I been looking at Hyundai's sedans. I notice a lot of them are used in car rental fleets. This concerns me as my thoughts are that being perceived as a rental car brings done the resale value. So is this a real concern?
Does a vehicle percieved to be a rental car lower it's resale
- Thread starter WhyMe
- Start date
- Status
I think the issue is that rental and fleet companies typically buy the cheapest, most dreary, exceedingly average vehicles.
The cars don't have lower resale value because they're used as rental cars, they have lower resale value and are used as rental cars because they're generic, average, sensible cars in every sense.
There's nothing wrong with that, but typically cars that have strong resale value stand out in at least one way (reliability, entertainment, comfort). Most mass-market commodity cars drop like a stone after initial sale.
The cars don't have lower resale value because they're used as rental cars, they have lower resale value and are used as rental cars because they're generic, average, sensible cars in every sense.
There's nothing wrong with that, but typically cars that have strong resale value stand out in at least one way (reliability, entertainment, comfort). Most mass-market commodity cars drop like a stone after initial sale.
Originally Posted by WhyMe
I been looking at Hyundai's sedans. I notice a lot of them are used in car rental fleets. This concerns me as my thoughts are that being perceived as a rental car brings done the resale value. So is this a real concern?
Yes rental cars do carry a stigma in as much as they are driven by people who don't own them and therefore don't care how they drive/treat them.
I been looking at Hyundai's sedans. I notice a lot of them are used in car rental fleets. This concerns me as my thoughts are that being perceived as a rental car brings done the resale value. So is this a real concern?
Yes rental cars do carry a stigma in as much as they are driven by people who don't own them and therefore don't care how they drive/treat them.
It's a real fact. Certain car makers got out of selling to rental fleets because it lowered the resale value of their cars and therefore made them more difficult to sell to the general public. Part of that was also due to the fact that they weren't popular cars so in order to keep the production lines going, they discounted them to rental fleets.
Originally Posted by Rand
are you buying a used rental car?
nope. i am looking at new Hyundai sedans, and am concerned that since so many are used in rental fleets might affect the resale value
are you buying a used rental car?
nope. i am looking at new Hyundai sedans, and am concerned that since so many are used in rental fleets might affect the resale value
Originally Posted by WhyMe
nope. i am looking at new Hyundai sedans, and am concerned that since so many are used in rental fleets might affect the resale value
You're trying to make something out of nothing. The number of Hyundai vehicles sold to consumers vastly outnumbers the ones sold to rental agencies.
What a odd ?
nope. i am looking at new Hyundai sedans, and am concerned that since so many are used in rental fleets might affect the resale value
You're trying to make something out of nothing. The number of Hyundai vehicles sold to consumers vastly outnumbers the ones sold to rental agencies.
What a odd ?
Originally Posted by WhyMe
I been looking at Hyundai's sedans. I notice a lot of them are used in car rental fleets. This concerns me as my thoughts are that being perceived as a rental car brings done the resale value. So is this a real concern?
I can also see things the other way around... Any line of vehicles deemed endurable enough to withstand the rigors of being a rental car, can't be too bad. Let's face it, rental cars are driven pretty hard and get only minimal maintenance for their short lifetime as a rental vehicle. The rental company will stay away from anything that has a track record of early failure. They will also stay away from vehicles with a disproportionately high depreciation rate.
That said, I don't think I would ever purchase an out of service rental car but, that's a whole different ball of wax.
Ray
I been looking at Hyundai's sedans. I notice a lot of them are used in car rental fleets. This concerns me as my thoughts are that being perceived as a rental car brings done the resale value. So is this a real concern?
I can also see things the other way around... Any line of vehicles deemed endurable enough to withstand the rigors of being a rental car, can't be too bad. Let's face it, rental cars are driven pretty hard and get only minimal maintenance for their short lifetime as a rental vehicle. The rental company will stay away from anything that has a track record of early failure. They will also stay away from vehicles with a disproportionately high depreciation rate.
That said, I don't think I would ever purchase an out of service rental car but, that's a whole different ball of wax.
Ray
Resale value on any car is very low, cars in general depreciate badly. With so much over-capacity in the industry, its no wonder.
I would never buy a vehicle based on resale value. Buy the vehicle that works best for you, and look to keep it 7+ years. Any other scenario costs you huge.
I would never buy a vehicle based on resale value. Buy the vehicle that works best for you, and look to keep it 7+ years. Any other scenario costs you huge.
I know the few times I've rented a car, I beat the snot out of it and treated it like it wasn't mine. A lot of others do the same. I know the rental companies aren't always on top of the maintenance either. I personally wouldn't even consider buying a rental car.
I've rented many cars over the years. I have train tracks I cross everyday. If I'm in my wifes or my car, I cross it gently. If I'm in a rental car....
I've owned at least 3-4 rental cars . Avis, National, Hertz all used to sell at the PTI airport. I've owned an olds Calais, Cutlass ciera, grand am, and a 2001 Ford escape.
