Car Buyers Could Turn To Rental Outlets For Higher Savings
Cars sold from rental fleets consistently offer greater savings to potential buyers
A recent study conducted by iSeeCars found that car rental businesses consistently sell vehicles at lower prices than traditional or virual dealerships.
Car prices have risen at dealerships in 2020 due to an increase in demand, thus causing a limited inventory. The study analyzed over 8.5 million used car sales across dealerships and found that rental car companies provide the greatest savings, while dealerships typically price their vehicles above market value. Rental car dealers sold cars $303 below market value on average (or 1.6%).
Car rentals typically buy their cars in high volume at a discounted rate. Due to this, they can sell vehicles for less to consumers. Their vehicles are priced to sell in order to move inventory quickly and make room in their fleet.
Additionally, rental outlets are likely to discount their vehicles to sell in order to combat financial challenges brought on by Covid-19.
More benefits other than lower prices
Rental car businesses regularly update their fleets and typically offer additional amenities in their vehicles, as they seek to offer an excellent customer experience with each rental. Rental vehicles undergo a rigorous maintenance schedule and are routinely inspected.
“Rental cars follow routine maintenance schedules and are routinely inspected for cosmetic damage,” said iSeeCars Executive Analyst Karl Brauer. “All Hertz and Enterprise vehicles undergo a rigorous inspection process from certified mechanics and come with a 12-month/12,000 mile limited powertrain warranty.”
As consumers look to save some money where they can, they’d be surprised to find the money they can save by seeking alternative ways of finding their next vehicle. Rental locations could be the answer.
While online dealerships have gained popularity as a safe alternative, due to their contactless nature, it’s important for used car shoppers to compare prices across dealers and rental businesses. With a proper price comparison analysis, they can ensure they are getting the best possible deal on a used car.