When it comes to purchasing a used car, ex rental cars are a popular option. These cars were previously used as rental vehicles for a certain period, and are then sold off to dealerships or private buyers. Financing ex rental cars is an option for those who do not have the cash on hand to make a full payment. However, before making the decision to finance an ex rental car, it is important to weigh the pros and cons.
Pros of Financing Ex Rental Cars
1. Low Cost: Ex rental cars are typically sold at a lower price point than new or privately owned used cars. This makes them an attractive option for those who are on a budget or looking for a good deal.
2. Well-Maintained: Rental companies often have strict maintenance schedules for their cars, which means that ex rental cars are generally well-maintained. This can be a reassuring factor for buyers, as they can be confident that the car they are purchasing has been well taken care of.
3. Warranty: Many ex rental cars come with a manufacturer’s warranty, which can provide peace of mind for buyers. This means that if any issues arise with the car within a certain period of time, the manufacturer will cover the cost of repairs.
4. Availability: As rental companies often have large fleets of vehicles, ex rental cars are often readily available at dealerships. This means that buyers have a wider range of options to choose from when looking for a used car.
5. Financing: Banks and Auto Finacne companies typically approve of rental cars easily due to the fact of reasons listed above. Note, the lower the kilomters the better, but 20,000 kms per year is average.
6. Value: Drive a newer model vehicle while keeping the over all cost down, and usually lower month payments than a brand new one with similar features. Many of these vehicles have a medium range of options, meaning there are not fully loaded, but also not basic.
Cons of Financing Ex Rental Cars
1. High Mileage: Rental cars are often driven by multiple people, which means that they can accumulate a high number of miles in a short period of time. This can lead to higher maintenance costs and a shorter lifespan for the car.
2. Wear and Tear: As rental cars are often used by multiple people, they may have more wear and tear than privately owned used cars. This can lead to cosmetic issues as well as mechanical issues that may need to be addressed.
3. Limited Features: Rental companies often purchase base models of cars, which means that ex rental cars may not have all of the features that buyers are looking for. This can be a drawback for those looking for specific features in a car.
4. Reputation: There is a stigma attached to ex rental cars, as many people view them as being driven recklessly or poorly maintained. This can lead to lower resale value and difficulty selling the car in the future.
Is Financing and Ex Rental Car a Good Idea?
Overall, financing an ex rental car can be a good option for those who are looking for a low-cost, well-maintained vehicle. However, buyers should be aware of the potential drawbacks, such as higher mileage and wear and tear. It is important to do your research and take a test drive before making a decision. Ultimately, the decision to finance an ex rental car will depend on your individual needs and preferences.
Want to learn more about financing an ex rental car, or just want to get approved now for finaincing? Check out the car loan payment calculator here to estimate payment and interest.