Should You Buy a Used Rental EV?

Some rental-car companies are retiring EVs and selling them at reasonable prices.

Bob Sorokanich | 

Oct 21, 2024 | 3 min read

Tesla

It seems like electric cars are showing up everywhere lately, including in rental-car fleets. That could be good news for drivers who want to rent them, but it also creates opportunities for those looking to buy an electric vehicle (EV).

Rental companies typically retire and sell their cars once they've reached a certain age or mileage. With many rental EVs now hitting their sell-by dates, the used-car market is seeing ex-rental EVs pop up for sale, some at attractive prices. If you're hunting for a discount on a pre-owned electric car, here's what you need to know about buying a former rental.

Former Rental EVs Can Offer Competitive Prices

Some of the more common former rental EVs for sale in the market these days are Teslas offered by Hertz. In 2021, the car-rental giant promised to add 100,000 EVs to its U.S. fleet. Those vehicles are now hitting the end of their rental tenure and going up for sale.

In an interview with CNBC, car-market expert Yossi Levi of automotive-information company Car Dealership Guy said used electric vehicles that are about three years old offer consumers some of the best value in the used-car market today.

As of June 2024, Hertz had many ex-rental EVs at "no haggle" pricing, with an average price of about $25,000, according to CNBC. Hertz-certified used EVs typically undergo a 115-point pre-sale inspection and come with a 12-month or 12,000-mile powertrain warranty and a seven-day or 250-mile buy-back guarantee.

Used EVs Can Be Trickier to Evaluate Than Gas Vehicles

Of course, a rental car can rack up a lot more miles than the average privately owned vehicle, and you should factor that into your decision.

"Used EVs are tricky due to the mechanical nature of EVs," said Tom McParland, founder and owner of Automatch Consulting, a concierge car-buying agency. "Unlike combustion cars, where you can check for fault codes, look for sludgy oil, or listen for odd noises as potential red flags for engine problems, there isn't yet a consistent way to judge battery condition before you buy."

Some sellers, McParland notes, will offer a battery-health report, showing how much driving range the car has lost since it was new. This is often limited to name-brand dealers specializing in your model, however.

McParland also pointed out a risk inherent in buying any ex-rental car, EV or otherwise.

"Rental companies often fix cars in-house," he said, "so if the car was in a collision, that event may never show up on a history report."

Have Any Used Car Checked Out Before You Buy

No matter the type of vehicle or the entity where you're buying it, McParland encourages used-car customers to get a pre-purchase inspection from an independent repair shop before deciding to buy.

And beware the suspiciously good deal, he warned.

"If a car is marketed on the cheaper end of the spectrum," he said, "there is probably a reason for that. … It's up to the buyer to decide whether or not the increased risk is worth the savings."

Bob Sorokanich

Bob Sorokanich is a car-obsessed journalist and editor who manages to maintain an old Mini Cooper and a love affair with automobiles while living in New York City. When he's not thinking about cars, he's riding his motorcycle, and when he's not riding his motorcycle, he's anticipating his next joy ride.