I bought them all under 30k miles and drove them over 150k without issue. Usually any recalls were taken care of before I got the car.
Now not many rental companies sell, maybe Enterprise. At one time dealers in had a deal to buy back rentals and sell the rentals and that's when most stopped having a car sales lot.
Some of you might have bought a rental car from a dealer and not known it was a rental. I think they called them program cars. Some were lease turn-ins, some were rental cars.
I have not looked at rentals in years so I don't know what mileages they run up before selling.
I don't think the deals are there like they used to be.
I bought them all under 30k miles and drove them over 150k without issue. Usually any recalls were taken care of before I got the car.
Now not many rental companies sell, maybe Enterprise. At one time dealers in had a deal to buy back rentals and sell the rentals and that's when most stopped having a car sales lot.
Some of you might have bought a rental car from a dealer and not known it was a rental. I think they called them program cars. Some were lease turn-ins, some were rental cars.
I have not looked at rentals in years so I don't know what mileages they run up before selling.
I don't think the deals are there like they used to be.
Last edited:
Perception is has far more to do with resale value then any other factor.
Originally Posted by RayCJ
Originally Posted by WhyMe
I been looking at Hyundai's sedans. I notice a lot of them are used in car rental fleets. This concerns me as my thoughts are that being perceived as a rental car brings done the resale value. So is this a real concern?
I can also see things the other way around... Any line of vehicles deemed endurable enough to withstand the rigors of being a rental car, can't be too bad. Let's face it, rental cars are driven pretty hard and get only minimal maintenance for their short lifetime as a rental vehicle. The rental company will stay away from anything that has a track record of early failure. They will also stay away from vehicles with a disproportionately high depreciation rate.
That said, I don't think I would ever purchase an out of service rental car but, that's a whole different ball of wax.
Ray
You forget that they have factory warranties in the first few years. Plus the rental companies don't care, they buy them at a discount and then get rid of them after a couple years when they've made their money. Remember they're looking at 80-90% utilization, so even at the low end of 80%, a cheap $30 day car still yields over 8k a year. They've made their money after a couple years. It's already suffered depreciation just from being a rental car. Most things in a car start to fall apart once they're in the 50-100k range and that's when rental car companies get rid of them, just before that.
Originally Posted by WhyMe
I been looking at Hyundai's sedans. I notice a lot of them are used in car rental fleets. This concerns me as my thoughts are that being perceived as a rental car brings done the resale value. So is this a real concern?
I can also see things the other way around... Any line of vehicles deemed endurable enough to withstand the rigors of being a rental car, can't be too bad. Let's face it, rental cars are driven pretty hard and get only minimal maintenance for their short lifetime as a rental vehicle. The rental company will stay away from anything that has a track record of early failure. They will also stay away from vehicles with a disproportionately high depreciation rate.
That said, I don't think I would ever purchase an out of service rental car but, that's a whole different ball of wax.
Ray
You forget that they have factory warranties in the first few years. Plus the rental companies don't care, they buy them at a discount and then get rid of them after a couple years when they've made their money. Remember they're looking at 80-90% utilization, so even at the low end of 80%, a cheap $30 day car still yields over 8k a year. They've made their money after a couple years. It's already suffered depreciation just from being a rental car. Most things in a car start to fall apart once they're in the 50-100k range and that's when rental car companies get rid of them, just before that.
twouvakind
Site Donor 2024
Hyundai and resale value, an oxymoron to say the least.
I do see certain cars as typical of rental fleets. The Ford fusion is among them. I'm quite sure the price of used Fusions reflects that.
It is also true that rental cars can go anywhere. No need for 4WD.
It is also true that rental cars can go anywhere. No need for 4WD.
Last edited:
Originally Posted by addyguy
Resale value on any car is very low, cars in general depreciate badly. With so much over-capacity in the industry, its no wonder.
I would never buy a vehicle based on resale value. Buy the vehicle that works best for you, and look to keep it 7+ years. Any other scenario costs you huge.
^^^ This!
Resale value on any car is very low, cars in general depreciate badly. With so much over-capacity in the industry, its no wonder.
I would never buy a vehicle based on resale value. Buy the vehicle that works best for you, and look to keep it 7+ years. Any other scenario costs you huge.
^^^ This!
Have three rental Hertz's in extended family. All HyunKia's no probs with any of em. Hertz drops em on the market way lower than Enterprise. Would I buy new? After my experience I'll never buy a new car again. They're not high end tho. Soul+, Optima LX and the base Accent hatch.
IMO a one year old rental at slightly above half price is a far better than a three year old lease return. At least they got minimal servicing.... and a one year old car from a dealer is a rental at a higher price
IMO a one year old rental at slightly above half price is a far better than a three year old lease return. At least they got minimal servicing.... and a one year old car from a dealer is a rental at a higher price
Last edited:
- Status
