New vehicle sticker prices have hit record levels. Even pre-owned cars are climbing in cost — and they’re more likely to show mechanical problems sooner. So how do you secure a well-built car while sticking to a budget? Consider purchasing a used rental vehicle.
Major rental brands like Hertz, Enterprise and Avis sell off their previous fleet vehicles at competitive prices. Because these firms regularly refresh their fleets with current models, their retired cars tend to be fairly recent, letting you access up-to-date auto tech and conveniences for less.
Does Buying a Used Rental Car Cut Costs?
Buying a used rental car can indeed lower your expense. Companies such as Hertz maintain extensive inventories of used cars priced under $20,000 — even under $15,000. In fact, Hertz presently lists about 3,000 used vehicles below the $15K mark. That’s a substantial supply priced well under the average pre-owned car value of roughly $25K, per Kelley Blue Book.
Of course, you may locate used vehicles from franchised dealers, independent lots, CarMax and private sellers for prices below $25K. What sets retired rental vehicles apart is their relative youth. Cheaper used cars found elsewhere are often considerably older than those offered by rental firms.
“You give up some extras and the chance to get exactly the trim you want, but you obtain a newer vehicle at a more attractive cost,” said Parker Ellis, of Indiana. He and his spouse bought a used Kia Sportage from Hertz Car Sales and remain satisfied five years later.
If you want a recent-model car, truck or SUV but prefer to avoid former rentals, your primary other option is a dealership’s certified pre-owned (CPO) inventory. CPO vehicles are newer models that pass detailed inspections and have limited miles — yet they sell for an average of $35,169, according to Cars.com.
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Benefits of Buying a Used Rental Car
There are several upsides to purchasing a used rental vehicle:
More Vehicle for Your Money
Yes, older used cars can be cheaper than used rental cars, but finding reasonably priced vehicles that are just two or three years old is rare.
Rental cars tend to be recent enough to include modern safety systems and improved fuel efficiency compared with the typical used car, which averages 5.76 years old at sale.
“I’d never shopped for a nearly-new car before and hadn’t really considered vehicles under five years old, so landing a two-year-old model (even a base trim) felt exciting,” Ellis said. “I don’t need the newest bells and whistles, but safety features improve yearly, so the newest car I can afford is likely the safest for my family.”
Morgan Flaherty of Florida, who bought a one-year-old Chevy Spark from Hertz, echoed that sentiment: “I needed an inexpensive option that didn’t have excessive miles… It did the job, fit my budget, and was fairly recent.”
Remaining Warranty Coverage
Because rental cars are often sold relatively early in their lifecycle, many still retain portions of the manufacturer’s warranty. That means coverage for mechanical faults could remain in effect for some time.
Rental firms may also supply short-term warranties. For example, Hertz Certified and Rent2Buy cars include a 12-month, 12,000-mile limited powertrain warranty. Avis likewise provides 12 months of roadside assistance.
Certified Offerings
Similar to dealership CPO programs, rental companies sometimes market part of their fleets through certified programs. Hertz Certified cars, for instance, go through a 115-point inspection to confirm they meet higher standards.
Note: Not every vehicle listed by Hertz Car Sales is certified.
Longer Evaluation Period
A brief two-mile test drive makes it tough to judge a car. Rental firms often allow buyers more time to evaluate a vehicle.
Hertz Car Sales’ Rent2Buy option, for example, lets you rent a car for up to three days at a reduced rate. If you choose to purchase at the end of that rental, the fees are credited toward the purchase.
Transparent Pricing — No Haggling
Prices for used rental cars are typically straightforward: the listed price is the price you pay. That removes the need to bargain aggressively.
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Drawbacks of Buying a Used Rental Car
Although buying a used rental vehicle often looks like a smart move on paper, there are drawbacks to weigh:
Heavier Mileage
Rental cars accumulate a lot of miles during their time in service, so odometer readings can appear high relative to a vehicle’s age. Manufacturer warranties may expire based on either age or mileage, and higher miles generally raise the likelihood of mechanical problems.
Ellis mentioned the Kia they bought “was about two years old with 32,000 miles on it, which now seems like a lot. I do think most of those miles were highway miles, which tend to be gentler on a car overall.”
Ellis and his family have been fortunate: despite above-average mileage for a two-year-old vehicle, they haven’t experienced any issues in the five years they’ve owned it.
Flaherty had even better luck. The one-year-old Chevy she purchased had only 13,000 miles — typical for a single year of use.
KB Scheinding of Ohio, however, bought a more common example of a used rental: a three-year-old van with 75,000 miles. Still, she reports no major problems in the five years her family has driven it.
Harsher Use
While drivers usually treat their own cars with care, many take more liberties with rental vehicles, especially if they have full coverage. That can translate to increased wear and tear on former rentals.
On the plus side, rental companies may provide a full maintenance history (and a vehicle history report), which private sellers often can’t, making it easier to see whether the car was properly tended to.
“It mattered to us that a used car have an excellent maintenance record before buying,” Scheinding said, noting that maintenance transparency was a key reason she considered rental cars and CPO options over independent lots.
Smaller Selection Locally
Compared with franchise dealers and used car lots, rental companies may offer fewer choices in your region. For instance, Hertz Car Sales listed about 44,000 cars under $20K in early 2025, but when filtering by my city (Cincinnati), that number fell to 374.
“I definitely had to pick from limited availability, but I’ve never been extremely particular about features,” Ellis said. “That’s one of the trade-offs: the selection may be thin and you’ll mostly find base trims.”
Weaker Resale Value
Generally, a used rental car will fetch a lower resale price than a similar privately owned vehicle of the same age, because of the higher mileage and increased wear. The very reasons these cars are inexpensive also mean you’re unlikely to recoup much when you sell.
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Timothy Hall is a personal finance journalist and Certified Financial Education Instructor. He writes about banks, loans, insurance and taxes for Savinly. His work has appeared in outlets such as USA Today, Business Insider and Forbes.
