Are Rental Cars Good to Buy?

Mention that you're considering purchasing a former rental car and the response is predictable: You'd be crazy to buy one because, let's be honest, how do most of us drive when we rent cars? There's truth behind that sentiment, but it doesn't mean a used rental car can't provide solid, dependable transportation for well-informed buyers.

The life of a rental vehicle is a tough one: It's driven by many people and for more miles than average because it's being used every single day. After about a year of service, the rental company will typically pull the vehicle out of the fleet and sell it as a used car. In this "second life," a former rental vehicle can make for a compelling used car value — if you're willing to accept a few trade-offs.

The oft-cited abuse of rental cars might be true in a few cases, especially in sporty models. But there are other factors that offset that argument. Reputable rental companies maintain their cars well and closely follow the service schedules. And because the rental car agencies buy vehicles in volume and pay less up front, their resale prices can be lower.

Here are the pros and cons of buying a rental vehicle, along with a list of things to do before buying a rental.

The pros of buying a used rental car

Buying a used rental car can save you money
Rental companies purchase their vehicles in volume and at a discounted rate compared to retail customers. In turn, they are able to sell them at lower prices than a traditional dealership would. On average, the discounts could be 10% or more depending on the vehicle.

You'll get a newer vehicle for less money by buying a used rental car
It is not uncommon to find 1- to 2-year-old rental vehicles, which could potentially get you the latest body style or safety features. These vehicles would cost thousands more at a franchise dealership's used car lot.

Car rental agencies offer a convenient sale process
Avis, Enterprise and Hertz offer no-haggle pricing. Avis and Hertz also offer free two-hour test drives or a three-day "rent to buy" program, where you pay a daily rental fee (at a reduced rate, in the case of Hertz). The companies apply the rental fee toward the purchase price if you buy. To alleviate buyer's remorse, Enterprise and Hertz also have seven-day return policies.

Used rental cars are usually well maintained
Large rental agencies are diligent about maintaining their vehicles because any downtime due to poor vehicle care is money lost. All of a vehicle's scheduled maintenance is performed at the manufacturer-recommended intervals.

A used rental car likely comes with a limited warranty
Most major rental companies will give buyers a 12-month or 12,000-mile limited powertrain warranty. This coverage is more than you'd get at an independent used car lot, where most of the vehicles are sold as-is. That said, in either case, you will inherit any remaining balance on the vehicle's factory warranty, which might not be much if a rental car is nearing 36,000 miles.

The cons of buying a used rental car

A used rental car might have an uncertain history
It's difficult to determine how hard a rental car was driven. While some people might be careful with a rental, others may drive the vehicle more aggressively since it isn't theirs. The risk may be higher on sporty or luxury cars because people often splurge on them at the rental counter to enhance their temporary driving experience.

A used rental car is likely to have a lot of miles for its age
The average miles driven per year in the U.S. is about 14,000. But you'll easily find vehicles in a rental fleet with double or triple that number of miles.

Used rental cars may be out of warranty
Because of rental cars' propensity to rack up the miles, you might find that the vehicle is past its factory warranty coverage. Any repairs required will likely have to be paid out of pocket unless you opt for a private extended warranty.

Used rental cars are usually lightly optioned
Don't expect to see top-of-the-line vehicles with a ton of upscale options. Rental companies usually buy base or midtier models due to the lower price and simplicity of ordering, so luxury features and advanced safety equipment might be hard to find.

A list of key things to do before purchasing a rental car

Test-drive the car and listen for any unusual noises. Look for any signs of body damage and interior wear and tear. Check the interior for any wear on the seats or stains on the carpeting.

• Ask for a vehicle history report from the rental car company or buy one yourself.
• Check on recalls. Since June 2016, rental car companies have been required to fix any recalled cars in their fleets before renting them out. The vehicle history report should show whether there are any outstanding recalls, but it doesn't hurt to check yourself by running the vehicle identification number (VIN) through the National Highway Traffic Safety Administration's free recall site. If there turns out to be an outstanding recall, you can ask the rental company to get the car fixed or move on to another vehicle.
• Get a prepurchase inspection for added peace of mind. An inspection will reveal any hidden problems and let you make an informed choice about buying.

As long as you're aware of the pros and cons of buying a used rental car, you may find that big rental agencies offer well-maintained cars at reasonable prices. If you don't mind some wear and tear and aren't bothered by potentially high mileage, it's worth taking a look at what rental car lots have to offer the next time you're in need of a good used car. The streamlined sales process and lower prices may be enough to offset the downsides of high mileage and history of many drivers.