By: Noble HorvathPosted on

It’s always best to shop around before making a purchase.

The transaction price of a new car is well over $30,000, which is a big bill pill to swallow. Used car prices are creeping upward, too. Many automakers shut down production early in the coronavirus pandemic, limiting the supply of new cars. However, as prices rise, not all used car sellers are the same. Some offer better deals than others, and a new study from iSeeCars.com lays out which places offer the best prices.



a close up of a plastic container: Colourful cars lined up in dealer forecourt

© Motor1.com
Colourful cars lined up in dealer forecourt

The publication analyzed over 8.5 million used cars sold in 2020, comparing prices of similar vehicles sold nationwide by online dealers, rental car agencies, and traditional car dealers. It discovered that rental car dealers, like Hertz, Avis, Enterprise, and others, offer the most significant savings, averaging $303 in savings than other sellers, or 1.6 percent below market value.

Dealer Type Avg Price to Market Value ($) Avg Price to Market Value (%)
Rental Car Dealers -$303 -1.6 %
Traditional Dealers +$31 +0.2 %
Online Dealers +$444 +2.4 %

A traditional dealership has a price that’s slightly above market value at $32. However, it’s far below that of online dealers, like Carvana, which, according to iSeeCars.com, has car prices that are $444 more expensive on average. One reason for low rental car prices? Rental car companies purchase a high volume of cars at discounted prices, passing those savings onto the used buyer. Also, rental car companies are facing hardships with the virus.

Used Cars Are Hot:

While used car prices are likely lowest at a rental car dealer, not all makes and models are equal. ISeeCars.com dove deeper into the data, looking at the best places to buy some of the most popular vehicles. Rental dealers are popular for cars like the Chevy Equinox and Silverado, but customers could find better deals for the Ford Escape or Hyundai Tucson online. Those wanting a traditional dealership experience should look at the Ford Fusion or GMC Sierra for the largest savings. It’s always best to shop around before making a final decision regardless of the make or model you want.

Source: iSeeCars.com

Gallery: The 8 best popular cars to buy from rental agencies as companies like Hertz offload inventory (Business Insider)



a car driving on a road: Car search engine and automotive research firm iSeeCars has compiled a list of the best used cars to buy from car rental agencies based on potential savings. On average, car rental agencies like Hertz — which recently filed for bankruptcy and is now selling off some of its inventory — offer better deals than online and local dealerships, according to data compiled by iSeeCars. The Chevrolet Silverado 1500 pickup truck has the greatest savings opportunities of any model at car rental companies, with an average of 6.6% in savings, or about $2,016. Visit Business Insider's homepage for more stories. Car search engine and automotive research firm iSeeCars has compiled a list of the 8 best used cars to buy from car rental agencies based on potential savings opportunities.Used car prices have skyrocketed amid the pandemic as new car inventories have decreased while demand for cars has increased, according to a previous iSeeCars study. As a result, the average used car price has surged 4.1% — about $941 — from July to August.There are several marketplace options for potential buyers who are also looking to purchase a used car for a good deal right now, such as checking local traditional brick and mortar dealerships, perusing online options, or going to rental car companies like Hertz, which recently filed for bankruptcy.Of these three options, on average, rental car agencies offer better deals on used cars than the other retailers: shoppers can save an average of $334 and $747 by purchasing through a rental car company instead of a local dealership or online shop, respectively, according to the study."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,"  iSeeCars' executive analyst Karl Brauer said in a statement. "Additionally, rental car companies are also more likely to discount their vehicles given the financial hardships they are facing from the COVID-19 pandemic."Hertz has until December 31 to dispose of 182,521 cars, according to a filing with the United States Securities and Exchange Commission as a part of a $650 million deal with the rental company and its lenders. As a result, some of its used cars are being sold to the public, and it's no secret that the vehicles Hertz has been selling are going for good prices.iSeeCars analyzed over 8.5 million used cars sold this year by online dealerships, rental car companies, and other used car sellers, and compared the vehicles' price tags, mileages, respective market values, and popularity this year. However, low-volume cars were not included in the study.Keep scrolling to see the 8 popular cars that come with good savings when purchased from a rental car company:Read the original article on Business Insider
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Categories: RENTAL CAR