Rental car company Hertz has filed for bankruptcy amid the coronavirus pandemic and is now selling its inventory of used cars online at a discount price.
There are several ways to purchase used rental vehicles, but now may be the best time to take advantage of the rental car company’s sale: Hertz is currently selling its cars at an average of 8% below the car’s market value, according to car search engine and automotive research firm iSeeCars. This translates to an average of $1,389 in savings, which is a 43.3% increase from April’s average of $969.
iSeeCars also compiled a list of 25 vehicles posted by Hertz Car Sales that are currently being sold for the highest percentage below market value, therefore offering the greatest discounts.
The list is topped by the BMW 7 Series, which is currently being sold at 14.7% below its average market value with Hertz. This translates to about $6,877 in savings at an average price of $42,680.
To compare, a new 2020 BMW 740i sedan currently has an MSRP of $86,800.
“The vehicles with the greatest discounts are a mix of vehicle types across a wide range of price points, so shoppers in the market for a late-model used vehicle should consider these cars,” iSeeCars CEO Phong Ly said.
According to the iSeeCars study, rental cars sold in May had logged 31% more miles than used cars from the average dealership. However, cars under specific segments that aren’t popular as rental vehicles, such as luxury cars, can often have a lower mileage, according to Ly.
iSeeCars analyzed over 20,000 used cars from the 2017 to 2019 model year that were listed by Hertz Car Sales in May 2020 for the study. The prices and mileages of the cars were then compared to other used car dealerships to establish the change in market value.
Purchasing a used rental car may be a wise financial investment despite stigmas around the vehicles. Here are the 25 vehicles that are most likely to stretch the wallets of prospective used car buyers who plan to shop with Hertz:
25. Ford Focus — 10.2% below market value
The 10.2% results in an average of $1,206 in savings.
24. Chevrolet Impala — 10.4% below market value
The Impala has been discontinued by Chevy but can be an affordable option for customers looking for a roomy vehicle, according to Ly. Its 10.4% average drop in market value with Hertz is equivalent to about $1,880 in savings.
23. BMW X3 —10.5% below market value
Hertz’s 10.5% discount on the BMW X3 translates to an average of $3,502 in savings.
22. Hyundai Santa Fe Sport — 10.6% below market value
“The Santa Fe Sport is a capable SUV that appeals to budget-friendly SUV buyers and can also be found under $14,000,” Ly said. The 10.6% decrease in its market value with Hertz is roughly $1,497.
21. Mitsubishi Outlander Sport — 10.6% below market value
Benjamin Zhang/Business Insider
“These used subcompact SUVs can be found on average for under $14,000, which makes them affordable options for consumers looking to purchase an SUV,” Ly said.
The Outlander Sport’s 10.6% discount is worth an average of $1,587 in savings.
20. Volkswagen Jetta — 10.7% below market value
Hertz’s discount on the Jetta is equivalent to around $1,228.
19. BMW 5 Series — 10.7% below market value
“The BMW 5 Series midsize sedan is praised for its driving dynamics and luxurious interior,” Ly said.
It’s also likely to have less miles than a duplicate model at a typical used car dealership because potential car renters are more likely to pass on the BMW for a cheaper alternative, according to Ly.
Hertz customers can save around $4,517 on the 5 Series.
18. Ford Taurus — 10.7% below market value
The Taurus has been discontinued by Ford but still provides “savings opportunities” as a purchasable used rental car. Hertz’s Taurus listing reflects $1,987 in savings.
17. Cadillac XT5 — 10.9% below market value
The 10.9% below market value with the XT5 is equivallent to $3,688 in savings.
16. Ford Fiesta — 11.1% below market value
The Ford Fiesta’s listed price with Hertz is 11.1% — about $1,252 — below market value.
15. Nissan Sentra — 11.3% below market value
Hertz’s listing of the Sentra is equivalent to $1,263 worth in savings.
14. Chevrolet Silverado 1500 — 11.4% below market value
The Silverado 1500 is one of two pickup trucks on the compilation, and its listing — which is 11.4% below market value — is worth about $3,312 in savings.
13. Cadillac CTS — 11.6% below market value
Hertz’s CTS provides an average of $3,204 in savings.
12. Nissan Versa — 11.8% below market value
The Versa’s listing of 11.8% below market value with Hertz means savings of around $1,246.
11. Lincoln Continental — 11.8% below market value
According to Ly, a used Lincoln Continental — which has savings of around $3,467 via Hertz — may be a good choice for perspective car buyers because the vehicle has likely hsitorically been “passed up” by renters who would rather rent a less expensive vehicle.
This also means the cars likely have a lower mileage than other Lincoln Continentals at traditional used car dealerships.
10. Nissan Quest — 12% below market value
The Quest — which is listed with $1,810 worth in savings with Hertz — is the only minivan on the list. Ly recommends it for its “nice interior and smooth ride.”
9. Volkswagen Golf — 12.3% below market value
The Volkswagen Golf’s 12.3% decrease market value with Hertz makes up about $2,023.
8. Kia Forte —
12.3% below market value
Hertz’s Forte listings sit at 12.3% — or $1,468 — below market value.
7. Buick Cascada — 12.4% below market value
“Discontinued after 2019, the Buick Cascada is not a popular vehicle,” Ly said. “However, it presents significant savings for shoppers who want a luxury convertible.”
Hertz’s listings offer $2,241 in savings with its discounted used Cascadas.
6. Nissan Versa Note — 12.4% below market value
The Versa Notes’ 12.4% below market value listing on the used rental car dealership’s website is equivalent to around $1,375.
5. Toyota Tundra — 12.6% below market value
The Tundra — which has $4,714 worth in savings with Hertz’s listings — is the second and final pickup truck on the list. According to Ly, pickup tricks with car rental companies have likely been worked less than a typical pickup truck on a construction site.
4. INFINITI QX50 — 12.7% below market value
The sole Infiniti on the list is 12.7% down on market value with Hertz. This equates to about $4,145 in savings.
3. Mercedes-Benz A-Class — 13% below market value
“New for 2019, the Mercedes-Benz A-Class small sedan is the automaker’s least expensive vehicle, and a used rental car provides significant savings on top of its lower starting price to allow more buyers to enter the luxury market,” Ly said.
The A-Class’ 13% drop in market value with Hertz is equal to an average of $4,252 in potential savings.
2. Chevrolet Trax — 13.4% below market value
The Trax’s 13.4% discount offers about $1,714 in savings.
1. BMW 7 Series — 13.7% below market value
“The upcharge for renting a luxury car likely makes the BMW 7 Series an unpopular rental, so the average mileage is about half of what you would find from a typical dealer,” Ly said. “This presents significant savings on a lightly-used super luxury car.”
The 13.7% drop in 7 Series’ market value with Hertz means about $6,877 in savings, the highest dollar amount on the list.
Read the original article on Business Insider