Get Ready to Buy a Dirt Cheap Car Rental
There is currently not much demand for rental cars, and the industry is beginning to have an impact: Hertz, which also runs Dollar and Thrifty, filed for bankruptcy last week.
Even rental agencies that are in the best financial position are still planning worst-case scenarios, drastically cutting the number of new cars they plan to buy this year.
Their misfortune can mean big deals for you as car rental companies begin to unload their fleets to free up cash.
Car rental companies usually sell cars from their fleet after a certain period of time or amount of use. Due to the fact that the number of trips is now so limited and the demand for car rental is much below average, companies are offering deep discounts on the sale of their cars.
Of course, you may not need a 2019 Corvette, but Hertz is selling them at a $ 20,000 discount – just to give you an idea of how many rental companies are looking to get rid of cars that are just gathering dust.
For example, I checked the Hertz Car Sales website for Toyota Corollas and found a 2020 LE model with 21,000 miles sold for $ 14,500 – two thousand less than the low end of the market range for a car based on Kelley Blue Book data for my region. … Hertz advertises no-bargaining pricing, which means what you see is basically what you get – no nerve-wracking negotiation required.
With virtually every rental company trying to sell its excess inventory, the influx of new bids is likely to push prices down even further.
And while there are skeptics who say never buy a used car that has been used as a rental because you can’t guarantee the level of wear and tear caused by previous drivers, you probably don’t need to write off that option entirely.
As Tom said MakParland out by Jalopnik: «The probability to get beaten a car is not higher than buying any used car from a dealer or private seller.” In fact, the likelihood that ongoing maintenance has been performed is much higher than in the case of a purchase from a private owner.
Since rented cars are generally newer models, buying a used car can give you a head start for later service as well. “Depending on when you buy your rental car, it may still be covered by a manufacturer’s warranty,” said Greg Kopf, a brand spokesman for CARiD.com .
While the interior of the car may be in good condition, you may need to be a little more lenient about the exterior of the car, according to Kopf. “While the rental company won’t try to sell you a car with mechanical problems, you may have to ignore cosmetic damage – stains, odors, etc. – from careless or careless tenants,” he warned.
And while the rental company may offer financing, including some tempting incentives, a common rule applies to buying cars: do your research and submit your own financing offer from your bank or credit union if you don’t plan on paying in cash.
Kopf said most of the discounts on new cars come from ad finance rates, while used car rentals could actually drop below market prices. “If you are not tuned to a particular brand / model and are not picky about features, it may be easier and cheaper for you to shop at a rental company,” he said.