#UsedCars #CarBuyingTips #InsuranceSurcharges
Hey everyone! 🚗💬
I just went through the paperwork for a used car I recently bought, and I stumbled upon something pretty important: if you have the choice, it’s best to buy a used vehicle that has never been on a lease or as a rental. Why, you ask? Well, I learned that insurance companies tend to charge extra for cars that have been leased or rented out.
Here’s a quick breakdown of why this might matter to you:
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Insurance Surcharges: The insurance agent I spoke to mentioned that there’s a surcharge that remains for the entire life of the vehicle. That means every time you pay your insurance premium, you could be shelling out extra just because of its past history.
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Uncertain Percentage: Unfortunately, the agent couldn’t specify how much this surcharge typically adds to your bill. Imagine budgeting for insurance and then facing unexpected costs simply because the car had a previous life as a rental or lease!
- Resale Value: A car that has been leased or rented might have a different resale value down the line, potentially affecting your future finances.
So, what can you do about it? Here are a few tips:
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Do Your Homework: Always check the history of the vehicle. Services like Carfax or AutoCheck can be valuable in giving you that peace of mind.
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Negotiate Wisely: If you find a great deal on a car that’s been leased or rented, factor in the potential insurance costs when negotiating the price.
- Ask Questions: Don’t hesitate to ask your dealership or seller about the car’s history and any potential issues it might have, including insurance implications.
Now, I’m curious: Have any of you experienced surprise costs when dealing with insurance on used cars? Or do you have tips about what to look for when buying a used vehicle? Share your stories! 💭✨
Let’s learn from each other and make smart choices when it comes to buying used cars! 🚙💡
Don’t buy a car that was formerly part of a company fleet. They have their own mechanics make repairs and nothing gets recorded or reported.
Don’t buy anything that was a rental in general. People beat up on rentals far worse than their own cars.
Meanwhile my last two cars were intentionally retired rentals and both lasted over 10yrs. Major rental companies, in my own experience, take much better care of the cars in their fleets in order to maximize “shelf life.” I’ve had amazing success with two cars purchased from Enterprise and my father has done so with 3 of his own vehicles.
Even better if you can get the service records.
INFO: if it’s only a few years old, would it not likely be coming off a private lease and if you got the service records could that lower the insurances premiums/
I would generally agree with you, but I bought a used Ford Fusion ten years ago that was a former rental and never had a problem with it other than tires and brakes (normal wear and tear). Drove it for ten years, 100k miles.
I’ve intentionally purchased 3 previously leased cars. They were all turned in early, had low miles, and were priced better than a similar used car.
I’ve had good luck with cars coming off of a 3 year lease. That they tend to be Toyo/Lexus doesn’t hurt either.
NOW you tell me!
I bought a car from Hertz and have regretted it since.
In my area the top enterprise cars go on their own used car lot. The second tier usually go back to dealerships and get the certified used tag. People pay extra for that certified used line at the dealership when they would be better off going directly to the enterprise used car lot.
Good to know! I’ll keep that in mind for my next car purchase.