Should you buy a used car from a rental company?



Buying a used rental car can be a good option, depending on the vehicle and your situation. As a borrower with less than stellar credit, you may have to do some research if you need financing. Here’s what you need to know.

Buying a car from a rental company

Buying a used car for rentalso called a software car or fleet car can seem risky – you never know who drove them or how. And they tend to have more miles on new cars due to the fact that they are more often rented. These risks are often outweighed by the fact that vehicles are generally well maintained to be safe for the type of driving they are often subjected to.

This means that car rental can be a decent option depending on what you are looking for.

Used cars are now in value due to a shortage of new cars coming to showrooms for the 2021 model year. If you are thinking about buying a used car now, before prices rise, you can consider all the options.

If one of them buys a used car from a rental company, you may have a few questions and we have the answers.

Buying a used vehicle FAQ

  • What car can I find at the rental agency? When you buy a car under the program, you are buying a used car. These are cars that have been used as leased vehicles, but are usually only a few years old. However, since many people have driven these cars, they tend to have more mileage. However, because car rental companies know that their cars are driven so much, they tend to do a good job of keeping up with the maintenance schedule so the cars can be well looked after.Should you buy a used car from a rental company?
  • Can I negotiate a price? Many people love to shop for the best price they can find, which is a good way to save money on both prices and interest rates. With rental agencies like Enterprise, Hertz, and Avis, it’s no surprise that you get the best price for the deal you’re looking for because these companies usually offer no-bargaining prices. This often means that the price you see is the price you pay.
  • Will it save me money? Buying a car from a rental company can usually save you money, typically about 10% cheaper than a used car at a dealership.
  • Is there a service guarantee? As with any used car, there is no endless warranty here, but since rented cars are usually only a few years old, some may still be covered by the remaining manufacturer’s warranties. Having a warranty helps cover repair costs if something happens to your vehicle during the warranty period. If the car you are looking at is no longer covered by the warranty, you usually have the option to add an extended warranty either through a retailer or through your own insurance company.
  • Can I finance a car fleet? You may be able to finance through some rental companies, however, as a borrower with a bad credit history, you may need to get a loan from a direct lender such as a bank or credit union to get the financing you need. However, these lenders can be more difficult to work with if your loan is losing money.

Buying a car for rent versus buying a car for rent

Buying a car from a rental company it’s not like renting your own car… Own car rentals are usually done through “Buy Here, Pay Here” dealerships and do not enter into the same contract as a used car from a rental company. When you buy from a place like Enterprise, it’s like financing a used car through a dealership. You make monthly payments on the loan until it is paid off.

When renting your own car, you pay either weekly or biweekly until you pay the agreed amount. Your own car rental can be returned to the site and you can leave without consequences. If you decide that you no longer need a car that you purchased or financed through a rental agency, you will have to sell the car yourself or exchange it for something else.

Ready to find your next car?

If you are looking to save some money on a used car, an older rental car might be a good option for a cheaper car. However, if your loan is interfering with your financing options, you may be better off with a subprime lender. These lenders specifically work with people in difficult credit situations such as bad credit, no credit, and even bankruptcy.

It can sometimes be difficult to find one of these lenders if you don’t know where to look, but Car loan Express, we can help. We want to put you in touch with a dedicated finance dealer in your area who works with the lenders you are looking for. To get started now, just complete our quick, free, no obligation car loan application formand we’ll get to work for you!


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