Pros and cons of buying an ex-rental car
Former rental cars can offer good value for used car buyers, but there are pitfalls too.
While new car sales have plunged during the COVID crisis, interest in used cars is on the rise as commuters eye alternatives to public transport in a pandemic.
Online classifieds site carsales.com.au recorded a 16 per cent year-on-year jump in searches for used cars in July and, unsurprisingly, the surge in demand has been accompanied by a surge in prices. Meanwhile, Moody’s Analytics reported a 25 per cent year-on-year increase in used car prices during August.
There’s much to consider when buying a used car, and price is just one aspect. But those looking for value for money might consider a former rental car.
Car-rental companies upgrade their fleets regularly to ensure they can offer customers recent models in good condition. That means they frequently need to offload a number of their older cars at once and will price them keenly to ensure a quick sale.
These cars tend to be the most popular SUV and passenger-car models on the market, so if you’re after something like a Kia Cerato or Toyota Corolla, it’s worth considering an ex-rental. You can find them on the usual car-sales websites, at vehicle auctions, or some rental companies sell them directly to the public.
But while ex-rentals can be excellent value, there are also some disadvantages, so it’s worth weighing up the pros and cons.