How to hunt down a used-car deal from a rental company like Hertz, Enterprise during coronavirus

As Hertz offers to sell thousands of its cars at steep discounts and millions of Americans face financial uncertainty due to coronavirus, now might be a good time to hunt for bargains from rental car companies. 

“There are definitely good deals out there,” said Rick Ricart, president of the pre-owned vehicle dealership Ricart Automotive in Ohio. “Rentals are down, and rental car companies might be getting aggressive to cut their losses.”

But there are also things to look out for. 

Pouncing on a used-car deal just because you see an alluring price could leave you in a financial bind down the line. And with cases of COVID-19 ticking up, buyers should take extra precautions before taking off in a car previously driven by dozens or even hundreds of other people. 

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Here’s how to smartly and safely find a used-car deal from a rental company in the age of COVID-19:

What makes a good deal?

Price is No. 1. It’s the primary reason to consider a late-model used vehicle. It’s also important to compare the cost offered by the rental car company to what you’d pay for a new model sold by the manufacturer. 

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“If you can get a new vehicle for a lower monthly payment than buying a used rental car, that’s a no brainer,” Ricart said.

Some manufacturers are offering zero percent financing deals for five years to get rid of excess new-car inventory due to the pandemic. It’s rare to find zero percent financing on used cars. Interest rates also tend to be higher on used cars due to increased risk. That could offset even more of the difference. 

The second thing you should pay attention to is how many miles the vehicle has. Anything with more than 15,000 miles per year could be a red flag, Ricart added.

Cars sold by Enterprise spend one year as a rental, on average, before being put up for sale, the company says. Hertz has said that many of its vehicles have racked up between 25,000 and 40,000 miles.

A search on the Hertz website, within 1,000 miles of New Orleans, found more than 30,200 cars available Tuesday. A 2018 HyundaiAccent SE Sedan with just over 42,000 miles was selling for $10,856 – $4,139 below market price, according to website iSeeCars.com.

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Mileage tells only half the story though. Where those miles occur is also key.  

Rental cars are often driven on long road trips over highways. And highway miles aren’t nearly as damaging on vehicles as city miles, according to Kelsey Mays, senior consumer affairs editor at Cars.com.

In city driving, vehicles are constantly stopping, starting and going over bumps. You’ll find city miles more often on cars bought from private owners that were commuting through neighborhoods and city blocks.  

“If you’re getting a car with a lot of city miles and then you’re potentially in for a lot of wear and tear,” Mays said.

On the highway, where most rental cars are driven, roads are smoother. 

What about safety during a pandemic?

​​​Hertz, Enterprise and Avis have websites that let you shop around your area without leaving your home. They also offer delivery services to cut down on face-to-face contact, and each has rolled out new cleaning processes in the wake of the coronavirus.

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Still, experts say: If you’re going down to check out the lot in-person, don’t forget your hand sanitizer.

“Do your own disinfecting if you buy one of those cars,” said Oren Weintraub, founder of Auto Authority, a firm of car brokers and buying consultants. “But it’s good to speak with someone in authority at the dealership to confirm whether it’s been disinfected and to what degree they disinfect the car.”

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