Buying a used car can be a smart financial decision, but the used car market comes with its own set of considerations. One common question that arises for prospective buyers is whether purchasing a former rental car is a good idea. Last week on the Car Pro Show, a caller asked for my opinion on buying a used rental car, specifically from Enterprise. My response was nuanced, as there are both advantages and disadvantages to consider. Having worked with Enterprise Rent-A-Car, I know their fleet vehicles often experience more wear and tear and accumulate higher mileage compared to rentals from other companies. It’s also worth noting that some rental companies, like Enterprise, handle their own minor body repairs, which may not be reported on standard vehicle history reports like AutoCheck.
Vehicle history reports are crucial when evaluating any used car. They help uncover potential red flags such as prior accidents, flood damage, or odometer discrepancies. Discovering that a vehicle was previously a rental can be a concern for some buyers. Let’s delve into the pros and cons of buying a former rental car to help you make an informed decision.
The Upsides of Buying a Former Rental Car
One significant advantage of former rental cars is the often rigorous maintenance schedules enforced by rental companies. These companies are typically very meticulous about routine maintenance like oil changes and tire rotations. They utilize computer systems to ensure that essential maintenance tasks and manufacturer recalls are addressed promptly. In many cases, the maintenance practices of rental car companies surpass those of the average private car owner. This diligent upkeep can be a real benefit when considering a used vehicle.
The Downsides: Considering How Rental Cars Are Driven
The primary concern for many potential buyers of former rental cars is the unknown driving habits of previous renters. While it’s impossible to know exactly how each car was driven, some general observations can be made. Many rental car companies now sell vehicles with relatively low mileage. Furthermore, due to age restrictions and higher costs for younger drivers, most rental cars are driven by individuals over the age of 25. While most people drive reasonably responsibly in rental cars, they may be less attentive to minor cosmetic care, such as preventing food and drink spills. However, these types of cosmetic issues are usually addressed by rental companies before resale.
Other Factors to Consider
Repairs: Rental car companies are generally quick to repair exterior dents and dings, as they typically charge renters for any damage incurred during the rental period. As mentioned earlier, some companies conduct minor body repairs in-house, which might not appear on vehicle history reports. More substantial damage is usually processed through insurance companies, which will be documented in a vehicle history report. Understanding this repair process is important when evaluating a former rental.
Vehicle Options: When looking at a former rental, pay attention to the standard features and options. To minimize costs, rental companies often place special orders for vehicles, sometimes omitting optional features like OnStar or XM radio. A notable example from the past is when Enterprise Rent-a-car faced scrutiny for removing side airbags from certain vehicles in their rental fleet that were later sold. Always verify the included features and options.
Final Thoughts on Former Rental Cars
Overall, buying a former rental car can be a viable option under the right circumstances. Rental car companies are a major source of used vehicles for the automotive industry. It’s crucial to verify the remaining factory warranty, as assumptions can be misleading. For instance, while Hyundai and Kia advertise a 10-year/100,000-mile warranty, this is significantly reduced to 6-year/60,000-miles for used car buyers.
My key recommendation when considering a former rental car is to purchase it from a franchised new car dealership and only if it’s factory certified.
While some rental car companies sell directly to the public, I advise against this approach due to the potential for undisclosed issues. A factory certified pre-owned (CPO) car undergoes a comprehensive inspection, often involving 150 to 180 checkpoints, performed by a factory-certified technician. These vehicles typically come with an extended warranty, sometimes up to 100,000 miles or more. For me, the assurance of a former rental passing a rigorous certified inspection is paramount.
As with any used car purchase, exercise caution, conduct thorough research, and always review an AutoCheck vehicle history report before making a final decision.
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