8 Compelling Reasons To Buy a Former Rental Car (Plus 7 Red Flags)

Buying a former rental car can be one of the smart car owner moves, but only if you perform the due diligence necessary to make a wise purchase.

Here are some potential pros and cons that consumers should consider if they are thinking about purchasing a rental car. We start with why these vehicles can be great purchases.

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Rental car companies frequently sell the aging cars in their fleet, but these vehicles typically are still only a few years old. Companies sell these relatively new cars because they want to offer customers the latest models.

Since these cars are still relatively new, they present car buyers with an excellent opportunity to score an awesome deal. Former rental cars offer affordable prices on vehicles that have up-to-date safety and technology features.

In fact, buyers may get a better deal on a 2-year-old rental car than they would when buying from a vehicle owner trying to sell them a similar car.

Since rental car companies want vehicles that will be popular with customers, their fleets often feature a variety of highly reliable, popular models.

From compact cars and sedans to SUVs, shoppers in the market for a used vehicle have plenty of options to choose from when buying a formal rental car.

Rental car companies also often choose vehicles for their fleets that are fuel-efficient and easy to maintain. These factors can make such vehicles wise choices for consumers.

Rental car companies go to great lengths to keep their vehicles in the best condition possible. After all, they can't make money off a rental vehicle that is constantly breaking down.

That's why a lot of rental companies hire top-notch in-house mechanics or send their cars to reputable dealerships to make sure the vehicles are properly maintained.

Rental car companies usually put a vehicle through a thorough inspection process to make sure the car is in top-notch condition before selling it.

The company wants to address potential issues with vehicles so buyers have peace of mind.Those inspections include every major vehicle component and system.

From the electrical system and transmission to the engine and brakes, rental car companies cover it all.

Rental companies often buy their vehicles from automakers at a high volume. That helps the rental company purchase the cars for a lower price.

When it is time to sell these vehicles, the rental company can sell them for cheaper because they bought them at a discounted rate. That can help you get ahead financially.

In addition to the manufacturer's original warranty, rental car companies may offer extended warranties that provide buyers with extra peace of mind when purchasing a former rental car.

These extended warranties might cover things like the cost of repairing a vehicle's transmission or engine. This could save the new owner from the financial sting of expensive repair bills.

Rental car companies are typically transparent when it comes to the history, usage and maintenance records of the cars they sell. This may include the history of a vehicle's accidents and repairs.

This transparency allows buyers to better understand the vehicle's true condition. It can also prevent buyers from potentially being blindsided by issues the car might have.

A lot of rental car companies offer prospective buyers no-haggle pricing. Simply put, the price shoppers see is the price they will pay.

So, you don't have to worry about negotiating to get a good deal, or worry that you will get pressured into making a quick decision.

Clearly, there are some benefits to buying a former rental car. However, there are also some drawbacks.

Car shoppers considering purchasing a former rental car should also consider the following cons.

Rental car companies typically keep a variety of popular vehicle makes and models in their fleets. However, options may be limited when it comes to some features, colors, and trim levels.

As a result, shoppers might not be able to find the combination of features they are looking for.

Former rental cars tend to have higher mileage than most used cars of the same age.

The average driver travels around 13,476 miles annually, and around 27,000 miles over two years, according to the Federal Highway Administration.

Meanwhile, it's not unusual for 2-year-old rental vehicles to rack up mileage at double those amounts — or more.

Rental cars are more likely to experience excessive wear and tear from hard driving. Unfortunately, renters may not drive as carefully in these vehicles as they do in their personal cars.

There is a greater chance of these vehicles being subjected to aggressive driving behaviors, like sharp cornering, sudden acceleration, and harsh braking.

Because rental cars rack up significantly more mileage than non-rental vehicles, they are far more likely to show signs of mechanical and cosmetic wear and tear.

These cars may have damages that owner-driven cars of a similar age are less likely to have.

Consumers can buy a former rental car for a lower price than a comparable used vehicle of the same age and model year sold through a dealership.

However, one tradeoff is that the vehicle will likely hold less of its value down the road.

Rental car companies typically purchase base models and lower trim levels from automakers, meaning the vehicles in their fleets might not come with customization options.

Buyers might be out of luck if they are looking for a former rental car that comes with heated seats, a top-of-the-line audio system, and a sunroof.

Although some rental vehicles are available with extended warranties, there are also quite a few rental cars that do not come with them.

This is a potentially significant issue because consumers might be saddled with unexpected repair costs due to high mileage, hard-driven rental vehicles with wear-and-tear issues, or hidden damage that was not identified during the rental company's inspection.

As with any vehicle purchase, buying a former rental car can be a terrific — or terrible — decision. The key to avoiding a surprising financial mistake is to do your homework.

So, before you plunk down your hard-earned cash, make sure you are getting a vehicle that is mechanically sound and that is the right fit for your driving needs.