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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 goal is to help you make better financial choices by offering interactive tools and financial calculators as well as publishing original and objective content, by enabling you to conduct research and compare data without cost, so that you can make your financial decisions with confidence. 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 offers that appear on this website are provided by companies who pay us. This compensation may impact how and where products appear on this site, including such things as the sequence in which they be listed within the categories of listing, except where prohibited by law. Our mortgage or home equity products, as well as other home loan products. This compensation, however, does have no impact on the information we publish, or the reviews that appear on this website. We do not contain the entire universe of businesses or financial offers that may be available to you. Share: BraunS/Getty Images
3 min read Published March 02, 2023
Authored by Rebecca Betterton 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 borrowing money to buy an automobile. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate from late 2021. They are dedicated to helping readers gain the confidence to take control of their finances through providing concise, well-researched and detailed information that breaks down complex topics into manageable bites. The Bankrate guarantee
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At Bankrate we are committed to helping you make better financial choices. While we are committed to strict editorial integrity ,
This article may include some references to products offered by our partners. Here's a brief explanation of how we earn money . The Bankrate promise
Founded in 1976, Bankrate has a long track experience of helping customers make wise financial decisions.
We've maintained our reputation for more than four decades through making financial decisions easy to understand
process, and giving people confidence about what actions to follow next. Bankrate has a very strict ,
so you can trust that we'll put your interests first. Our content is written in the hands of and edited by ,
who ensure everything we publish will ensure that our content is reliable, honest and trustworthy. Our loans journalists and editors are focused on the areas that consumers are concerned about the most -- the various types of loans available, the best rates, the best lenders, how to pay off debt and more -- so you'll feel safe investing your money. Integrity of the editing
Bankrate has a strict policy and rigorous policy, so you can rest assured that we're putting your interests first. Our award-winning editors and reporters provide honest and trustworthy content to assist you in making the right financial decisions. Key Principles We appreciate your trust. Our goal is to offer readers truthful and impartial information. We have standards for editorial content in place to ensure this happens. Our reporters and editors thoroughly check the accuracy of editorial content to ensure that the information you're reading is accurate. We have a strict separation with our advertising partners and the editorial team. Our editorial team doesn't receive any direct payment by our advertising partners. Editorial Independence Bankrate's editorial staff writes in the name of YOU as the reader. Our aim is to provide you the best advice that will help you make smart personal financial decisions. We adhere to strict guidelines for ensuring that editorial content isn't influenced by advertisers. Our editorial team is not paid direct compensation from advertisers, and all of our content is fact-checked to ensure accuracy. So when you read an article or reviewing you can be sure that you're getting credible and reliable information. What we do to earn money
There are money-related questions. Bankrate has the answers. Our experts have helped you understand your money for over four decades. We continually strive to give our customers the right advice and tools needed to make it through life's financial journey. Bankrate adheres to a strict code of conduct , so you can trust that our content is truthful and accurate. Our award-winning editors and journalists produce honest and reliable content to help you make the best financial choices. Our content produced by our editorial staff is objective, factual and is not influenced by our advertisers. We're honest about the ways we're in a position to provide quality content, competitive rates, and useful tools for our customers by describing how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for the placement of sponsored products and services, or when you click on certain hyperlinks on our website. This compensation could affect the way, location and when the products are listed within categories, except where prohibited by law for our mortgage home equity, mortgage and other home lending products. Other factors, such as our own rules for our website and whether or not a product is available in your region or within your self-selected credit score range can also impact how and where products appear on this website. Although we try to offer the most diverse selection of products, Bankrate does not include details about each credit or financial products or services. A majority of people only use a rental car on trips or vacations -and for a lot of people it is also a means to getting an automobile of their own. Although rental vehicles are used by a number of drivers, they also have extensive maintenance records as well as a low price tag. But before you drive off the lot with one of these vehicles there are a few things to consider. How to buy the rental car As when you purchase any other new or used vehicle, buying a rental will require some research ahead of time. Budget Understand how much and what financing options are most suitable for your budget. Since rental cars are considered used vehicles, there are plenty of financing options available. Rates sat at an average at 10.26 percent in the fourth quarter of 2022 according to figures from . However, keep in mind that the is much more than just the price that you see advertised online. Visit websites such as Edmunds or Kelley Blue Book (KBB). Both offer breakdowns of the expected repair and maintenance expenses for a range of cars. Find a car to compare The best sources to look into rental vehicles for sale can be found at Enterprise, Avis and Hertz. Go to their websites and see what is available in your local area. Also, Edmunds and KBB can be a good guide. They will show you the an average price in your area for the cars you're looking at. This way, you can be certain that the used car company offers a great deal. And because rental cars have greater use and wear, check to see if you can go lower than the average to cover more expensive maintenance costs later on. Prequalify Once you have a vehicle in mind, apply for pre-approved financing. Although many rental companies will offer financing options of their own, it is always smart to so you ensure you get the most competitive price. It also lets you budget more accurately. Once you know how much you can afford to buy -- and know your monthly payment is set, you can search for just the right fit for your budget. Check the car Test drive it and view the car in person if possible, then seek out the vehicle history report. This report will give you an insight into any damage incurred or prior ownership, as well as information about the car's engine. Since rental vehicles are used by a lot of drivers, they accumulate some miles. The odometer is likely to be high despite relatively new vehicles, therefore, when you purchase. In addition to the car's history report, this will give you a full idea of the amount of time it was driven during the time it was rented. Also make sure you inquire about the warranty comes with the manufacturer's warranty, and you may be able to get additional security from the rental company. It could be a good option even if the vehicle is covered by a manufacturer warranty. Extended warranties are for more routine repairs and maintenance needs. However, they come at a cost, so be sure you are aware of what they cover and if it is worth it prior to signing up. Are rental cars a good thing to purchase? Like many things related to buying a car it is important to consider the financial implications and fit for your lifestyle. Rental cars may have a bit of a bad name however, it is not a guarantee that the car you purchase isn't abused similarly unless you personally know its background. Pros of buying a rental car. Rental cars can have a bad reputation, but there are several motives why they might be an ideal fit for you. Warranties: Rental vehicles typically include a guarantee of about one year -even those that no longer qualify for the original manufacturer's warranty. Buy-back policy: Rental car companies may have the option of buying back your car when you make a change of mind within a few days of the purchase. Well-maintained vehicles The car rental company must have ensured that the car is clean and maintained after each driver. Even with the more wear and tear on your potential car it's been inspected more than the typical used vehicle. These kinds of features could provide added peace of mind that might not be found in used vehicles elsewhere. Pros and cons of renting a car Although there are quite a few benefits, there's disadvantages of renting a car. The high mileage of frequent drivers and lengthy journeys could be more costly than regular maintenance. Renters who have a high mileage could potentially mean more problems or a shorter life span for your vehicle. Limitations on options: In addition to this, purchasing a rental is a lot more restricted in selection of vehicles available for purchase. If the rental car provider doesn't have the car that you are looking for in stock, you're out of the woods. Basic specifications: The vehicles that are available don't come with all of the features that drivers seek. Most are simple models that will not have the luxury features other used vehicles might include. The key point to consider is that if you decide to go with a used rental car, you should do your homework on the typical pricing, run a vehicle history report and check out the fine print at websites for rental vehicles -- many offer special deals or buy-back offers. And, as with any used car, getting the vehicle signed off on through an experienced mechanic could give you extra security. Find out more
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The article was written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers with the ways and pitfalls of borrowing money to purchase cars. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are passionate about helping readers gain confidence to take control of their finances through providing precise, well-researched and reliable facts that break down complicated subjects into bite-sized pieces.
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