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Pros and cons of buying a used rental vehicle

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Pros and cons of buying a used rental vehicle

When we think of buying a car, our minds usually go into new and used. And while these are the most common categories, there are other options to choose from. One of these options includes buying used rental cars. Rental cars are kept in fantastic condition by the rental companies, but there can also be some downsides to purchasing one if you do not know how to choose wisely.

When you are applying for car financing, you will have many car options to choose from. Some car finance providers have preferred dealers which they will ask you to use while others will allow you to look at used rental cars. If this is an option you would like to explore, read on below for the advantages and disadvantages of buying a used rental vehicle.

 

The advantages

 

You can find newer models

Car rental companies will usually offer newer models to their clients, which means that you will be able to find a newer model from their selection. When you apply for vehicle finance, use a vehicle finance calculator to see if you are able to afford one of these new and exciting models.

The safety features and interior will also be more up-to-date, meaning that you will be paying a lower amount for a fairly modern car. For example, you might be able to find a 2016 model of a car you have had your eye on. These cars are also kept in good condition, which means that their value has not depreciated as much as other used cars.

 

There will still be a warranty

One of the other major benefits of used rental cars is that there will still be a warranty on it from the rental company. This will make your monthly repayments significantly lower, as you will not have to negotiate one with the dealer.

Another added advantage is that some rental cars still have the manufacturer’s warranty, but this will be subject to confirmation with the manufacturer that the car has not been damaged in any way that could break the warranty. A car that is still under warranty will cost you much less in the long run, especially with repairs and maintenance. When you apply for finance, ask the dealer about the warranty of the car before finalising any transactions.

 

It is kept in good condition

Rental cars might not be kept clean by those renting them, but the rental company takes pride in ensuring that their vehicles are in tip-top condition. Not only are they thoroughly cleaned before a client uses them, these cars are also maintained and serviced by professional mechanics.

This means that they will arrive at the dealership in the best condition possible. You will not have to worry about what condition the engine, brake pads, and suspension are in as they will have been repaired and replaced if need be. Rental car companies often follow strict maintenance and cleaning schedules to ensure that their cars look great and run smoothly.

 

The disadvantages

 

The mileage might be high

A rental car might have a higher mileage on it due to it being a rental vehicle. This should not put you off of choosing one as an option, but it is important to note that a pre-owned vehicle might be a better choice if you drive long distances daily.

You will need to speak to the dealership or the car rental company itself about how the car was driven. If the mileage comes from the car being driven over bumpy roads and long distances, the chances are that the car will have some wear and tear. But, if the mileage is from the car being used as a business vehicle and only being driven in the city, then the wear and tear will not be as bad.

The resale value will be lower

Now, you might not feel that you need to think as far into the future as selling your new car, but it is an aspect to consider when looking for one. The resale value of a used rental car can be significantly lower than one of a pre-owned vehicle, meaning that you might not make back the money you spent on the car.

In order to recoup your loan amount when you resell your car, it might be a better idea to look at used or pre-owned vehicles instead. However, if you are going to be driving your car for more than three to five years, the resale value will not be a huge factor in your financing deals. Ask the dealership what they think the car will fetch in a few years and think about this number before the time of finalising your loan.

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