5 Things you need to know before buying an ex-rental car

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kingr
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5 Things you need to know before buying an ex-rental car

Post by kingr »

If you're currently looking or have looked to buy a used car, you've probably toyed with the idea of buying an ex-rental vehicle. The price is almost always below prevailing market prices, and rental companies keep a high standard of maintenance on their fleet. However, you'll probably have flashbacks to the last time you drove a rental when you slapped the steering wheel and thought, "Damn, nothing revs like a rental."How many drivers have sat in that seat and turned to their friends and said," Don't worry, it's a rental.', after taking a 90-degree hairpin turn at 80km/h? High mileage and resale value are also some concerns when it comes to buying an ex-rental car, but the price and the reassurance that the rental car has had the required maintenance care may place higher on your list of priorities.

Here are five things you should know if you're looking into buying an ex-rental, used car.

1) The Price Tag:

Ex-rental cars will almost always be priced well-below prevailing market prices for your particular used-car model.

Why?

The large rental companies like Avis, Thrifty and Europcar, get a sweet bulk discount on their cars due to the sheer volume required to operate, maintain and update their fleets. Avis and its subsidiaries operate in 5,000 locations across 165 countries. Their top of the range Luxury Chauffeur option has a dedicated fleet of 2,200 cars in South Africa alone. Naturally, as rental companies start updating their vehicles, the need to get rid of stock quickly and an initial low cost-price will translate to a lower price tag for you as the buyer.

Gregg Nierenberg, Vice President of Fleet Services at Avis Budget Group, stated, "We're not looking to make a ton of money on our used cars."

However, judging by the fact of how much money Avis, Enterprise and Hertz have invested in their virtual used-car markets within their websites, I don't think that's the case. The profit margins may be small, but there's undoubtedly profit to be had. Rental companies have acknowledged their advantageous market position within the used-car segment and are fully utilizing it. Consumers can now go onto Avis or Hertz and easily sort through used rental cars in their area and test drive the car for 3-days, with a rental fee upfront. Avis and Hertz are offering financing options, the balance of factory warranty, full accident history, a 30-day exchange problem - you name it. The amount of time and investment to offer a fully comprehensive service for buyers looking for used-cars wouldn't be there if a "ton of money" couldn't be made. Nevertheless, this provides an attractive option for would-be used-car buyers as ex-rental cars are almost always cheaper.

A 2018 Polo 1.0 TSI Trendline, with service and warranty plan attached and +-21 000km on the clock advertised on Avis is priced at R203,000 . In some cases, compared to other used-car dealerships with identical models, almost R20,000 cheaper.

2) Good maintenance

Despite the inevitable fact that rental cars will take a pounding from multiple drivers and multiple driving styles, rental companies keep their fleet in top condition. Reputable rental companies adhere to strict maintenance intervals and usually have an in-house team of qualified mechanics or outsource maintenance to credible dealerships. Avis and other big names in the rental business also provide full accident and service history - a massive plus when looking in the used-car market. Additionally, the majority of cars on offer are still under the manufacturer's warranty as they are usually only 1 to 2 years old.

However, some consumers have started to raise issues on multiple forums with dealerships that have either sold ex-rental cars with dodgy service books or sold used cars that were ex-rentals without telling the buyer. These cases are rare, but the only way of knowing for sure is by doing a VIN check.

3) High Mileage and Bad Driving:

One of the drawbacks of buying an ex-rental car is the high mileage and a higher degree of wear and tear as a consequence. On several occasions that I have rented a car, I've always noticed general wear and tear. A cigarette burn here, stitching coming apart there, multiple scratches on the bodywork or zero treads on the wheels. Rental cars will usually show more signs of hard-driving due to the number of drivers and driving styles.

Which isn't a surprise, since drivers treat rental cars... well, like rentals.

However, it's in the best interest of rental companies to keep their fleet up to standard, and you can at least be reassured that ex-rental cars are clean and undergo strict quality and roadworthiness tests. Also, while ex-rental cars will generally have a higher amount of mileage, you can find some used cars with 10,000km on the clock and less.

4) Resale Value

While ex-rental cars do cost you less upfront, their resale value down the road is incredibly low. If you're looking to get a decent return from your used ex-rental, you will be disappointed.

The elements that dissuaded you in the first place, like high mileage, multiple drivers and general condition, will be felt doubly by buyers. The warranty and service plan will have likely expired. Add to that, the fact that the rental companies saturate the market with identical vehicles means that demand will probably be lacklustre. You can attempt to [urlhttps://www.wheelindex.co.za/blog/7-ways-to-add ... etkK7qYpwG]add value to your car[/url] personally, but you still won't get the return you expect.

5) Modern, but Few Options

One of the benefits of looking at ex-rental used-cars is that they are generally modern cars, not being older than three years old. For example, the Avis pre-owned Ford stock doesn't go back later than the 2016 Ford Figo 1.0. Finding a recent model at an affordable price is challenging, and an ex-rental is certainly attractive.

The trade-off with modern ex-rental cars is that options are minimal. Model variants are limited to standard trim levels and engine options. Rental companies offer rental cars that fulfill the general need of the consumer. For instance, Avis's cheapest option for renting a car is the “Group A Mini”. A very standard, entry-level small budget hatchback in which Avis has opted for the Kia Picanto and some cases the Chevrolet Spark. Similarly in more expensive options, Avis opts for VW Polos and Toyota Corollas. In their luxury options, they offer BMW 318i’s and Audi A3’s. The options are not only limited to the models, but the variants and trim levels within those models are also limited.

Tip: Regardless of whether you're buying a used car that was previously a rental or not, always conduct a https://www.wheelindex.co.za/vin-number-checkVIN check[/color] to get the full information of the car - that includes accident and service history among other relevant information.

Summary:

The ex-rental used-car market is growing with large rental companies like Avis and Hertz investing in their comprehensive service offering for potential used-car buyers. Ultimately, when looking at the benefits and drawbacks of buying an ex-rental car, is weighing up your priorities. A low price tag and the history of proper maintenance versus high mileage and a history of previous drivers who think renting a car gives you an F1 license.

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