Are Rental Cars Good to Buy?
Buying a rental car doesn’t have to be scary. If you shop at one of the major rental car companies, you could get a good car at a reasonable price, with a known service history.
On the downside, the mileage is usually higher than a typical used car, and there may be more wear and tear.
Key takeaways
- High-mileage rental cars usually have low prices.
- A used rental car comes with a known service history.
- Rental cars may have more wear and tear.
- No-haggle sales, rent-to-buy programs are available.
Pros and cons of buying rental cars
The experience of buying a rental car can be more relaxed than at a traditional dealership. Major car rental companies like Avis, Enterprise and Hertz have their own used car lots, so you can look around and take a test drive at your own pace.
Rental cars may have high mileage for their model years and may not be available in luxury trim levels, but that is also reflected in the price.
| Pros | Cons |
|---|---|
Competitive pricing Try before you buy Good maintenance history | High mileage for age Wear and tear Fewer luxury options |
Pros of buying rental cars
Sure, some people drive a rental car like they stole it. But at least rental cars are serviced and detailed regularly, receiving more care than the average used car.
Also, most rental fleets are only a few years old, so many of the vehicles have the latest driver-assist features as standard equipment.
Rental car agencies offer a range of benefits, such as roadside assistance, towing coverage and limited powertrain warranties.
Cons of buying rental cars
At the same, you don’t know how any particular car has been treated. Hard driving can wear out a car in ways beyond what the mileage might indicate, and there could be underlying problems.
Rental cars can rack up 20,000 or more miles per year, compared to the national average of about 13,000 miles. Mileage-based maintenance items could be required sooner rather than later.
Rental cars also tend to be lower or middle trim levels, so you might find fewer luxury options. For example, rental cars are more likely to have cloth seats rather than leather.
When is buying a rental car a good idea?
If you’re in the market for a used car, but you don’t like the hassle of a dealership, buying a used rental car may be a better experience, often including no-haggle pricing or rent-to-buy programs.
You need a lower-priced car
Used rental car prices tend to be lower because of the high mileage and fewer features. Often you can get a newer used car at a lower price than you would from a standard dealership.
You want a thorough vehicle history
Rental cars are usually serviced according to the manufacturer’s recommendations. Ask the rental car salesperson for a service history and a vehicle history report. Check to see if any recalls have been performed, as well.
You want to avoid added costs
At a standard dealership, negotiating the sales price is only the beginning. You’ll be asked to buy extended service contracts, paint and wheel protection, window tints and other add-ons that pad the final price. The used car contract may also include additional dealer fees slid into the deal.
Car rental sales tend to avoid these hidden add-ons, although they will offer extended warranties and other protection options.
Where to buy a rental car
Enterprise sells used cars, as do Avis, Hertz and other car rental companies, usually in larger cities where there is a lot of rental activity. You can search inventories online or go to the lot to look for the car you want.
When is it bad to buy a rental car?
Of course, sometimes it’s not such a good idea to buy a used rental car. Maybe you’re worried about mileage or future maintenance and repairs or you need a vehicle that rental companies don’t have.
You want a vehicle with low mileage
Rental cars can accumulate 20,000 or more miles per year. That means maintenance items like brakes and fluid changes scheduled for 80,000-100,000 miles can come due soon after buying the car.
You want a vehicle with little wear and tear
From dragging luggage across the seats to parking lot dings and dents, rental cars get a lot of rough use. You may prefer that new car smell and look — or at least a used car that hasn’t been driven by hundreds of people.
You want more options to choose from
Rental cars are typically lower to mid-level models. The seats are often cloth instead of leather, the sound system is basic instead of premium and you may not get a moonroof.
Still, driver assist features may be standard, along with adaptive cruise control, backup camera and lane-keeping assistant.
The inventory may be limited if you’re looking for a certain kind of vehicle or specific features.
How to buy a rental car
1. Choose a vehicle
Avis, Hertz and Enterprise have dealer-like outlets to sell rental cars that are taken out of service.
You can visit in person or view inventory online to select a car. You can test drive the car and, in some cases, even rent it for a trial period. For example, Hertz offers a three-day tryout.
Traditional used-car dealers may also offer used cars from rental car fleets, often known as program cars. But before you buy, take extra care to make sure the car is in good condition.
2. Get a preapproved loan offer
Before you go shopping, see if you can get preapproved for a loan offer. By applying for financing ahead of time, you can compare car loan offers and also see how they compare to any options the car rental dealer has.
Once you have loan terms, you can use our auto loan calculator to see what your payments will be like.
3. Get a vehicle history report
A vehicle history report (VHR) is a record of major accidents, previous sales and maintenance records. It should confirm that the car was a rental fleet vehicle and disclose any unfixed recalls.
The rental car company may offer a VHR for free, or you can buy one from CarFax, AutoCheck or the National Motor Vehicle Title Information System.
4. Test drive and get the car inspected
Take a test drive and be sure to get up to highway speeds at least once. You may feel or hear things at 65 mph that aren’t apparent at 35 mph.
Check out the steering and braking feel. The car should drive and stop in a straight line. If you suspect the car has problems, have an independent mechanic look it over.
5. Finalize the offer
The car rental outlets generally offer no-haggle pricing. What you see on the window is what you will pay — along with unavoidable fees like tax, tag and title.
You will usually be offered add-ons like an extended service contract and GAP insurance. Much of the car’s original bumper-to-bumper warranty may be used up, but agencies may offer a limited powertrain warranty for costly mechanical parts.
If it turns out you don’t like the car, you may be able to return it. Hertz offers a seven-day buy-back guarantee if you return the car within 250 miles.
Frequently asked questions
You should buy a rental car if you’re looking for a newer model vehicle at a low price. Rental cars are usually well maintained, but beware of mechanical problems from all that hard driving.
Rental car companies keep their cars for up to 80,000 miles, depending on model year and reliability. Usually, though, cars are taken out of service at around 50,000-60,000 miles.
A certified pre-owned car is a used car that a dealer has inspected and serviced to bring it up to the manufacturer’s standards. It usually comes with a manufacturer’s warranty. Some rental car agencies, like Hertz, offer a similar certification program, but not always.