Things to Consider Before Making a Purchase
- Check the Car’s Mileage – Be sure to ask the rental car company the exact number of miles on the car before the purchase. This will help you calculate the value of the car
- Do a Deeper Inspection – Even if the rental car company may have already done a basic inspection of the car before you buy it, it’s wise to go beyond the surface and do your own inspection. Make sure the car has all the maintenance records and that it’s in good working condition
- Understand the Terms & Conditions – Read up on any potential warranties that the rental car company have or if there may be future penalties for a breach of contract
Once you understand the process and are aware of the risks involved with buying a car from a rental car company, it’s time to get the ball rolling and start the process.
Gather Documents & Do Research
Before you begin to inquire about car purchases from rental car companies, it is important to do some research and gather all the necessary documents. Here are a few steps to complete before shopping for a rental car:
- Secure Financing – Finding financing for your car is important, especially when buying from a rental car company. Look into loans, leases and other financing options with your bank or credit union
- Research GAP Insurance – GAP insurance will make up the difference between what you owe and what your car is worth if there is any damage to the car. Research into GAP insurance so that you’re aware of the costs and coverage.
- Find a Vehicle of Interest – Before you reach out to a rental car company for a sale, it’s important to find a vehicle of interest. Look into the make, model, style and other details to determine if the car is right for you.
Now that you have gathered all the necessary documents and done your research, it’s time to reach out to rental car companies and get started on the purchase process.
Contact Rental Car Companies
The next step in the process is to contact rental car companies to inquire about their policies regarding car sales. Look at their website, check the local newspaper, or come into their office to ask them the types of cars they have available for sale and the prices. Keep in mind that the prices of cars being sold by a rental car company may be slightly higher than when you purchase from an individual. To make sure you are aware of all the terms and conditions, ask the rental car company for a contract outlining all the details of the purchase so you fully understand the agreement.
Test Drive the Vehicle
Once you have selected a car and the rental car company has agreed to the terms, it’s time to test drive the vehicle. The purpose of a test drive is not only to ensure that the car is in working condition but also to get a feel for the car and its performance. Be sure to ask the rental car company if they will let you take the car for a short test drive before the sale is finalized.
Secure Financing
If you agreed to secure financing for the vehicle, you will need to apply to the bank or credit union of your choosing in order to secure the funds. After the loan is approved, be sure to get a copy of the loan agreement with the interest rate and other details.
Complete Paperwork & Finalize the Purchase
Once you have all the documents and agreements in place, you can finalize the purchase by signing the purchase agreement. After signing it and paying the price of the car, you will receive the title or certificate of title for the car that needs to be lawfully transferred to you at the Department of Motor Vehicles.
Bring the Vehicle to an Auto Shop for Evaluation
Before you drive away, it’s important to bring the car for an evaluation to an auto shop you trust. Ask the mechanic to check and confirm the condition of the car and to make sure there are no underlying car issues and that all parts of the car are in working condition.
Understand the Implications of the Warranty
When you buy a car from a rental car company, there may be some implied warranties that come with the car that may not be explicitly stated in the purchase agreement. Be sure to check with the rental car company to see if there are any warranties that come with the car and the conditions of such warranties.
Driving Your New Car
Congratulations on the purchase of your new car! Make sure you register it with the Department of Motor Vehicles (DMV) and purchase an auto insurance policy. Doing so will ensure your car is legal and help protect your investment by providing coverage if there is an accident or other damages. Once all the paperwork is taken care of and your car is registered, you are ready to hit the road in your new set of wheels.
