Can you rent a used car?
When it comes to buying a car, you can be torn between buying and leasing. While leasing a car can be a great option if you want a different car every few years, you might be put off by the high monthly payments for the cars you’re interested in. What you might not realize is that you can hire a car as well. used car. Although used cars only make up a small percentage of the rental car market, it is still possible to rent a used car. And with used car prices at record highs, leasing a used car could be a smart financial move.
So how can you rent a used car, and is it a good idea? We have the answers.
What used cars can be rented?
Used cars available for rental are usually certified used cars (also known as CPOs) from car dealerships. A CPO car is a late model used car that is sold by a franchise dealer after having been carefully inspected, and comes with an extended powertrain warranty and bumper-to-bumper warranty. Each manufacturer has different criteria for their CPO vehicles, but they will generally be less than 6 years old and have no more than 48,000 miles on the odometer.
You can also take over a lease from someone who wants to get out of their lease. It may be because they are facing difficulties or because they no longer need a vehicle. Whatever the reason, they will post their car on the website of a leasing company like SwapALease.com or LeaseTrader in the hope that someone can take over their rental so they don’t have to incur the penalties associated with the breach of their rental contract. In this case, you won’t be required to make a deposit and you can probably negotiate with the seller to pay the transfer fee. However, when taking over someone’s lease, you need to estimate how much you plan to drive the vehicle to make sure you don’t go over the mileage limit. If you exceed the mileage limit, you will have to pay a penalty when you return the car.
How to find a used car for rent
Used car rentals from dealerships are rare and not widely advertised. The best way to find a used rental car is to do the legwork yourself. All the major manufacturers, both consumer and luxury, offer CPO vehicle rentals. However, some automakers, including Stellantis, Ford and Nissan, need outside financing, while Toyota’s finance department provides financing for used vehicle leasing.
The best way to find a used car rental is to decide which vehicle you are interested in and call the franchise dealerships to see if they have used car rentals on their CPO inventory.
How to shop for a used car rental
When deciding if leasing a used car is right for you, you should always shop around. Just like you need to shop around when shopping for used vehicles, you need to contact multiple dealerships to see which one offers the best price.
You should also compare the cost of leasing a used car with the cost of a new car. New car leases often come with better finance rates and can also have incentives and special offers. This difference in cost between leasing a new car and leasing a used car will be less with used Honda and Toyota cars, while the savings will be greater on luxury vehicles from Acura or from Lexus.
The smartest used car rental purchases are for cars of the later model year, two to three years old and still under warranty, or that have extended warranties. Otherwise, you are responsible for costly repairs to a car you don’t own. Keep in mind that auto insurance is often more expensive for rented cars, so be sure to get a quote from your insurer and factor that into your budget.
As with any used car purchase, you should make sure to have the car fully inspected by an independent mechanic before renting it. You should also use some useful online research tools like iSeeCars free VIN check which provides a free CARFAX or Autocheck vehicle history report as part of its comprehensive VIN check tool. A full VIN check will complete the vehicle history report to provide all the important information that an interested buyer should know before purchasing a used car.
How do used car leases work?
Used car leases have a similar structure to new car leases. Much like a new car rental, the lender will base payments on the residual value of a car relative to its selling price. The lender will also determine a monetary factor, which is the vehicle’s interest rate. Just as used cars generally have higher interest rates than new cars, a used car rental will likely have a higher interest rate than a new car rental. However, since a used car has already undergone depreciation, the used vehicle will have a lower selling price and depreciation rate, resulting in a lower monthly payment than a new car rental. . The savings between new and used car rentals tend to be greater when renting luxury cars.
Used car rental: advantages
The main attraction of leasing a used car is the lower monthly payments. It can also allow you to afford a more expensive car than you would be able to afford with a new rental car. If you don’t care about having the very latest in automotive technology, but want to get rid of a car before it gets too old, then leasing a used car can be a great option.
Used Car Leases: Disadvantages
By leasing a used car, you are responsible for repairs after the vehicle has passed its warranty. You will also not be able to take advantage of the main advantage of new car leasing, which is driving a brand new car with the latest technology. By leasing a used car, while the payments are probably lower, you are still making monthly payments and maintenance costs for a vehicle you don’t own. You may also be charged at the end of the lease if the vehicle is not in good condition or if you exceed the mileage limit. In many cases, buying a practical used car and keeping it for several years will save you money in the long run compared to leasing.
If you are interested in leasing a car and want to lower your monthly lease payments or switch to a more expensive vehicle while lowering costs, leasing a used car can be a smart move. However, used car rentals are hard to come by, so you should be prepared to go the extra mile to find the best used car rental deals. Also, be sure to compare prices and rental rates to other used CPO leases as well as new vehicle leases. Avoid leases that extend beyond a car’s warranty so you’re not responsible for costly repairs.
Finally, once your lease term is over, you will have the option of a lease buyout with a purchase price based on the residual value of the car. If you don’t buy the car, you will need to find another car to hire. That’s why buying a used car outright, which you can keep for as long as you want, is often the best long-term financial decision.
If you’re interested in a new car or a used car, be sure to check out iSeeCars’ award-winning car search engine. It uses advanced algorithms to help buyers find the best car deals among all used cars and provides key information and valuable resources like iSeeCars free VIN check report and best car ranking. Filter by make, model, price, CPO vehicles and special features to find the best deal on your next vehicle.
This article originally appeared on iSeeCars.com.