Pros & Cons of Buying a Rental Car
You can find rental cars for sale at dealerships or rental car lots. All were primarily used for rental purposes, which might prove displeasing to some consumers. However, because of price differences and possible warranties offered with the purchase, you might consider a rental car for your next purchase. Weigh the considerable financial pros and cons before deciding if a retired rental car is right for you.
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Age and Mileage
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An obvious benefit of purchasing a rental car is its year. Rental cars are put up for sale when less than two years old, but are more commonly sold when they are one year old. Such vehicles prove hard to find on dealership lots because most people trade out of new cars around the three-year mark of ownership when equity and loan payoffs equal out. Despite the benefit of owning a newer vehicle, most rental cars are retired once out of the manufacturer's warranty.
Discounts
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The price for a rental car purchase is attractive at first glance. Although if you were to find the same vehicle traded in by its original owner, you'd likely pay a similar discounted price because of mileage penalties. A one-year old vehicle with more than 30,000 miles affects your future resale value and current sales price, as trade values are based on 12,000 miles per year. Rental vehicles are often significantly over common mileage. Check used car appraisal values to gauge true price discounts through websites such as Edmunds.com, NADAGuides.com or KBB.com.
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Warranty
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Because you'll take ownership of a vehicle that many people have driven before you, it's beneficial to have a warranty in place. Extended warranties are available, but can be expensive. Consider whether the rental comes with a warranty or the price of purchasing one, which might cancel out the benefits of paying a lesser price if you have to pay for coverage.
Car Features
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Manufacturers supply rental car companies with special order vehicles. While rental car prices might prove attractive, study the vehicle's standard features before pursuing a deal using any appraisal website. You might be surprised to find that special-order rental vehicles do not come with features they are supposed to. As of December 2010, GM models come standard with OnStar as a safety feature that most insurance providers offer a discount for, but not when ordered by a rental car company. This is a disadvantage, because you may be paying for less of a car.
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