Guide to buying a rental car
Quick insights
- You may be able to buy rental cars from various rental car companies.
- Rental companies that sell vehicles in their fleet often do so to make room for newer models.
- Buying a rental car is generally similar to buying a used car and could have a number of advantages and disadvantages.
Buying a rental car could be an excellent option for a used car buyer with a limited budget. But as with any other pre-owned vehicle, doing your research can help ensure you drive away with a good deal.
Why do rental companies sell their cars?
Rental car companies often have a continuous supply of rental cars for sale. This is because they regularly upgrade their fleets by adding new vehicles. Usually, part of the existing fleet must be sold to make space for the new arrivals. This is how rental cars sometimes make their way to auctions and dealerships.
Large rental car companies might have departments dedicated to selling their used cars. These same companies may also have online sales platforms, so you can sift through their inventory based on your location and vehicle preferences.
Many rental companies also offer trade-in options to save you from the hassle of selling your car. Before you discuss your car's value with a rental company, assess the trade-in value of your vehicle with an independent party.
Potential advantages of buying a rental car
Discounts
When rental companies sell vehicles in their fleet, it’s often to make way for new vehicles. Aging vehicles can have higher maintenance costs over time, so a rental company may be interested in selling off vehicles quickly. Discounts could be offered to help tempt quick sales.
Newer cars
Many of the cars that rental companies sell might be just a few years old as a result. This could make rental cars an excellent option to grab a one- or two-year-old vehicle at a potentially more affordable price.
Try before you buy
Unlike some car dealers, many rental car companies have various programs in place so you can try out the vehicle before purchasing. These can range from test drives and return policies to renting options for a few days, where the rental cost is refunded when you purchase.
What to keep in mind before buying a rental car
There are some potential drawbacks to buying a rental car as well.
High mileage
Compared with typical used cars on the market, rental cars may have above-average mileage. This means a two-year-old rental car could have much more wear and tear compared to an average two-year-old used car. Vehicles may also require more maintenance based on the time they spend on the road.
Warranties are linked to mileage, too, so a rental car with high mileage might no longer have the manufacturer’s coverage. Given this possibility, consider checking the end dates of any warranties before buying a rental vehicle.
Limited selection
Compared to a dealership, car rental companies could have fewer car models to choose from. If you’re intent on taking advantage of their potentially low prices, it could help to broaden your list of preferred models. You might also need to keep checking back from time to time.
Lower resale value
Resale value can be important to consider if you’re thinking of buying a rental car. The resale value might be lower than that of comparable cars because rentals have a reputation for higher wear and tear. Maintenance history, age and mileage contribute to a car’s value. However, even rental cars with solid history and minimal use might have lower resale value than cars of the same age.
No extras
Many rental car companies avoid upgrades to keep their purchasing costs low. This means rental cars for sale might not have a ton of bells and whistles. This could be a disadvantage of buying a rental depending on how many features you’re looking for in a car.
How to buy a rental car
Buying a rental car may not be a very different process from buying a used car. You’ll probably want to follow the same steps and precautions, such as researching your options and confirming the vehicle’s history. There are a number of rental companies that could be selling vehicles in their fleet, so identifying these companies is always a good first step.
Here are several steps to take when you’re looking to buy a rental car:
- Determine your budget.
- Consider the purchasing and owning costs.
- Arrange financing options and calculate your loan payments to ensure you’re able to meet the repayment amounts.
- Carefully assess the pros and cons of buying a rental car.
- Carry out a thorough visual inspection of the vehicle’s interior and exterior condition.
- Request information about the vehicle history and verify the details with an independent report.
Final thoughts: Is it a good idea to buy a rental car?
As we’ve seen, buying a car from a rental company can have several noteworthy pros and cons. So, should you buy a rental car? The answer depends on your specific needs and the used-car market. It's certainly possible to grab a deal, but you’ll probably want to know exactly what you’re buying to feel good driving away.
