Car Insurance Tips: How to Buy a Rental Car

It Is possible to buy a rental car. Yes, it is possible, and many people do buy rental cars.  There is a wide selection of cars available from manufacturers and models on sale at reduced prices that range from hatchbacks to sedans, SUVs and 4x4s. Expect to find popular models, like the Toyota Corolla Quest, VW Polo Vivo, Kia Picanto, and Etios. First for Women takes a closer look at the advantages of buying a used car from a rental company. Discover how to buy a rental car with these car insurance tips and insights.

Car insurance tips: is it a good idea to buy a rental car? 

Rental cars account for 15% of vehicle sales in South Africa[1] - a fair volume of sales, and it’s no wonder. Buying a rental car is worth it, and that is because car rental companies offer quite a bit of security. Car rental companies build their fleet and maintain an up-to-date inventory by regularly selling off their older car models to purchase new vehicles. Plus, buying a well-known and trusted car brand means that the vehicle will retain its value over time and reduce the cost of owning the car in the long term. 

How to buy a used car

More often than not, most car rental companies' sales websites allow you to search for their used cars for sale by make, model, year, mileage and colour. You can even use the price lever, which will help you narrow down your options and save time. 

Benefits of buying a used car

There are several benefits to buying a used car, some of these include the following: 

1. Lower car prices

Negotiating car prices could be seen as either a good or a bad thing, depending on your personality and your negotiating skills. Either way, rental cars are usually priced below market value, as car rental companies want to move them off the floor quickly.  It’s important to note that should you want to resell your car down the line, it will have a lower resale value when compared to a car with only one previous owner. 

2. Well maintained

It may be a perception that car hirers don’t drive a rental car as carefully as they would their own car, but this may not be completely true because damages to a rental car are paid for by the hirer. Many rental cars have been well maintained with regular cleans and checks because it is in the rental company’s best interest to keep their fleet in top-notch condition.

3. Affordable finance options

In the same way that new and second-hand car dealerships will, most car rental companies can provide you with financing options through accredited South African financial service providers. 

4. 30-day exchanges

Some car rental companies, like Avis, offer a 30-day exchange plan should you not be satisfied with the mechanical condition of the car you have purchased. In this case, they will replace it with a similar one or one that is within the same price range. 

First for Women tips for buying a rental car 

• Check the mileage - rental cars tend to have more mileage on the odometer than a typical used car of the same age. However, most rental cars that are for sale are less than two years old and have around 100,000km on the clock. If a car is a little older, choose the one with the lowest mileage. 

• Confirm ownership - ask for proof that the car has been bought directly from the manufacturer.

• Look at the service history - make sure the car comes with a full-service history report. If there’s a drop in the documented mileage between one service and the next, for instance, this could be a reason for concern. 

• Check the service plans intervals - a failure to adhere to the regularly scheduled service may make a warranty invalid. Double-check this with the car manufacturer. 

• Opt for an extended warranty - ask if there is an option to extend the car warranty through an accredited third-party insurance provider, like First for Women. 

• Confirm any accidents - ask the rental company for detailed records of all incidents that have occurred involving the car, as previous damage repairs may affect the residual value of the vehicle. 

• Consider a trade-in - if you’re replacing it with an existing car, some car rental companies may be open to a trade-in to help sweeten the deal. 

Can you get car insurance for a used car?

Yes, it is possible to get second-hand car insurance. First for Women recommend getting car insurance for your vehicle, regardless of whether it is brand new or a used car. Rental car insurance is also an option available for drivers who plan on renting a car for a set amount of time. Take a look at the First for Women’s guide on Insurance for vehicles for more information about car insurance. 

South African car rental companies who sell used cars

If you’re interested in buying a second-hand car without the used-car salesman syndrome, check out these car rental companies with branches across South Africa: 

• Hertz

• Car car (first car rental)

• Avis

• Thrifty

Get a car insurance quote for used car

For car insurance options or car rental insurance, First for Women offers a variety of different plans and exceptional benefits specifically designed to help you when you need a little extra assistance. Get a car insurance quote online today. 

Sources:

[1] Wheels24: What might happen to used vehicle prices, if rental car companies go bust? 

 Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice. First for Women is a licensed non-life Insurer and FSP. T’s & C’s online.