Many businesses today rely on consumer vehicles to get work done. Fortunately, for buyers looking for a deal, these vehicles are not kept in service very long. After just a year or two, the vehicles are replaced and put up for sale. These cars represent a real opportunity as the original owner has taken the hit on depreciation leaving a recent model year vehicle at an affordable price. If you're looking for an affordable vehicle, it sometimes makes sense to consider demo cars, fleet cars or rental cars when making a purchase.
Demo cars are vehicles used by dealerships for a few different purposes. They could be given to sales associates as daily drivers or as test-drive vehicles for interested buyers. These cars are used heavily over a short period of time and then are sold at a discount once they have accumulated a few thousand miles. Naturally, as these cars were used by the dealership, they will be available for sale at the dealership.
Businesses often maintain a have fleet of vehicles used as company cars or employee vehicles. They might be used to transport a worker to and from the job or to sales calls, or to transport goods from one facility to another. While it serves the company's purpose to own the cars, it serves no purpose to keep them until repairs become an issue. For this reason, the turnover of the fleet is a relatively regular occurrence. When these cars hit the used market, they are usually available at a deep discount. Fleet cars are usually disposed of at auction but, in rare cases, may be made accessible to the general public, either at a dealership or directly from the company.
Rental car companies such as Budget, Avis or Enterprise maintain massive fleets of vehicles. Like demo cars, rentals are used heavily for a brief time and then replaced in an effort to provide the latest models to rental customers. Unlike fleet vehicles, these cars are most often merchandised by the rental companies themselves and can often be obtained at very reasonable prices.
The Benefits of These Vehicles
There are several benefits of buying demo, fleet or rental cars. While that doesn't necessarily make it the best option for you, it is an option worth considering.
Benefits extended to the purchasers of demo, fleet or rental cars include:
Affordability - These vehicles are usually priced hundreds or thousands of dollars under what the new model would cost.
Well maintained - Most businesses take care of their vehicles carefully, keep them in good shape and perform maintenance regularly.
Readily available - There are always fleet or rental vehicles available for purchase, and you can find an ideal car with just a bit of looking.
But It's Not All Sunshine and Peppermints
There are some downfalls to purchasing this type of vehicle. As you research, keep an eye out for the following potential issues.
Higher miles - Due to heavy use, most business vehicles tend to have higher miles than other cars of the same year model
Fewer features - Businesses often don't pay for extra features like a private consumer would meaning a more basic version will usually be the only available.
Accidents don't show - Many history reports won't show accidents that occur in business vehicles. Many companies handle collision repairs with cash as it is more cost effective when compared with an increase in insurance premiums.
Used business vehicles present savvy buyers with a real money-saving opportunity. While higher mileage and fewer upgrades may affect future resale, saving hundreds or even thousands of dollars now may make them well worth a look. As with any car deal, keep your eyes open for quality deals, and always do your research before making a purchase.