The COVID-19 pandemic has caused many people to avoid public transportation and purchase a car instead, leading to a recent increase in used car sales.
Now might be a good time to buy a used car since some car rental companies, including Hertz, are going bankrupt and offloading their used rental cars at low prices. In fact, Hertz has to unload 200,000 cars before the end of 2020.
If you do your research, you can find high-quality, used rental cars that are still in good condition and have low mileage. And you’re likely to snag a significant discount when purchasing from a rental car company like Hertz as opposed to buying a new car from a dealership. Just keep in mind that interest rates on auto loans are higher for used cars.
Insurance premiums, on the other hand, are typically lower for used cars, but that’s not always the case. Some insurance providers will provide you with lower premiums than others, which is why it’s important to shop around.
7 Steps to Buying a Car from Hertz
Since Hertz filed for bankruptcy in May, the company is required to sell close to 200,000 cars before the end of the year in order to repay its lenders, according to the U.S. Securities and Exchange Commission. That could mean a cheap deal on a used car from Hertz. If you’re interested in taking advantage of the situation, here’s how to go about purchasing a used car from Hertz.
1. Evaluate Your Budget
The first step to purchasing a used car is understanding what you can afford.
Your monthly payment will depend on the vehicle’s purchase price, the APR you qualify for based on your credit score, and the loan term. You can use a loan calculator to determine the maximum sticker price you can afford based on a monthly payment that fits in your budget.
Keep in mind that Hertz has a no-haggle price policy, which means you won’t be able to negotiate. But they’ll offer you a low price on your next car right off the bat, so you can save yourself the hassle of trying to bargain.
2. Choose the Right Car for You
Now that you know what you can afford, it’s time to select a vehicle.
Do you need an SUV with all-wheel drive, or would you prefer a compact vehicle with great gas mileage? Do you have a manufacturer in mind, such as Nissan or Hyundai? Use the Hertz Car Sales website to search their inventory by price and location, or go to a Hertz car sales location near you.
3. Understand Your Insurance Costs
Your monthly auto loan payment isn’t the only cost you have to worry about. You’ll want to factor in how much your car insurance premium will be when deciding what you can afford. You can use Insurify to estimate the insurance rate for the car of your choice. Some insurance companies may offer lower premiums than others. With Insurify, you can compare premiums side by side, so you’re sure to get the best possible rate.
4. Get Pre-approved for an Auto Loan
While you can get financing through Hertz’s partners, it’s always a good idea to shop around for the lowest APR.
That’s especially true if you have less-than-perfect credit since interest rates can vary significantly from one lender to the next. In the first quarter of 2020, the average APR for a borrower with excellent credit was just 4.29 percent, while the APR for a borrower with poor credit was 20.45 percent, according to Experian data.
5. Check the Vehicle History Report and Warranty
Many of Hertz’s used cars are still under factory warranty, and all Hertz Certified vehicles include a 12-month/12,000-mile powertrain warranty.
If you want additional peace of mind beyond that, you can also purchase a Hertz vehicle protection plan. But even with that extra protection, you’ll want to get a vehicle history report from Carfax so that you’re aware of any past damage to the vehicle. This may influence your decision to purchase the car. Finally, you’ll want to do a test drive to make sure the car feels like a good fit for you.
6. Purchase the Car
Before you move forward with buying the vehicle of your choice, check online for coupon codes for Hertz car sales.
Currently, you can save $350 when you buy a used car from Hertz if you sign up to be a rewards member, and AAA members can get $300 off with proof of membership.
If you’re not completely sure you’re ready to move forward with your purchase, Hertz has a Rent2Buy program that allows you to try out the car for three days at a special rental rate. If you choose to buy the car, Hertz will waive the rental fee. And if you want a contact-free car-buying experience, Hertz offers home delivery in eligible states.
7. Arrange for an Inspection
If you choose to utilize the Hertz Rent2Buy program, you should have the car inspected during your three-day trial period.
Even after you buy the car, Hertz offers a buyback guarantee that allows you to return the car within seven days or 250 miles, whichever comes first. During this time, an independent inspection will let you know that there are no issues with the vehicle.
Buying Affordable Car Insurance for Your New Ride
Whether you buy a Kia or an Infiniti from a car dealership or from hertzcarsales.com, you’re going to need car insurance before you can legally drive your vehicle. The only states that don’t mandate insurance coverage are New Hampshire and Virginia, and even in these states, having car insurance is essential.
Typically, used cars are cheaper to insure, but this depends on many factors, including the value of the car and the included safety features. Your rate will also depend on your driving record and, in most states, your credit score.
Since there’s a lot that goes into determining a car insurance premium, including discounts you may be eligible for, it’s best to compare car insurance quotes side by side. With Insurify, you’ll just need to enter your information once to have access to customized quotes from a variety of different insurance companies. You can even toggle between coverage options to find a policy that fits your budget.