Should I buy a used car from a car rental agency?

Short answer: Yes. Long answer: Yes, but you need to be mindful of a few factors. We will guide you on what factors might contribute to your decision and how be sure whether to invest in a used car or not. Let’s go over the details one by one.


The risk vs return paradigm

Rental cars are cheaper, no doubt about that. However, a used car by default means that it is not as good as new. It may not have a fault but you might not know that until it’s too late. Secondly, there has been at least one driver so there have been some adjustments of the car parts to the driver’s hands. So let’s consider a used car as at least one point lower than a new car. The good part here is that they also come cheaper than a new car. The catch for you then is to value the condition of the car against the listed price, making sure that you are getting a good deal.

Rental company vs car dealerships

It is important to understand why rental companies sell cars at all. The basic operational model of rental cars is to keep their fleet newer and proper. This means that need to constantly update their cars which in turn means that they have to keep getting rid of some of their vehicles as well. This does not mean to say that the cars they are willing to sell are sub standard. It just means that they need funds to buy better and newer models. Some of the rental agencies hold auctions to sell their cats while others go through dealerships. Some even sell directly to customers. These options say nothing about the quality of the cars. These are just different ways you can buy from a rental company. In fact even if you go to a car dealership you might get a car that was once a rental. So don’t worry about choosing a car from a rental company. Just read on for the things that you do need to be careful about.

Maintenance mania

Let’s go on the positives first. The cars in a rental company go through more wear and tear because they are used by many drivers for several trips. But at the same time they are better well maintained as well. This is a tricky choice – some cars are better off if they are kept on the roads, their oils changed frequently, and their wheels kept in motion, while others might be in a better condition if they are driven less. The type of drives and roads also count for the quality of the cars. However, as a general rule people usually take more care of cars that are not theirs. This means that it is likely that rental cars will be in good condition.

The three biggest players in the car industry are Enterprise Holdings, Avis Budget Group, and Hertz Global Holdings. All three have a reputation of customer service and satisfaction and are also known for cars in great condition. These companies also sell their cars, which means that technically any other rental company selling cars have these three parent giants of rental companies as competitors and an inherent pressure to keep up in quality and service.

Bargaining bets

Rental companies have less interest in making profits than they are in clearing their fleet for better cars. This means that they offer lower prices and are open for bargaining. The prices are lower than the retail prices anyway and they also have guide books for you to examine the cars.

Mileage menu

Now on to the potential negatives. The mileage is the biggest concern for car buyers and there is no doubt that a rental car will almost always have much more miles on the odometer than a non-rental used car of the same make, model, and age. It is up to you to decide what you decide but from our perspective mileage is one of the many factors deciding on the quality of the car. We do not recommend making a purchase that you are not happy with but we suggest that you take into account the full portfolio of decision making factors than solely the mileage.

Variety and versatility

Where on one hand you have better conditions and lower prices, you also have a much limited inventory when it comes to rental cars for sale. Naturally the best ones are kept by the companies so you can perhaps get slightly older models at best. This is to say that if you are looking for an upgrade on your car, rental companies might not be your best choice. However, the inventories are updated constantly with these companies so you can keep checking back and you might find the perfect ride with rental companies too.

Final note

Now that you know the good and the bad, the final step is to consider the process of purchase itself. The top three companies, as well as many others, offer test drives. While some do it for a couple of days, others at least have a few hours or minutes on their offer packages. You might have to pay rent for the test drive time but if you buy the car, that rent is adjusted in the purchase price. Some companies also allow for returns and refunds which mean that except the fee that you have to pay from the refunded amount is the price you de facto pay for a longer test drive.

The last nuggets from us would be to take opinion of a skilled mechanic while purchasing a car. Unless you are a super car enthusiast with broad knowledge of all cars – vintage and latest, you will be better off with the expertise of a professional with you. Looking for maintenance records and rental company’s service schedules will also benefit you in your decision making process. Just be true to your choices and be mindful of factors mentioned in this article, and happy car shopping!