Can You Still Buy a Used Rental Car at a Bargain?

Will a bargain-priced former rental car become yet another casualty of the pandemic?

Rental car companies, which frequently refresh their fleets, have long been a reliable source of reasonably priced used vehicles for those in the know. But tightening inventories of used cars nationwide are driving up prices of many former rental cars to higher than what you might pay at a traditional dealership.

While rental car prices plummeted at the beginning of the pandemic as companies such as Hertz sold off their inventory, prices have rebounded and now are 4% above the market average, according to an analysis done for NerdWallet by iSeeCars.com, a website that aggregates used-car listings.

Although prices have risen, you still might get a bargain on certain makes and models. And there remain many advantages of shopping the used rental car market. Primarily, it's a good source of late-model used cars, often only 1 year old, that have been well-maintained, says Jeff Rose, a certified financial planner and Avis Car Sales spokesperson.

Here's what to consider if you're looking to purchase a former rental car.

The pros of buying an ex-rental

“If you’re just looking to save money by going to a rental car lot, it isn’t going to offer the great deals it once did,” says Karl Brauer, executive analyst at iSeeCars.com. “But if you like the other options a rental sales lot offers, it could still be a good choice.”

There are still some bargains

If you’re shopping for a sedan or economy car, the rental sales lot might still save you some money. While used car prices in general have risen, Rose says the cars on Avis' lots are often $2,500 below Kelley Blue Book pricing. Furthermore, he says Avis' cars are typically 1 model year old.

The iSeeCars report found several bargains: The Nissan Versa Note and the Chevrolet Camaro now being sold by rental car agencies are both 6% below the market. And you might get lucky with other sizes of cars as well: The popular Jeep Wrangler can be purchased at a rental car lot for a savings of 4.5%, or $717, according to iSeeCars.