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Buying 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 better financial choices by providing you with interactive financial calculators and tools that provide original and independent content. This allows you to conduct research and analyze information for free - so that you can make financial decisions without trepidation. Bankrate has agreements with issuers including, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Profit The deals that are advertised on this website are provided by companies who pay us. This compensation may impact how and when products are featured on this site, including, for example, the order in which they may appear within the listing categories and other categories, unless prohibited by law for our mortgage or home equity products, as well as other home lending products. But this compensation does not influence the information we publish, or the reviews you see on this site. We do not contain the universe of companies or financial deals that might be accessible to you. SHARE: BraunS/Getty Images
3 min read . Published March 02, 2023
Writer: Rebecca Betterton Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers in navigating the details of borrowing money to purchase cars. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers gain the confidence to take control of their finances through providing clear, well-researched information that breaks down otherwise complicated subjects into digestible pieces. The Bankrate promises
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At Bankrate we are committed to helping you make better financial decisions. While we adhere to strict journalistic integrity ,
This post could contain the mention of products made by our partners. Here's an explanation for how we make money . The Bankrate promise
Founded in 1976, Bankrate has a proven track experience of helping customers make informed financial decisions.
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who ensure everything we publish ensures that everything we publish is accurate, objective and reliable. Our loans journalists and editors are focused on the points consumers care about the most -- the various kinds of loans available as well as the best rates, the top lenders, ways to repay debt, and more -- so you'll be able to feel secure when investing your money. Integrity in editing
Bankrate adheres to a strict code of conduct standard of conduct, which means you can be confident that we'll put your needs first. Our award-winning editors, reporters and editors create honest and accurate content that will help you make the right financial choices. Key Principles We appreciate your trust. Our goal is to offer readers reliable and honest information. We have established editorial standards to ensure that this happens. Our editors and reporters rigorously fact-check editorial content to ensure that what you read is true. We keep a barrier with our advertising partners and the editorial team. Our editorial team does not receive compensation directly from our advertisers. Editorial Independence Bankrate's editorial team writes on behalf of YOU - the reader. Our aim is to provide you the most accurate advice to aid you in making informed financial decisions for your personal finances. We adhere to strict guidelines in order for ensuring that editorial content isn't affected by advertisements. Our editorial team receives no directly from advertisers, and our content is thoroughly checked for accuracy to ensure its truthfulness. So when you read an article or reviewing it is safe to know that you're receiving reliable and reliable information. How we make money
There are money-related questions. Bankrate has answers. Our experts have helped you understand your money for more than four years. We continually strive to provide consumers with the expert guidance and the tools necessary to succeed throughout life's financial journey. Bankrate adheres to a strict code of conduct , so you can trust that our content is honest and accurate. Our award-winning editors, reporters and editors provide honest and trustworthy content to help you make the best financial choices. The content we create by our editorial staff is factual, objective and uninfluenced from our advertising. We're honest about how we are able to bring quality content, competitive rates and useful tools to you , by describing how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for the promotion of sponsored goods and, services, or by you clicking on specific links on our site. So, this compensation can impact how, where and when products appear in listing categories, except where it is prohibited by law for our mortgage, home equity and other home lending products. Other factors, like our own proprietary website rules and whether or not a product is available in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. The majority of drivers use the rental car for trips or vacations -in some cases, they can also be a means to getting an automobile of their own. While rental cars are owned by a number of drivers, they also typically come with extensive maintenance records and cost-effective. However, before you leave the lot with one of these vehicles, there are a few aspects to take into consideration. What is the best way to purchase an automobile rental Just like would you buy any other used or new car, renting a vehicle will require some research prior to the time. Budget Know how much you can afford and what financing options will best suit your budget. Because rental cars are considered used vehicles, there are plenty of financing options available. Rates sat at an average 10.26 percent in the fourth quarter of 2022. 10.26 percent during the 4th quarter in 2022 according to figures from . However, keep in mind that it's more than the amount you see advertised online. Visit websites such as Edmunds or Kelley Blue Book (KBB). Both provide breakdowns of anticipated maintenance and repair expenses for a range of cars. Find a car to compare The best sources for looking into rental cars available for sale are Enterprise, Avis and Hertz. Simply go to their websites and check out what is available in your region. Also, Edmunds and KBB can be a good guide. They can provide you with average prices in your area for the cars you're interested in. This way, you can be certain that the used car dealership offers a great deal. And because rental cars have higher damage, check to see the possibility of a lower price than the average to make up for potentially more expensive maintenance costs in the future. When you've got an automobile in mind, apply for preapproved financing. Although many rental agencies will provide financing options of their own, it's always smart to so you ensure you get the best deal. It also lets you make better budgeting decisions. Once you know how much you can afford to buy -- and also know your monthly payment is set, you can search for just the right fit to your budget. Check the car Try a test drive, and view the car in person if possible find the vehicle history report. It will provide you with details about any damages or prior ownership, as well as information about the car's hood. Since rental vehicles are used by lots of drivers, they accumulate quite a few miles. The odometer is likely to be high even with relatively new vehicles, so prior to buying. Along with the vehicle history report, this will give you an accurate picture of the intensity with which the vehicle has been driven during its rental period. Also, ask if the vehicle comes with a manufacturer's warranty and you might have the option of getting additional security from the rental company. An may be a good option even if the vehicle is covered under the manufacturer's warranty. Extended warranties cover more common maintenance and repairs. However, they come at a expense, so make sure you know what it covers and if it is worth it before signing up. Are rental cars good to buy? Similar to most things when it comes to buying a car it is important to consider the financial implications and fit for your lifestyle. Although rental cars are a bit of a bad rap, there is no guarantee every used car you buy isn't abused similarly unless you are familiar with its history. Benefits of purchasing a rental car Rental cars may have a bad name however there are several motives why they might be the right choice for you. Warranty: Most rental cars include a guarantee of about one year -even those which no longer have the manufacturer's original warranty. Buy-back policies: Some rental car rental companies might offer the option of buying back your car when you make a change of mind within a few days of the purchase. Clean vehicles The company that rents the car should have had the car clean and maintained after each driver. So even with more wear and tear on the vehicle you're considering purchasing the vehicle has been examined higher than the typical used vehicle. These features can provide some added assurance that could not be available when purchasing used elsewhere. Cons of buying a rental car While there are a few positives, there are also disadvantages of renting a car. The high mileage of frequent drivers and long trips may outweigh frequent maintenance. Sky-high mileage accrued by renters could lead to more issues or a less long life for your car. Limitations on options: In addition to this, renting a car is a lot more restricted in stock available to choose from. If the rental car company does not have the vehicle you want in stock, you're out of the woods. Basic features: The cars available do not typically come with all that bells and whistles that drivers seek. Many are basic models that do not come with the luxurious features that other used cars come with. The main thing to remember is that if you settle on a used rental vehicle, make sure you do your research on typical vehicle prices, conduct a history report and check out the fine print at rental car websites- many offer special deals or buy-back options. And, as with any other used vehicle, having the car inspected with an expert mechanic can give you extra security. Learn more
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This article is written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the ins and outs of securely taking out loans to purchase cars. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the end of 2021. They are dedicated to helping readers gain the confidence to control their finances with precise, well-researched and reliable information that breaks down otherwise complicated topics into digestible pieces.
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