Well, I just found out about one of the best-kept secrets in the auto industry: rental companies typically sell new cars after just 10-40,000 miles at a steep discount. How steep? The 2014 sports car I'm looking at buying has under 20k miles but I negotiated it down to $7k under private party KBB.
Frankly, I'm torn. The best deal I could find from a dealer for a similar car is at least $5k more before fees. Unfortunately, since it is a sports car I'm worried that more than a few people drove it hard... but that could be the case with any previous owner. I don't expect to keep the car for more than three years, and I will be checking the warranty status since if warranty is still active I would be covered under a manufacturer's bumper-to-bumper warranty until the end of 2016, then a powertrain warranty for a few years following that. Assuming this particular manufacturer's warranty does carry over, my main concern is reselling the vehicle. Estimates I've heard are $2k-$3k under KBB for a former rental car but if it takes a larger hit than that, then it is pointless for me to save the money now. It is a popular car that typically sells quickly used on Craigslist so I would assume some people may not factor the rental status into their cost when resold.
Interestingly enough, the same car purchased from Hertz vs the even bigger rental company this one was used for would cost roughly $5k more ("no-haggle") and include almost triple the miles. So at least if I do decide to be crazy enough to purchase a rental vehicle then I am getting a deal.
Yes, rental cars are going to be abused in more than a few ways and frankly I would never consider any other type of rental (a car is just about the only used item I would purchase -- I am very OCD with everything else). Nonetheless, most are well-maintained and all the people that I found on forums who purchased this particular car as a former rental are running strong for years. Perhaps I can even extend the warranty to offset reliability concerns... extending the manufacturer warranty for much longer than I will even own the car would cost under $1,000 with a $50 deductible. If eligible for this (calling when they're open with the VIN), that definitely makes it more appealing. In fact, ~ $700 for a bumper-to-bumper manufacturer until 2020 makes this a great deal and would work very nicely when resold to get close to full value. This alone is making me consider going for it.
Opinions? Have any risk-taking drivers here taken the plunge with a low-mileage rental car?
Frankly, I'm torn. The best deal I could find from a dealer for a similar car is at least $5k more before fees. Unfortunately, since it is a sports car I'm worried that more than a few people drove it hard... but that could be the case with any previous owner. I don't expect to keep the car for more than three years, and I will be checking the warranty status since if warranty is still active I would be covered under a manufacturer's bumper-to-bumper warranty until the end of 2016, then a powertrain warranty for a few years following that. Assuming this particular manufacturer's warranty does carry over, my main concern is reselling the vehicle. Estimates I've heard are $2k-$3k under KBB for a former rental car but if it takes a larger hit than that, then it is pointless for me to save the money now. It is a popular car that typically sells quickly used on Craigslist so I would assume some people may not factor the rental status into their cost when resold.
Interestingly enough, the same car purchased from Hertz vs the even bigger rental company this one was used for would cost roughly $5k more ("no-haggle") and include almost triple the miles. So at least if I do decide to be crazy enough to purchase a rental vehicle then I am getting a deal.
Yes, rental cars are going to be abused in more than a few ways and frankly I would never consider any other type of rental (a car is just about the only used item I would purchase -- I am very OCD with everything else). Nonetheless, most are well-maintained and all the people that I found on forums who purchased this particular car as a former rental are running strong for years. Perhaps I can even extend the warranty to offset reliability concerns... extending the manufacturer warranty for much longer than I will even own the car would cost under $1,000 with a $50 deductible. If eligible for this (calling when they're open with the VIN), that definitely makes it more appealing. In fact, ~ $700 for a bumper-to-bumper manufacturer until 2020 makes this a great deal and would work very nicely when resold to get close to full value. This alone is making me consider going for it.
Opinions? Have any risk-taking drivers here taken the plunge with a low-mileage rental car?
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