When it comes to buying a vehicle, rental car dealers provide the most savings to customers, according to a study by car search engine iSeeCars.com.
Due to increased demand and a limited inventory as a result of the COVID-19 pandemic, used car prices have risen in 2020. iSeeCars.com analyzed over 8.5 million used car sales across the three dealer types of traditional local dealerships, virtual dealerships, and rental car companies and found that rental car dealers consistently provide the greatest savings, while local dealerships are priced close to market value and virtual dealerships are priced above market value.
“As contact-free online dealers have gained popularity as a safe alternative to traditional dealerships, and as struggling car rental companies unload their inventory, consumers might be considering these alternatives to traditional brick and mortar dealerships,” iSeeCars Executive Analyst Karl Brauer said in a statement. “It’s important that used car shoppers compare prices across these types of dealers if they want to get the best deal possible on a used car.”
On average, rental car dealers provide the biggest savings, with cars priced 1.6% or $303 below the market value of a used car.
“Because rental car companies buy their cars at a high volume and at a discounted rate, they’re able to sell these vehicles for less to consumers, and they price the vehicles to sell in order to move their inventory quickly,” Brauer said. “Additionally, rental car companies are also more likely to discount their vehicles given the financial hardships they are facing from the COVID-19 pandemic.”
The vehicle that has the greatest savings is the Chevrolet Silverado 1500 pickup truck, which has a 6.6% savings amounting to $2,016. Two popular sedans, the Honda Civic and the Nissan Altima also offer significant savings when consumers purchase through a rental car dealer.
Besides saving money, rental vehicles also benefit from strict maintenance schedules and routine inspections.