Hertz is planning to offer a new three-year, 100,000-mile warranty to people who buy certified used cars from its former rental lots.
Hertz said in an Aug. 25 announcement that it will offer an “industry-leading protection” that includes “a 3-Year/100,000-Mile Powertrain Limited Warranty on eligible vehicles at no additional charge.” The new warranty “offers substantially longer coverage than the standard warranties offered by many leading competitors,” the company added.
Hertz said it is offering the new warranty because people are keeping their cars longer than ever as new vehicle prices continue to rise. The company noted that the U.S. National Highway Traffic Safety Administration says the average age of a car on U.S. roads is almost 13 years old.
“Consumers are keeping vehicles longer and placing greater importance on reliability, protection and long-term value,” said Jeff Adams, Executive Vice President of Hertz Car Sales. “100K Mile Protection reflects our commitment to helping customers buy and own their next vehicle with greater confidence.”
The USA TODAY Cars team took a look at what you need to know about Hertz’s new warranty program and why former rental cars can offer good value for car buyers looking for deals.
What Does the New Hertz Warranty Cover?
Hertz said the warranty will provide coverage for “specified major powertrain components” on vehicles that are less than five years old and have less than 75,000 miles on them at time of sale.
Hertz’s covered powertrain components will include the following:
- Engine
- Transmission/transaxle
- Drive axle
Hertz said the warranty will be good for three years from the date of purchase of one of its certified used cars. Owners will have to pay a $100 deductible for each covered repair visit.
The company said in some cases, drivers who bring their cars in for covered repairs would be eligible for additional complimentary benefits such as rental-car and travel-breakdown reimbursement.
Why Might Former Rentals Offer Value for Car Shoppers?
Former rental cars have long had a reputation for being in worse shape than other types of used cars because of the theory that drivers will not take care of them as well as people who own or lease their vehicles.
But Adams noted that his company has a “large selection of single-owner, near-new vehicles that are typically one year old or newer.”
Consumer Reports also said in a post on its website that buyers should not automatically rule out former rentals when they are shopping for used cars.
“Used rental cars can be priced very competitively, with a wide selection of available models under $20,000,” says Michael Crossen, lead technician at Consumer Reports’ Auto Test Center. “Depending on which company you buy from, used rental cars can also come with warranty protections that can reduce financial risk.”
Crossen added: “If you’re buying a used rental car, we recommend buying from one of the biggest companies for extra protection and the widest selection of models. But you still need to closely review the terms before you buy.”
What Benefits Do Rental-Car Buyers Have?
Consumer Reports identified benefits that people who buy used cars from major rental companies like Hertz can reap:
- Warranty protection may be available: Consumer Reports says some former-rental cars may be new enough to still have their original factory warranty. Major rental companies like Hertz, Enterprise and Avis also typically offer a 12-month/12,000-mile limited warranty from the time of purchase.
- Haggle-free price: Most rental companies offer competitive pricing on used cars because they are eager to turn over their rental fleets.
- Easy return options: Most rental companies will allow you to return a used car within a week of purchase if you change your mind. Consumer Reports said Enterprise will buy the car back from you within the first week or 1,000 miles after the initial purchase. The group said Hertz will rent you the car for three days at a special rate for an extended test drive.
- Trade-ins and financing options: Some rental companies will accept trade-ins when shoppers are purchasing used cars, Consumer Reports said. Some also have their own financing companies or work with multiple lenders to provide car shoppers with options.
Warranty terms, eligibility and return policies can vary. Review the written agreement and vehicle history before buying.
Keith Laing is an automotive reporter on the National Trending Desk at USA TODAY. Contact Keith at [email protected].
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