see if this is really the best choice.

Pros

There are a number of pros that highlight this list. A couple of the pros being that you know they are serviced by professionals, they’re newer cars, the test drive is better with a rental company than anywhere else, and cost.

Most Are Newer Models

Most rental agencies get their rentals straight from the dealership brand new and then have a set number of miles they will use the car for. In that model year, the car will already have a number of miles put on it, way more than any single driver would put on it but because its sole purpose is to be rented, the miles will be high.

Regardless, it is still going to only be a couple years old at best and given its being professionally and regularly serviced, it should still be in good condition with plenty of good years left in it.

Also, buying a newer model becomes more affordable from a rental agency than a dealership because of the high mileage.

So that newer, higher trim model you’ve been eyeing may just now be the car for you.

Maintenance History

Probably the very best part of buying a used rental car is that you can be sure of its maintenance history. Rental companies have very strict policies about servicing their cars.

Knowing that people won’t rent cars that look crummy or are falling apart, they have strict guidelines regarding oil changes, annual services and general maintenance and upkeep. Further, it would reflect poorly on the rental agency if their cars were consistently bad cars.

Another part of the attention to maintenance is that you know it was serviced by professionals. Most car rental businesses keep mechanics in house, so if you can see that this is the case, you can be mostly assured that the cars from this rental agency are being seen regularly.

Test Drive

If you’re contemplating purchasing a used car from a rental agency, let them know. A decent amount of places will let you test drive the car for a couple of days and sometimes for free.

If you let them know you are serious about wanting to purchase from them rather than a dealership they will be willing to work with you. After all, cars leave their lot all the time.

While some places may charge you to rent the car first as a test drive, you can then be deducted the cost of the rental should you buy it. This isn’t always the best method, but if you shop around, you can find the rental agencies that allow for free test drives.

Cost

Mainly, the reason people buy used cars from car rental companies is to get a break on the price. Like mentioned earlier, every rental car has an expiration date and when that time comes, usually the dealer buys back the rental for parts or to be sold on their lots because they, too, know that rental agencies are scrupulous about the maintenance of the vehicle.

However, the dealer will not buy back a rental that has been dinged up with scratches or small dents. Should one of these catch your eye, but you notice it has some bruises, most rental agencies will be willing to fix those for you if you are willing to buy it. This will lower the price even more.

Cons

Of course, with the good comes the bad. Here is a list of reasons why buying a used car from a rental agency may not be the best choice for you.

Limited Selection

Because car rental agencies are not particularly interested in providing the hottest, trendiest new cars for rentals, that won’t be an option for you. Instead, car rentals will be reliable, good, durable cars with great track records.

Given the way standards are for manufacturers and what consumers are demanding in their cars, finding a good car that still attractive won’t be difficult; it just won’t be the hottest car around.

Not Negotiable

Because rental cars most often return to the dealer at the end of their rental life, their expected buyer already exists. If you try to seriously negotiate or haggle a rental car employee, they are likely to turn you down.

They are not salesmen. They are not in the business of selling cars so they are not in the mood, nor do they have to, haggle with you.

While they prefer to sell the car to a customer rather than a dealer simply because it does provide a bit more profit for them; the margin is small. Only about $500-1000 more can be made from buying to a customer.

No Financing

Again, because car rental lots are not a dealerships they won’t offer you financing.

If you go into a car rental lot expecting to be able to trade, haggle, or finance a used car, you are in the wrong lot.

They are not a dealership so they won’t come with the advantages that a dealership does. Should you require financing, local banks are usually willing to provide small personal loans and will come will most times be more flexible than a dealership on payment plans.

The More You Know

Besides the pros and cons, there are things you will want and need to know about buying a rental car. Because you still purchasing a used car, you can treat it the same way. Have a history report pulled on the car you are interested in.

Most reputable car rental businesses will provide a carfax or the like along in the package. If this still doesn’t please you, take it to your trusted mechanic and have them check it out to your liking.

If you already having your eye on a particular vehicle that is being rented, find out all you can about it, but definitely know the fair market value for the car. This will help you when you present your case to the rental agency. Kelley Blue Book is an excellent resource for getting this information.

Also, you may want to check with the dealership or manufacturer if this car is still under warranty. A lot of rentals will have their cars covered by warranty which is good information to have but also check the details. Some warranties don’t transfer to different owners.

If you are really hunting for a used car but can’t seem to find what you are looking for, then maybe a car rental lot isn’t a bad idea. See if you can take a test drive around and find the right used rental for you.

Just remember it is not a dealership.