Should you buy a rental car?
Conventional wisdom tells you that when it comes to buying a car, you want something with low mileage and less wear and tear. Buying a car that’s been driven for a long time or by tons of other drivers can lead to increased repair costs and less reliability. Because of this, as well as an ever evolving slew of automotive features, getting a brand new or lightly used car is often the aim when shopping for a car. But if you want to save money, there are great deals on former rental vehicles.
You may feel hesitation when buying a former rental vehicle. After all you don’t really know who has been driving it or how hard it’s been pushed over the years. The last thing you want to do is buy a lemon. Here are a few things to consider when you buy a rental car:
Pros of ex-rental cars
The major pro of buying a former rental vehicle is the money you save on the price of the car. Price depreciation on cars is usually high. CarsDirect pegs the average price drop in new vehicles after one year at 19%. The next few years after that? 15%. The Globe and Mail reports the average transaction price for new vehicles at right around $29,000. That means in the first year of ownership you’re basically kissing $5,510 goodbye. In another year after that, your total depreciation rises to about $9,000.
Rental cars are usually bought at fleet prices and sold after they’re a couple of years old. Companies have lower profit margins to meet and can sell them for competitive prices. Plus, you’re saving all that depreciation money and still getting access to a late-model vehicle when you buy a rental car.
The other huge advantage of a rental car is that there’s a very high likelihood that the company has kept it excellently maintained, which will save you the headache and expense of buying a car that breaks down a week after you get it.
Con of ex-rental cars
The mind can conjure up no end of a rental car’s horrible treatment at the hands of its many customers. For this reason alone, you might not be sure if buying one is worth it. The truth of the matter is that rental cars are often treated the same as one’s own car. That doesn’t eliminate the possibility that a bad apple or two decided to abuse the car you have your eye on. When buying any used car, insist on a pre-purchase inspection and a copy of the vehicle history.
Overall, ex-rental vehicles may be stigmatized, but they’re really not bad deals. If you decide to buy a rental car, check the big rental companies’ websites for their listings and don’t forget to shop around for car insurance once you’ve got your new ride.