Want to Buy a Used Car? Contact Hertz
Hertz rental car company recently filed for bankruptcy protection, and the decision has had an unusual effect: the market for used cars is being flooded with inventory. Now is a great time for those in the market for a used vehicle to check whether they can buy one from Hertz at a cheap price.
Plenty of Inventory
Of course, those in the market for a used vehicle have always been able to buy from one of the major car rental companies, such as Enterprise or Avis. Along with Hertz, these companies have historically sold off their vehicles after a couple years of service. If you are interested, you should visit each company’s website and check the models available as well as the price. Generally the prices are fixed.
Edmunds.com performed an analysis and found that rental car companies typically sold their inventory at a lower price than used car lots. Sometimes, buying directly from a rental car company could save a buyer 5-15%.
With Hertz entering bankruptcy, however, analysts expect even more inventory to hit the market. An article on Yahoo News predicts that prices this summer could be much lower than in previous years. Those looking to buy a GM, Nissan, or Fiat-Chrysler vehicle should be most pleased with the inventory, since those companies sell the most to rental car companies.
One advantage of buying from a rental car company like Hertz is that potential buyers usually get several hours to test-drive a vehicle. Hertz will even deliver the car to you if you live within 75 miles of a rental location.
Some rental car companies will also allow people to return a car if they do not like it for a refund of the purchase price, less a restocking fee. Enterprise, for example, offers a 7-day buyback period, which reduces the risk of buying one of their vehicles.
Some rental car companies will also offer their own financing, which can offer better terms than banks and credit unions. Because Hertz is going bankrupt, getting financing through them could be a problem.
Have the Car Looked At
If you choose to buy a car from Hertz, you should take advantage of any offered test drive to get the vehicle inspected. Some rental cars have suffered significant wear and tear, though commentators note that rental car companies have historically had an incentive to repair their vehicles. Nevertheless, you do not want to buy a car that is in poor shape. Take it to a mechanic for an inspection before agreeing to buy.
Many Companies Are Filing for Bankruptcy
Hertz is only the latest company to file for bankruptcy. According to media reports, it had $19 billion in debt. But even smaller family businesses in South Florida are struggling in the current economic climate.
If you would like to talk with a Plantation bankruptcy attorney about what comes next for your business, call Nowack & Olson, PLLC today. You can schedule a consultation by calling 888-813-4737.