Remember that scene from the movie “Days of Thunder” when Tom Cruise and that other guy race their rental cars across town? After smashin’ and bangin’ just like on the NASCAR track they arrive at their destination, the cars just two heaps of smoking steel. It would seem from some folks reaction to the words “ex-rental” that they believe that ol’ Tom Cruise just dropped his rented Lumina off at the closest used car lot to be resold after he was done with it. We recently had a customer looking for a used 2010 Expedition. He indicated that he wasn’t interested if it was an ex-rental. In that case, he really need not bother shopping for a couple of years. Where in the world do people think that used 2010 model Anythings come from? Repos? Occasionally. Trade-ins? Rarely. Although a significant number of people attempt to trade-in current model year cars, they are rarely successful just due to the difference between what they owe and what someone will pay for their car. People expect to pay significantly less for a used 2010 than for a new one. So when an owner expects to receive close to what they originally paid, the potential number of buyers pretty much shrinks to zero. After all, most people who are asked to pay close to new price will just ante-up and buy a brand new one.
But back to the rentals. In my experience, there is no evidence that one or two-year old ex-rentals have been any more abused than most trade-ins. In fact, the opposite is more likely. Since most trade-ins occur after the “honeymoon” period of car ownership they are usually the ones not washed regularly, oil change intervals drag out, and minor damage is ignored rather than repaired. Compare these to the ex-rentals you might find on our lot: most of these vehicles have been in service for less than a year and often only for six months or so. They usually come to us with very low mileage on them – often under 10,000 km. How much maintenance should a car like that have had? A couple of oil changes? They’re under warranty so they get repairs if they need it. And the rental companies themselves are motivated to keep them in top shape anyway. They can’t afford to have a car break down or perform poorly for their customers or they lose business. Yes, I know everybody has heard a story from a guy their uncle works with about some Darwin awards contestant that wrecked a rental car. And I also know that I can match each of those stories with ones I’ve witnessed where people have abused cars they’ve tried to trade in. (Don’t worry, those ones get shipped out to those public auctions where your uncle’s other work buddy claims to get all those great deals). I know that every time I’ve rented a car I’ve always been extra careful with it because I didn’t want to get dinged for extra charges. I’m confident that there are a lot more renters out there like me than there are like Tom Cruise.
So next time you’re looking at a used car of the same year as the brand new ones in the showroom, just remember that if it wasn’t for ex-rentals, you’d be looking at an empty parking spot. Take advantage of the savings over new and enjoy the car!
