The first reaction most people have when thinking about buying a used rental car is “absolutely not!” This is evidenced in their lower resale value than non-rental brethren (CARFAX reports will tell you if a car was once a rental) and the fact that most people have a “close friend” who tells them about how people love to jam rental car transmissions into reverse at 65 miles per hour (that can’t happen).
The truth of the matter is that, despite their occasionally high mileages for their age, most rental cars are very well taken care of. Unlike some owners, rental car agencies follow the maintenance schedules exactly as required by the manufacturer. Why wouldn’t they? Do you think they want that Chevy Aveo in a repair shop getting a new engine or out infuriating the poor sod who just rented it?
While some used rental cars are sold at lots run by rental companies like Hertz and Enterprise, others are sold off wholesale to car dealerships to be sold on their used car lots. Again, the best way to find out if the used car you are looking at is an ex-rental is to check the CARFAX report.
If your car is an ex-rental most car value guides like The Black Book or Kelley Blue Book will mark down the value accordingly. So as long as you aren’t scared of buying a used rental car you can get quite a hefty discount on a used car if you know how to leverage that information with the dealer.
There are some pitfalls that ex-rental car buyers can fall into, however. First off some rental car agencies have their own body shops where they can take care of the occasional fender bender and not have to run it through a major insurance company. (This is what happens if you buy the rental company’s insurance when you sign the contract.)
In doing so this can mean an accident might not show up on a CARFAX report so be aware of any signs of paint respraying or poor fitting body panels. If you know a mechanic or car expert you can bring along to check the vehicle then all the better. Most major car rental agencies like Hertz and Enterprise don’t mess around with such things so sometimes it is better to buy directly from a major firm rather than from “Ed’s Local Rent a Clunker.
Buying a used rental car also doesn’t mean you have to drive something that is an utterly soul-less econobox. Many companies like Hertz carry sports cars like the Nissan 350Z roadster and luxury cars like the Saab 9-3. There are also economy choices like the stalwart Honda Civic and Toyota Corolla as well as oddballs like the Kia Rondo. Large SUVs and minivans are also very popular on rental car lots and many of these cars can be bought for thousands of dollars less than used cars owned or leased by a private party.
If you choose to buy from one of the rental car agencies own lots you are essentially looking at the cream of the crop of their own collection. These are not the cars that someone smoked in or dropped a Big Gulp on the passenger seat. Often times the rental cars in bad condition wind up at those semi-seedy used car lots you find in the bad part of town. Neither a rental car agency nor a dealership really wants to deal with a filthy car that could easily become a lemon.
For example, at Hertz each car undergoes a full mechanical inspection and comes with a 12 month/12,000 mile powertrain (engine and transmission) warranty in addition to whatever manufacturer warranty is left. Most of their rental cars are sold when they have about 30,000 miles on them but you can easily find models with less.
Here are just a few examples of models and prices available from some of the major rental car agencies at their lots in Southern California. If you check used listings for similar private party used cars at dealerships you will find the cost for similar mileage vehicles is much higher. So as with any used car, be a smart shopper and be sure to do all your homework. (And always be sure to check the CARFAX report!)
(Note: The following are all model year 2008 or 2009 vehicles and are to be considered examples only. Visit rental car sales agency websites for exact prices and offers.)
HERTZ CAR SALES:
Hyundai Sonata GLS: (31,274 miles)–$13,995
BMW 328i: (25,724 miles)–$23,995
Toyota Sienna: (34,725 miles)–$15,995
Honda Civic: (28,775 miles)–$14,995
Infiniti FX35: (27,661 miles)–$22,995
Nissan Altima S: (38,225 miles)–$13,995
Enterprise Car Sales:
Toyota Tundra: (15,274 miles)–$23,995
Nissan Maxima: (23,924 miles)—$22,995
Pontiac Vibe: (12,276 miles)—$12,995
Nissan Quest: (20,787 miles)—$17,995
