 |
Why do car rental companies sell their cars?In: Car Rentals |
[Edit] |
Answer
What I heard is that they don't want to deal with cars older than 3-4 years because they'll have to pay for repairs. Therefore, the only way to always have new cars is to sell the old ones.
** Rental companies must circulate 1-2 years to keep current with what the manufactures make. All rental compaies MUST purchase a certain amount of NEW manufactured cars- there fore they must get rid of the 'older ones' to dealerships to make room for that new stock. To re-coup the purchase costs, the sell the higher miles ones (typically 10-40k miles). (about 50-70% of cars you see at dealerships are purchased rental cars)
As for 'not wanting to pay for repairs' .... rental companies DO make repairs. The ones they do not is if the total estimate of the damage exceeds the value of the car.
-jsparkles
First answer by ID1144222948. Last edit by Jsparkles. Contributor trust: 1 [recommend contributor]. Question popularity: 17 [recommend question]
|
Also see on Answers.com Research your answer: |
Answers.com > Wiki Answers > Categories > Travel > Car Rentals > Why do car rental companies sell their cars?
Our contributors said this page should be displayed for the questions below. (Where do these come from ) |
| If any of these are not a genuine rephrasing of the question, please help out and edit these alternates. |
