Psst!
How’d you like to buy a late-model used car? Nice one. Well maintained, got all the records. Fully inspected. Great warranty, too.
The catch? Well, for a year or so it was a rental car . . .
In the popular mind, rental cars have been abused–driven hard by a succession of unconcerned drivers. But that’s a misconception.
Though rental cars are operated by a variety of people with different driving styles, there’s no evidence that they are punished more than cars generally.
And they are late-model cars–1 to 2 years old–with relatively low mileage–typically around 25,000 miles.
But most important, rental cars are likely to have been well cared for in their off-hours.
That all adds up to make them a good used-car alternative.
Scheduled maintenance is the key. These vehicles are “better maintained than the average person does” for his or her own car, said Walter Seaman, division vice president for Fleet Maintenance & Car Sale Operations at Hertz Corp. “We want the customer to be satisfied with the car.”
Hertz is the major player among rental firms selling cars to the public, having marketed cars directly to consumers since the 1970s, when some 50,000 were sold each year. In the late 1980s, direct sales stopped for a couple of years because manufacturers were taking rental cars back through repurchase programs.
In 2000, Hertz expects to sell 30,000.
Hertz chooses the best cars from its rental fleet–cars must pass normal inspection and have no significant history of damage or chronic maintenance problems–and makes them available at its 42 sales locations across the country. By year-end, it expects to have 50 sales locations active. Four were opened early in 1999, including one in Elmhurst to go along with its one in Naperville.
“We show the customer our maintenance files,” Seaman added.
Besides, Seaman said, Hertz referrals and repeat customers account for more than 50 percent of business.
Hertz uses no-haggle pricing, which it says it pioneered in the 1970s. “It’s an atmosphere (customers) don’t feel threatened by,” Seaman said.
Prices are set by the main office. And, though most fall between $12,000 and $16,000, they can range from $8,995 to $26,000 or $27,000 (for a sport-utility).
Hertz and competitor Budget Rent A Car Corp., which also sells cars directly to the consumer, say mileage is the major factor in retiring a car from the rental fleet. They’re removed at 23,000 to 27,000 miles (Budget) or 24,000 to 27,000 (Hertz). Budget says its cars are typically seven to nine months old at that mileage.
Because of this, manufacturer warranties still apply to nearly all the vehicles. Hertz customers also are offered a selection of extended warranties, which range up to comprehensive coverage for four years or 48,000 miles with no deductible for $799. Maintenance and repairs are handled by outside facilities, as they are for the Hertz rental fleet.
Each Hertz store has as many as 75 late-model, low-mileage cars for sale. Not all are Ford products, though Hertz is part owned by Ford Motor Co., General Motors, Toyota, Nissan and Mazda vehicles are available. And vehicles runs from subcompacts to mini-vans and sport-utilities though there are no luxury cars.
All Hertz cars are reconditioned, having undergone an 89-point maintenance check. Buyers get a five-day, 500-mile satisfaction guarantee in which the car can be repaired or exchanged or a refund tendered.
Few cars are returned under this Hertz policy, said Seaman.
Hertz Car Sales outlets don’t accept trade-ins though financing can be arranged on-site through a variety of outside lenders.
Internet users can browse Hertz’ selection at www.hertzcarsales.com by city, state, model and price. Photos also are available, in the Showroom portion of the Web site.
“Every dealer’s after a certain niche of customers,” said David Portell, manager at the Elmhurst Hertz location. A typical buyer has a car that’s 5 or 6 years old.
Vehicles at the Elmhurst Hertz, for example, outlet are mostly “middle-of-the-road,” Portell said. You’ll find more Ford Tauruses, Mercury Sables and Chevrolet Luminas than specialty cars.
The Elmhurst location shares its facility with a rental desk, but not all Hertz Car Sales dealerships offer rentals, and not every major rental company markets its fleet vehicles directly to consumers.
Avis Inc., for instance, used to sell many cars that way but now disposes of them through wholesale auctions or other means.
Other rental companies take a different approach. Sales locations are set up under the rental agency’s name, but the vehicles sold aren’t all former rental cars. Some have been obtained through wholesale auctions, as trade-ins or as off-lease vehicles.
Budget, for example, has 30 corporate-owned dealerships, including five in Indiana–one each in Lafayette, Ft. Wayne and Clarksville and two in Indianapolis–offering low-mileage, late-model cars.
Budget Car Sales dealers accept trade-ins. Buyers have a three-day/300-mile exchange guarantee and receive a 100-day/3,000-mile limited warranty. Most dealerships have a full service department.
At Budget, all vehicles undergo a 101 Gold Point inspection for safety, mechanical reliability and detailing. Cars are up to 3 years old, with low mileage. Budget say it has sold more than a million cars since 1980.
The Budget name “inspires the consumer’s confidence,” said Sandy Miller, chairman of Budget Groups Inc.
“A recognized brand name in used cars is important,” said Jay A. Betz, president of Thrifty Car Sales, a unit of Thrifty Rent-A-Car System Inc. In the rental-car business for 41 years, Thrifty is developing a franchise for sales, with independently owned facilities. As with Budget, some, but not all, of the vehicles are rental cars.
Within limits, franchised Thrifty dealers can sell the vehicles they want, Betz said. Thrifty licenses its name. Ninety percent of Thrifty vehicles are certified, with a three-month/3,000-mile bumper-to-bumper warranty.
One location, in Florida, is up-and-running and five others are in the test stage. Though none are in the Midwest, Thrifty expects to have 40 franchised dealerships by year-end.
Payless Car Sales stores, part of Payless Car Rental, have been around since 1994. Dollar Rent A Car also sells cars–in California and Nevada.
Direct sales to consumers account for about 4 percent of Budget rental cars (5,000 out of 140,000 yearly), a small amount when you consider 45 million used cars change hands yearly.
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Call Hertz Car Sales at 1-800-654-3131 or visit www.hertzcarsales.com; Budget Car Sales at 1-888-617-4722 or visit www.budgetcarsales.com; or Thrifty Car Sales at 1-877-289-2583.
