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06.04.2023Buying a rental car: What you need to know Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make smarter financial decisions by offering interactive financial calculators and tools as well as publishing original and objective content, by enabling you to conduct research and compare data at no cost — so you can make your financial decisions without trepidation. Bankrate has agreements with issuers, including but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this site are from companies that pay us. This compensation could affect how and when products are featured on this website, for example, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews appear on this website. We do not contain the universe of companies or financial offerings that could be available to you. SHARE: BraunS/Getty Images
3 min read . Published March 02, 2023
Written by Rebecca Betterton Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the details of borrowing money to purchase cars. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since the end of 2021. They are passionate about helping readers gain confidence to control their finances by providing precise, well-researched, and well-sourced information that breaks down complicated topics into bite-sized pieces. The Bankrate promises
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There are money-related questions. Bankrate can help. Our experts have helped you understand your money for more than four decades. We continually strive to provide consumers with the expert advice and the tools required to make it through life’s financial journey. Bankrate adheres to a strict code of conduct , so you can trust that our content is honest and reliable. Our award-winning editors and journalists produce honest and reliable content that will help you make the right financial decisions. Our content produced by our editorial staff is factual, objective and uninfluenced from our advertising. We’re transparent regarding how we’re capable of bringing high-quality content, competitive rates, and helpful tools to you , by describing how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated for the promotion of sponsored goods and services or through you clicking certain hyperlinks on our site. Therefore, this compensation may affect the way, location and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home loan products. Other elements, such as our own proprietary website rules and whether a product is available in your area or at your personal credit score can also impact the way and place products are listed on this site. While we strive to provide the most diverse selection of products, Bankrate does not include the details of every credit or financial item or product. A majority of people only use a rental car on vacations or time away -and for a lot of people it is also a means to getting the vehicle of their choice. While rental cars are owned by a number of drivers, they also have extensive maintenance records and an affordable price. However, before you can leave the lot in one of these cars there are some things to consider. What is the best way to purchase a rental car Just as if you were purchasing any other used or new car, renting a vehicle will require some research before the purchase date. Budget Know how much you can afford and the financing options that work best for your budget. Since rental cars are used vehicles, there’s a wide range of financing options available. The rates averaged at 10.26 percent in the fourth quarter of 2022 according to data from . However, keep in mind that the is much more than just the price you see advertised online. Check websites like Edmunds as well as Kelley Blue Book (KBB). Both have breakdowns of expected maintenance and repair costs for a variety of vehicles. Compare cars The best resources to look into rental vehicles for sale include Enterprise, Avis and Hertz. Simply go to their websites to see what is available in your region. Again, Edmunds and KBB can be a good guide. They can provide you with the average cost in your region for the cars you’re looking at. This way, you’ll be certain that the used car dealer is offering a good deal. And because rental cars have greater wear and tear, check to see whether you can get a price lower than average to offset more expensive maintenance costs in the future. When you’ve got an idea of a car you can apply for pre-approved financing. Although many rental companies will offer financing options of their own, it’s important to know you’re getting the best deal. Prequalifying also allows you to plan your budget more precisely. When you know what you’re able to spend — and also know the monthly cost of your purchase — you can shop for the ideal car for your budget. Inspect the vehicle Test drive it and view the car in person if possible, then seek out the car’s history report. This report will give you an information about any damages that have occurred, previous ownership and some specifics about what’s underneath the engine. Because rental cars see lots of drivers, they rack up quite a few miles. The odometer is likely to be high despite relatively new cars, so be sure to check prior to buying. Along with the history of the vehicle report, this gives you an accurate picture of the amount of time it was driven during its rental period. Make sure to check the warranty. Finally, ask if the vehicle comes with the manufacturer’s warranty, and you might have the option of getting additional security from the rental company. An may be a good idea even if your vehicle is covered under the manufacturer’s warranty. Extended warranties are for more routine maintenance and repairs. They are however an additional expense, so make sure that you understand what the warranty covers and if it is worth it before you sign up. Are rental cars a good thing to purchase? Similar to most things when it comes to purchasing a car, you should fully consider the financial consequences and suitability for your lifestyle. Although rental cars are a bit of a bad reputation but there’s no guarantee every used car you buy hasn’t been abused similarly unless you are familiar with its past. The advantages of renting a car Rental cars may have a bad reputation however, there are some reasons why they could be an ideal fit for you. Warranty: Most rental cars come with a warranty that lasts for about a yearincluding cars that are no longer covered by the original manufacturer’s warranty. Buy-back policies: Rental car chains may offer the option of buying back your car when you make a change of mind immediately after you have purchased. Well-maintained vehicles The car rental company should have had the car well-maintained and cleaned after every driver. So even with more wear and tear on your potential car it’s been checked up on much more than the average used vehicle. These features can provide some additional security that may not be found in used vehicles elsewhere. The disadvantages of renting a car While there are many advantages, there’s also negatives associated with using the rental vehicle. The high mileage of frequent drivers and lengthy trips could outweigh frequent maintenance. Sky-high mileage accrued by renters could mean more trouble or a less long life for your car. Limited options: Along with this, purchasing a rental means a much more limited inventory available to shop. If the rental company doesn’t have the car that you are looking for in stock You’re out of the woods. Basic specifications: The vehicles available do not typically come with all of the features drivers want. Many are basic models that do not come with the luxurious features that other used cars include. The key point to consider is that if you decide to go with a used rental car, you should do your own research about typical car prices, conduct a history report, and read the fine print at rental vehicle websites — many offer special deals or buy-back options. As with any other used vehicle, having the vehicle inspected through an experienced mechanic can give you extra peace of mind. Find out more
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The article was written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the details of borrowing money to buy cars. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since late 2021. They are dedicated to helping readers gain confidence to take control of their finances through providing clear, well-researched facts that break down otherwise complicated subjects into bite-sized pieces.
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