After a rental cars spends a few years in the fleet, the rental car company will sell it on the resale market in a process called remarketing. If you shopping for a used car, you may run into these vehicles. The manufacturer might resell it as a “program car,” the rental car company may sell it through its own affiliates, or used car dealers might purchase it at an auction to resell at their lots. However, there’s no fluorescent orange sticker on the window that states “former rental car” (except maybe in California).
Buying a Former Rental Car
When you purchase a rental car directly from a rental company, there’s a price clearly listed online. Expect well-documented service histories, and most major rental car companies that sell used cars add extended warranties in addition to any remaining manufacturer warranty. So while some renters may have driven less than responsibly, the buyer gets some protection when knowingly purchasing a former rental.
Because the cars were former rentals, they sold for below the Blue Book value of “single driver” used vehicles. Members of the AutoSlash team have had terrific experiences purchasing a used rental car and received unexpected discounts.
The rental car companies’ used car lots are consistently very clear on disclosing whether a vehicle was a rental or not. But many car buyer simply don’t want to purchase a vehicle that had been a rental, regardless of price, warranty, or other inclusions such as roadside protection.
Failure to Disclose Prior Rental History
In the United States, dealerships must use a mandatory sticker for used cars, called a Buyer’s Guide, mandated by the Federal Trade Commission (FTC). Most people focus in on whether a vehicle has a warranty but it’s worth looking at the sticker.
Buyer Beware
Previous ownership history and vehicle use (commercial fleet, taxi, or rental) might not be included in the Buyer’s Guide. Read the FTC’s documentation intended for consumers and compare it to the documentation intended for dealers. In fact, the Federal Trade Commission reminds consumers to be prudent, including guidance such that the potential buyer inspects a vehicle thoroughly. You should seek an independent inspection. You should checks for active recalls, since large rental car companies can’t get rid of vehicles under recall. And be sure to get an independent vehicle history report. You should also check CarFax to find out whether a vehicle was a former rental.
Get it in Writing
Finally, the FTC also suggests a consumer get any material assertion in writing from the dealer. That’s key because if a dealer’s assertion is not documented, there’s little possibility for recourse later.
Reputable dealerships with a vested interest will commit to answers. In my talks with Hertz about the Hertz Shelby GT 50th Anniversary Rent-A-Racers, the staff even told me where each car was previously stationed, helpful if you would prefer to avoid cars from the Salt Belt.
A car purchase is a major investment. Purchasing a used rental car is not for everyone, and every buyer should be vigilant.
