If you are thinking about buying a used car or buying a brand new vehicle, you may want to consider a compromise and buy a used rental car. Used rental cars are typically less than a year old and usually have low mileage. The same car purchased, when purchased new, costs thousands of dollars more. On the other hand, used rental cars have quite a bit of wear-and-tear (scratches, dings, dents, etc.) because renters tend to abuse them more. If you don't mind a little more wear, you could save thousands of dollars just by buying a used rental car. There are a few questions you should ask yourself before deciding if you should buy a used rental car.
1) How many years do think you will drive it?
If your answer is only a few years, think about buying a used rental car. If your answer is five to ten years, you should take into consideration that privately-owned used cars have less wear in general than used rental cars. Consider this before buying one.
2) Do cosmetic problems bother you very much?
Cosmetic problems include things like scratches, dings, dents, stains, and smells. Most of the time, used rental cars have more cosmetic problems than privately-owned and, of course, new cars. If cosmetic problems really bother you, then don't purchase a used rental car.
3) Is your main concern just getting from here to there?
Despite their cosmetic defects, used rental cars have a benefit over privately owned used cars. They oftentimes are sold with factory-backed "certified used programs." This provides a warranty with upgraded coverage, as well as lower financing rates that are typically offered when financing new vehicles.
4) Are you credit-challenged?
If your credit is less than perfect, a used rental car is a good way to buy a fairly new car while keeping your monthly payments down. Used rental cars often qualify for factory backed "certified used" programs, which usually have aggressive financing available for people with bad credit.
5) Are maintenance and mechanical problems are concern of yours? They should be.
Let's compare the maintenance of privately owned used cars to that of used rental cars. It is better. What is the reason? Manufacturers lease their cars to rental car companies rather than make them buy them. Along with this lease, they require from them routine maintenance on their cars and documentation to prove it. Rental car companies usually choose to do the routine maintenance since their cars are under warranty. This means that used rental cars are generally better maintained and have less mechanical problems than privately-owned used cars.
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