We all need a new car at some point. When that day comes, most people often only consider buying new, used, or leasing. Another option that is growing increasingly popular, however, is purchasing former rental cars. With this option, several concerns immediately come to mind.
Is it a bad idea to purchase a rental car?
Purchasing a rental car may sound risky. With having previous drivers, will it be a worn-down ? However, used-car shoppers need not worry. Former rental cars are often well-maintained, easy to buy, and priced below-market. Previously he need cars also depreciate at a much lower rate than new cars. Purchasing one from an established rental company is much like buying from a used-car dealership. They inspect their vehicles before sale, may allow you to trade in your current vehicle, and may even offer warranties. Still, there are some special considerations when purchasing a used rental car.
Beware of ‘yo-yo’ financing
Some car dealers will allow you to drive a pre-owned car home before the financing is complete. You should never want to do this. When you accept what they call “spot financing,” you open yourself up to being a victim of the “Yo-Yo” financing scam. A Yo-Yo scam occurs when a customer is led to believe, through acts or omissions by a car dealer providing finance, that the loan finance is final when, in fact, the dealer has not finalised the financing at all. Avoid falling for this unethical practice by financing your car purchase before taking ownership and ensuring all documents are finalised before signing. Watch out for phrases such as “conditional approval” and “conditional delivery.” Do not sign any papers with those terms.
Remember to do all your homework before purchasing a used car and have it inspected by a mechanic you trust. You should also check maintenance records and read up on the rental company’s service policies. Car rental companies may often provide financing options, but it is smart to shop around and get pre-approved loans to get your best rate. For more information, get in touch with Earn-a-Car today.