Pros and Cons of Buying a Used Rental Car to Save Money

New car prices have reached all-time highs. Even used cars are becoming more expensive — and they’re more likely to experience mechanical issues in the short term. How can you get a high-quality car on a budget? By buying a used rental car.

Big-name rental companies like Hertz, Enterprise and Avis sell former fleet vehicles at affordable prices. And because these companies keep their fleets up to date with new models, their retired cars are still relatively “new,” meaning you can get the latest car tech and features more affordably.

Does Buying a Used Rental Car Save You Money?

Buying a used rental car can save you money. Agencies like Hertz have a large selection of used vehicles under $20,000 or even $15,000. In fact, Hertz currently has 3,000 used vehicles under $15K. That’s a lot of vehicles going for significantly less than the average cost of a used car: $25K, according to Kelley Blue Book.

Of course, you can find pre-owned vehicles from dealerships, used car lots, CarMax and private sellers for much less than $25K. But it’s the age of the retired rental cars that make them compelling. Other used cars at lower price points are typically older than vehicles you’ll find through rental companies.

“You sacrifice bells and whistles and the ability to get exactly the car you want, but you get a newer car at a better price,” said Parker Myers, of Indiana. He and his wife purchased a used Kia Sportage from Hertz Car Sales and are still happy with the decision five years later.

If you’re looking for a recent-model-year car, truck or SUV but aren’t interested in a former rental, your main alternative is a model from a dealership’s certified pre-owned (CPO) program. These are recent models that pass thorough inspections and have limited miles on them — but they retail for an average of $35,169, according to Cars.com.

Pros of Buying a Used Rental Car

Buying a used rental car has some advantages:

More Car for Your Buck

Sure, you can find older used cars cheaper than used rental cars, but it’s hard to find affordable used cars that are only two or three years old.

Rental cars are usually new enough that they offer the latest safety tech and increased fuel economy compared to the typical used car, which is an average of 5.76 years old when sold.

“I’ve never shopped for a new car in my life and can’t say I’ve seriously looked at a car under five years old before this point, so to get a two-year-old car (even a base model) was exciting for me,” Myers said. “I don’t need the latest and greatest, but I know that safety standards are getting better and better every year, so the newest car I can afford is probably the safest for me and my family.”

Morgan Flaherty of Florida, who purchased a one-year-old Chevy Spark from Hertz, agrees: “I needed to find a car that was less expensive, but also didn’t have a ton of mileage… It got the job done, was within my budget, and relatively new.”

Warranty

Because used rental cars are sold early in their lifespan, the manufacturer’s warranty often still applies. So, the car might be covered for mechanical issues a while longer.

Rental agencies may also offer free limited warranties. Hertz Certified and Rent2Buy vehicles, for instance, come with a 12-month, 12,000-mile limited powertrain warranty. Avis also offers 12 months of roadside assistance.

Certified Programs

Much like dealership CPO programs, car rental companies often sell some of their fleet as part of a certified program. For instance, Hertz Certified vehicles undergo a 115-point inspection to ensure they’re in top-tier condition.

Note: Not all vehicles sold through Hertz Car Sales are certified.

Longer Test Drive

It’s hard to make a decision after a two-mile test drive. Rental agencies typically give you more time to think things over.

For instance, Hertz Car Sales has a Rent2Buy program: Rent the car for up to three days at a special rate. If you decide to buy the car at the end of the rental period, the charges are waived.

No Negotiating

Used rental car pricing is usually transparent — what you see is what you get. That means you don’t need to go in ready to haggle for a car.

Cons of Buying a Used Rental Car

On paper, buying a used rental vehicle sounds like a no-brainer, but there are drawbacks to consider:

Higher Mileage

Rental cars get a lot of use during their brief time in the fleet, so expect the reading on the odometer to look high for the car’s age. Manufacturer warranties can max out based on age or mileage, and the more miles a vehicle has on it, the more likely mechanical issues are to show up.

Myers said the Kia rental he purchased “was about two years old and had 32,000 miles on it, which, now that I’m doing the math in my head, seems like a ton. I do think that to put that many miles on a car in that short of a time, it had to be mostly highway driving, which is easier on the car as a whole.”

Myers and his family have been lucky. Despite the higher-than-average mileage for a two-year-old car, they haven’t had a single problem in the five years they’ve owned the car.

Flaherty was even luckier. The one-year-old Chevy she bought had only 13,000 miles on it — pretty standard for a year of driving.

KB Scheinding of Ohio, however, purchased a more typical used rental: a three-year-old van with 75,000 miles on it. Even so, she said she and her family have had no major issues in the five years they’ve owned it.

Rougher Driving

Drivers will likely be cautious in their own vehicles, but many are willing to push the limits when they don’t own the car and purchased full coverage. This means former rental vehicles often have more wear-and-tear.

That said, rental agencies may be able to offer something private sellers do not: a complete maintenance record (and a vehicle history report), which can help you understand if the used rental was well maintained.

“It was important to us that a used car have an excellent record of maintenance before we bought it,” Scheinding said, a key reason she and her family considered rental cars and CPO programs before used car lots.

Limited Inventory

Compared to dealerships and used car lots, rental car companies might have limited options in your area. For instance, Hertz Car Sales boasts roughly 44,000 cars under $20K in early 2025, but when I filter by location to my city (Cincinnati), that drops to 374.

“I definitely had to choose from limited availability, but my criteria for a car has never been super picky,” Myers said. “I think that’s one of the main trade-offs when you go this route; the pickings are likely to be slim and you’re mostly going to be looking at base models.”

Lower Resale Value

In general, the resale value of a used rental car is lower than the resale value of a similar vehicle of the same age, thanks to the higher mileage and greater wear-and-tear. The same reason you can purchase a used rental car so affordably is the reason you’ll struggle to make decent money when you sell it.

Timothy Moore is a personal finance writer and Certified Financial Education Instructor. He covers banks, loans, insurance and taxes for The Penny Hoarder. Find his work on sites such as USA Today, Business Insider and Forbes.

This was originally published on The Penny Hoarder, a personal finance website that empowers millions of readers nationwide to make smart decisions with their money through actionable and inspirational advice, and resources about how to make, save and manage money.