Buying a car is a stressful event. Buying a used car is even more stressful. You don’t want to buy a lemon and you don’t want to overpay. I purchased my previous car years ago through Enterprise Car Sales and had a good experience with it. You can read about my experience here. In a prior post, I mentioned that I was looking at purchasing a bigger vehicle and eventually bought a minivan. After doing some research, it seemed like the Honda Odyssey was a good choice. One big reason was the fuel economy for such a big car. Unfortunately, Enterprise Car Sales did not carry that car so I considered going to a regular used car lot.
I did not have a good experience with the used car lot. I found a car with a very good price…maybe too good to be true. I had a mechanic check it out and he basically told me to RUN FAR FAR AWAY. He said that even if the price was dropped $2000, he wouldn’t recommend buying it. I didn’t want to deal with shady used car dealers so I considered other types of minivans and looked back at Enterprise Car Sales, but their prices didn’t seem as good as when I purchased from them years ago. I also looked into Hertz Car Sales, which like Enterprise sells their rental car inventory, CarMax, a no-haggle used car retailer as well as a new tech start-up called Carvana, which sells used cars online (they deliver the car to you).
After looking at those option, I found that Hertz had the best prices for the vehicle I was interested in. Hertz advertises that their prices are $1000 or more below the Kelley Blue Book (KBB) value. It is a no haggle price so the price is the price, however, I found the price to be very fair based on my research and over $1500 below KBB value. Also, if you are a Hertz Gold Member, you get an extra $300 off. If you’re not a member, you can just sign up online. They didn’t seem that strict about it. I just showed them my member ID card which I printed from my e-mail.
Hertz offers two options when purchasing their cars. One is Rent2buy and the other is Herz Certified. For the Rent-to-buy program, the cars are still in their rental inventory so you have to reserve the vehicle. You have three days to test drive the car and decide whether to buy it or not. If you end up buying it, you will not be charged for the rental. I went with the Certified program. According to their website, certified cars are “carefully selected from their rental fleet” and then undergo “extensive” inspections because it is put out for sale.
My car buying process went smoothly and without a salesperson trying to pressure me to buy or upsell me. There also wasn’t any hidden fees like “destination fee” or “documentation fee.” The person I worked with showed me the car and took me on a test drive. There was no pressure and the transaction was stress-free. I recommended Hertz Car Sales to a friend of mine and he also bought a car, but he went through the Rent2buy program. The cars in that program might have less mileage as they haven’t been retired from the rental fleet yet. My friend told me that during the three-day test drive, the car ran smoothly and when he took it to his mechanic, he was told the car was “like new.” Hertz also provides a 12,000 mile or 12 month power train warranty. You also get 12-months roadside assistance.
When I’ve mentioned that I purchased my car from Hertz, some have asked me whether I’m worried that it’s was previously a rental car and might have been abused. I guess this is a possibility, but I think the majority of people renting from Hertz are probably people on business. And for others renting the cars for leisure, do you really abuse it or do you just drive like you normally do? Another thing is that I bought a Minivan! Most likely the person renting it is a parent and I doubt they’re flooring it or doing donuts in the parking lot. Also, I think rental car companies have an incentive to keep their cars in good condition so maintenance is not really an issue.
One other criticism was that I didn’t get a good deal because I could not negotiate the price. However, I can’t say that was the case. As I mentioned in my previous experience with Enterprise Car Sales, I did my research and in that instance also went and negotiated at other dealerships. In the end, no-haggle is not a big deal because the price is fair. It’s possible that if you’re an expert negotiator and the dealership you go at a time is desperate to move its inventory you might get a better deal, but I’m happy with my deal. The only downsides for some maybe is that they may not carry the make and model of the vehicle you want, and their cars also probably won’t have higher end features. But I don’t need heated leather seats or an entertainment package so that’s okay.
Would you purchase a vehicle from a rental company or do you prefer to negotiate at the car dealerships?