Moreover, rental companies often buy fleet vehicles and are the biggest source of 1- and 2-year-old used cars. Rental agencies generally sell their vehicles after a year or two (though they may hang on to them longer because of the financial strain caused by the COVID-19 pandemic).
There are a vast number of places you can find a used car. You can buy from a private party, a used car dealer, or a franchised new car dealer. Another option is buying a former rental car from the rental car company itself.
When you're in the market for a pre-owned vehicle, you'll probably see ads from companies such as Enterprise Car Sales, Hertz Car Sales, and Avis Car Sales. They sell hundreds of thousands of cars each year on the used car market as they refresh their fleets with new vehicles. The companies have locations across the country. Some, such as those owned by Enterprise Car Sales, are corporate-owned, while others are franchises. The vehicles they sell are generally young, with fairly low mileage and complete service records.
Depending on what you're looking for, they may be excellent deals. However, it's important to remember that they're still used cars, and you have to do your due diligence to ensure you're getting a good vehicle, a reasonable price, and the right financing. It's vital to keep in mind that you can't get a good deal unless you get a good car. Our used car rankings and reviews are an excellent place to start your car-buying adventure. They're designed around the questions shoppers have when they're in the market for a used car.
Rental car companies typically keep cars in their fleets for just a year or two, so you're likely to find models with the latest safety and infotainment technology. They'll have safety features now required on all new cars, such as rearview cameras and stability control, and technologies that have only recently gained broad market acceptance, such as Android Auto and Apple CarPlay.
"We focus on high-quality one- to three-year vehicles, whether they be cars, trucks, SUVs," says Mike Bystrom, a Corporate Vice-President at Enterprise Car Sales. "Coming out of rental fleets, they're all very well equipped with in-demand, high-tech, high-end features. Because that's what the retail public is purchasing."
Because they're young, they're more likely to include advanced safety and driver-assistance features than older cars, such as automatic emergency braking, lane-keeping assist, and adaptive cruise control. If, for example, you're able to find a 2019 Toyota Camry that served in a rental fleet, you'll get all of those features and more.
The last thing a rent-a-car company such as Hertz, Avis, or Enterprise wants to happen is to have a rental customer stranded by a problem with their rented vehicle. They carefully maintain their fleets to ensure that doesn't happen. Since 2016, rental car firms have been required to ensure all open recalls are taken care of before renting out a vehicle.
Almost every major rental car company offers online search tools to help you find either a specific vehicle, or what cars, trucks, and SUVs are available in your area. On many sites, you can search by price, mileage, age, and even fuel economy. You can usually set a search radius, so you're not looking at cars that are too far away from your home.
Many used rental cars have lower price tags than you'll find from used car dealerships or even private parties. Some of the differences may come from their condition or mileage, but it also stems from the fact that rental car companies buy in high volume. As a result, they don't pay the same prices when they purchase their vehicles new as other buyers do. They can afford to sell them for less.
Most national rental car companies advertise no-haggle pricing for their cars. They simply want to sell them quickly and with little hassle. It is important, though, to make sure you're looking at the vehicle's full price, including any fees involved in the sale.
Many national car rental companies offer warranties on the vehicles they sell. Enterprise Car Sales, for example, provides 12 months or 12,000 miles of powertrain coverage. It starts the day you buy the car. Because of their young age, many rentals will still have some of the original manufacturer's warranty coverage remaining.
If the seller provides the coverage, you should note when the coverage starts and ends. Typically, a rental car company warranty isn't added to the end of the automaker's warranty; it starts the day you buy the car. Here's an example: We'll say you're buying a car with 31,000 miles on its odometer, a manufacturer's warranty that lasts until it reaches 36,000 miles, and a 12,000-mile powertrain warranty from the rental car company that sold you the car. The manufacturer's warranty will take you to 36,000 miles. Then, the rental company's warranty will cover you for the remaining portion of its 12,000 miles or until your car reaches 43,000 miles.
Most of the warranties provided by rental fleet companies are powertrain warranties. That means they only cover the parts of the car that get you moving, such as the engine, transmission, and differentials. They don't cover things such as infotainment systems, power windows, or climate control systems.
In many cases, you will be offered an extended warranty. Before you buy, be sure to read our guide to buying an extended car warranty. It's critical you comparison shop and check out the company behind the coverage before deciding to buy a service contract or extended warranty.
Cars that have only been owned by one person or company are typically worth more in the used car market than those passed from owner to owner. Nearly every vehicle sold by a rental car company is a one-owner car.
Rental car companies look at several factors when deciding whether to sell or retain a car. One of those is its mileage. A pre-owned rental car will often have more miles on its odometer than an equivalent privately owned vehicle. After all, nobody rents a vehicle to park it.
If you're able to get a low-mileage car, you'll likely have plenty of manufacturer's bumper-to-bumper warranty coverage. Buy a high-mileage former rent-a-car, and you'll have to rely on the more limited warranty provided by the rental car company or go without coverage if you buy the rental car from another used car dealership.
One of the biggest reasons shoppers cite for avoiding used rental cars is the idea that the vehicles are driven hard and treated poorly. While, yes, they are driven by multiple drivers with varying levels of aggression and skill, they're generally well-maintained with any issues quickly fixed. Today's rental car companies carefully inspect vehicles at the beginning and end of their rental periods, and renters know they have to pay for any damage they cause.
Still, rental customers don't have the pride of ownership they have in their own cars. You can expect minor dings and scratches, as well as spills and stains on the interior. While most former rental cars receive thorough inspections before they go on sale, the level of cosmetic refurbishment varies greatly among sellers.
If you're looking for a specialized model, top-trim level, or high-demand vehicle, you may be hard-pressed to find one as a former rental car. Though the span of vehicles used as rental cars has expanded beyond bland sedans to mirror American consumers' tastes, some vehicles are rare in daily rental fleets.
Still, many of the models in rental car fleets are low-to-midrange trim vehicles, rather than top-tier models. In fact, some basic trim-level vehicles are only sold to fleets and not generally to retail buyers. Some of those end up in rental fleets, and then on rental company resale lots. While you may now be able to find pickups in rental fleets, you're much more likely to find a trim such as a 2018 Ram 1500 Big Horn than a top-trim Laramie Longhorn.
Savvy shoppers know to check any used vehicle's CarFax or AutoCheck vehicle history report before they buy. When you decide to sell a car that was once a rental car, its vehicle history report will show that its first owner was a rental car company.
With the ongoing COVID-19 pandemic, many former mass-transit riders are looking for safer alternatives, such as cheap used cars. While the cars coming out of rental fleets are often sold for less than others in the marketplace, they're typically fairly new. That means you won't find $3,000 to $5,000 cars on the rental car company sales lots.
Both used rental cars and factory-certified used cars are typically just a few years old, and are well-cared for and inspected before they're put up for sale. They both usually come with some warranty coverage and sometimes extras, such as roadside assistance.
The quality of warranty coverage you receive from a rental car sales company can vary greatly from company to company, and even from franchisee to franchisee. Be sure to read the warranty terms closely to see where you can get your car serviced, what is covered, and whether there is a deductible. The automaker will not back the warranty, and you may or may not be able to have your repairs completed at a new car dealership.
Rental car companies use a couple of channels to sell their excess vehicles. Most of the big rental car companies, such as Hertz, Avis, Enterprise, and their subsidiaries, have branded car dealerships of their own. Some are owned by the companies themselves, while others are franchises.
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