Canadians are saving money while car shopping by buying used cars that fall under the following unique categories. These vehicles are often well maintained, have lower mileage, and offer considerable savings.
Common Benefits of Buying a Used Repo, Rental, or Demo Vehicle:
1. Cost Savings
Repo vehicles are often sold at a discount, as the goal of the lender or bank is to recover the outstanding loan balance. This can make repo vehicles more affordable than comparable used cars in the open market.
Rental car companies often sell their older vehicles at competitive prices to make room for newer additions to their fleet. This can save you a substantial amount of money, especially when considering the rapid depreciation that new cars experience in their first few years.
Demo vehicles are nearly new vehicles that have been used by dealers for promotional purposes, typically for less than a year. They are sold at a significant discount compared to a brand new model.
2. Newer Vehicles / Low Mileage
Many repo cars are relatively new and in good condition. This is because the lenders want to maximize their resale value, so they often repossess vehicles with minimal wear and tear.
Rental car companies frequently update their fleets with the latest vehicle models to attract customers. This means that you have a good chance of finding a relatively new vehicle, often less than two years old, when shopping for a used rental car.
Demo vehicles are lightly used by dealer employees or for test drives and promotional purposes. These vehicles are usually the top of the line trim with very low mileage.
3. Transparent History / Well Maintained
Repo cars typically come with a more transparent history compared to some used vehicles sold by private sellers. The reason for repossession is usually straightforward, such as non-payment of the loan. This clarity in the vehicle's history can make it easier to assess the car's condition and potential issues.
Rental car companies need to make sure their vehicles are in good condition for their customers, so they regularly maintain them to keep them in top shape.
Demo vehicles have only ever been owned by the dealership, so you can be 100% confident in their history and maintenance records.