The COVID-19 epidemic has caused many people to avoid public transport and instead buy cars, leading to a recent increase in sales of used cars.
Now maybe a good time to buy a used car because several car rental companies, including Hertz, are going bankrupt and selling their used rental cars cheaply. In fact, Hertz must unload 200,000 vehicles by the end of 2020.
If you research, you can find used, high-quality rental cars, still in good condition and the number of kilometers traveled is low. And you are likely to get a significant discount when buying from a car rental company like Hertz instead of buying a new car from a res. Just keep in mind that the interest rate for car loans is higher for used cars.
On the other side, premiums are often lower for used cars, but not always. Some insurance providers will offer you lower premiums than others, which is why it’s important to shop around.
With Insurify, you can compare custom prices for used cars from 20 different insurers. It’s the easiest way to get the best car insurance offer for your used car.
7 steps to buying a car from Hertz
According to the U.S. Securities and Exchange Commission, since Hertz filed for bankruptcy in May, the company has been forced to sell nearly 200,000 cars before the end of the year to repay its lenders. That could mean a cheap deal for a used car from Hertz. If you want to take advantage of this situation, here’s how to start buying a used car from Hertz.
1. Evaluate your budget
The first step to buying a used car is to understand what you can buy.
Your monthly payment will depend on the purchase price of the car, the APR you qualify for based on your credit score and loan term. You can use the loan calculation tool to determine the maximum sticker price you can pay based on a monthly payment that fits your budget.
Keep in mind that Hertz has a non-bargaining price policy, which means you won’t be able to negotiate. However, they will give you a low price for your next car immediately, so you can save yourself the hassle of trying to bargain.
2. Choose the right car for you
Now that you know what you can afford, it’s time to choose a vehicle.
Do you need an SUV with an all-wheel-drive system or do you prefer a compact car with good fuel economy? Do you think of a manufacturer, such as Nissan or Hyundai? Use Hertz’s Car Sales website to search for their ad space by price and location, or to a Hertz car sales location near you.
3. Understand your insurance costs
Your monthly car loan payment isn’t the only expense you have to worry about. You’ll want to take into account the amount of your auto insurance premium when deciding how much you can buy. You can use Insurify to estimate the insurance rate for the car of your choice. Some insurers may offer lower premiums than others. With Insurify, you can compare premiums side by side, so you’re sure to get the best possible premium.
4. Pre-approved for Auto Loans
While you can get finance through Hertz’s partners, it’s always a good time to shop with the lowest APR.
That’s especially true if you have imperfect credit as interest rates can vary significantly from one lender to the next. In the first quarter of 2020, the average APR for a borrower with good credit was just 4.29%, while APR for a borrower with poor credit was 20.45%, according to Experian data.
5. Check vehicle history and warranty reports
Many of Hertz’s used cars are still under warranty at the factory, and all Hertz certified vehicles include a 12-month/12,000-mile drive system warranty.
If you want more peace of mind, you can also purchase a Hertz car protection package. But even with additional safeguards, you’ll want to get a car history report from Carfax to know about any past damage to your vehicle. This can affect your decision to buy a car. Finally, you’ll want to test drive to make sure the car feels right for you.
6. Buy a car
Before you continue to buy the car of your choice, check online for hertz car sales coupon codes.
Currently, you can save $350 on second-hand car purchases from Hertz if you sign up for a rewards membership and AAA members can get a $300 discount when proof of membership is available.
If you’re not entirely sure you’re ready to continue with your purchase, Hertz has a Rent2Buy program that lets you try your car out for three days at a special rental price. If you choose to buy a car, Hertz will rent a car for free. And if you want a contactless car-buying experience, Hertz offers home delivery in eligible states.
7. Arrange for an inspection
If you choose to use the Hertz Rent2Buy program, you should check your car during your three-day trial period.
Even after you buy the car, Hertz offers a buy-back guarantee that allows you to return to the car within seven days or 250 miles, which comes first. During this time, an independent examination will tell you that the car has no problems.
Buy affordable car insurance for your new trip
Whether you buy a Kia or an Infiniti from a car dealer or from hertzcarsales.com, you’ll need car insurance before you can legally drive your car. The only states that don’t require insurance are New Hampshire and Virginia, and even in these states, having car insurance is essential.
Usually, used cars have cheaper insurance prices, but this depends on many factors, including the value of the car and the accompanying safety features. Your rate will also depend on your driving record and in most states, your credit score.
Since there’s a lot to do with determining car insurance premiums, including the discounts you may be eligible for, it’s best to compare car insurance premiums side by side. With Insurify, you’ll only need to enter your information once to get access to custom reviews from a variety of insurers. You can even switch between insurance options to find a policy that fits your budget.