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Old 05-26-2020, 01:06 PM   #61
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I wonder if this will ripple over from the used vehicle market to new vehicles. So far from what we've seen, most new vehicle manufacturers/dealers are holding firm to close to MSRP, less a small discount for incentive.

Our DD is in the market for a new vehicle, but we're seeing less incentive to sell new vehicles now than there was back in February. It may take a few months for the new vehicle market to shake out. By that time, new vehicle models for 2021 would normally start coming out. Gotta wonder about that too.
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Old 05-26-2020, 02:19 PM   #62
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I wonder if this will ripple over from the used vehicle market to new vehicles. So far from what we've seen, most new vehicle manufacturers/dealers are holding firm to close to MSRP, less a small discount for incentive.

Our DD is in the market for a new vehicle, but we're seeing less incentive to sell new vehicles now than there was back in February. It may take a few months for the new vehicle market to shake out. By that time, new vehicle models for 2021 would normally start coming out. Gotta wonder about that too.
I would not be shocked if the factory shutdowns and the difficulties getting restarted mean that the supply of new vehicles is modest hence the low discounts. If they successfully start cranking out loads of new cars into a high unemployment economy, you may well see discounts grow.
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Old 05-26-2020, 02:24 PM   #63
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Just read an article that France is bailing out their auto manufacturers and is offering a $7K rebate to purchasers of EVs and $2K for hybrids. According to the article, they have ~400K cars that are built and ready to be sold just sitting.

Not sure if the US manufacturers are in the same boat.
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Old 05-26-2020, 04:41 PM   #64
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I am shocked at the number of people that would consider buying a rental car. The amount of abuse dished out to those things, omg.
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Old 05-26-2020, 04:51 PM   #65
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I am shocked at the number of people that would consider buying a rental car. The amount of abuse dished out to those things, omg.
Too narrow a perspective. Sure, there are a$$holes who routinely abuse rentals. But I've been renting cars for business and vacation travel for half a century and I've never abused one. It's just transportation when you're away from home. I have to think I'm fairly typical, so the abusers must be a minority.

For my two friends who have been buying from rental fleets all their lives, there have been no lemons and all good deals. So that's just an anecdote but still a data point.

But I suppose I have to admit that I'm one of those who think most people are good. That gets me in trouble once in a great while, but most of the time it keeps my stress level way down low.
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Old 05-26-2020, 04:54 PM   #66
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I wonder if this will ripple over from the used vehicle market to new vehicles. So far from what we've seen, most new vehicle manufacturers/dealers are holding firm to close to MSRP, less a small discount for incentive.

Our DD is in the market for a new vehicle, but we're seeing less incentive to sell new vehicles now than there was back in February. It may take a few months for the new vehicle market to shake out. By that time, new vehicle models for 2021 would normally start coming out. Gotta wonder about that too.
It has to, yes. It will be a buyer's market for cars for perhaps the next few years.
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Old 05-26-2020, 04:59 PM   #67
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I am shocked at the number of people that would consider buying a rental car. The amount of abuse dished out to those things, omg.
Buy a 2 to 3 years old used car at a dealership and pull a Carfax. Half the time the original owner is listed as "Fleet", and guess what that means. In good times, their probably are upwards of 2 million "fleet" cars entering the used market annually. Guess where they go......
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Old 05-26-2020, 05:47 PM   #68
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And then there is this:
https://www.latimes.com/business/sto...arked-on-ships

It says that normally ships carrying new autos dock, unload, then leave. Auto business is normally a "just-in-time" kind of thing. Now, ships are waiting to dock. Once they do, dealers and rental agencies don't want or need them. So manufacturers are renting lots to stockpile.
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Old 05-26-2020, 06:37 PM   #69
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I think you need to wait until October when 2021 models come out. Big dealers have to take their allotment so they should be willing to lower prices on the 2020 models they haven’t sold.
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Old 05-26-2020, 07:07 PM   #70
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Getting back to the original statement about used car prices going to decrease because of the Hertz bankruptcy.

It's going to be a couple of months before the court hearing where the judge gets a plan of action on what to do with this company.

Hertz will reorganize and thousands and thousands of vehicles will be liquidated. And they will come back as a smaller, leaner company.

I also expect many of the other rental car companies to go to school on what Hertz has recently done wrong and avoid doing such a thing. Enterprise will continue as the top dog in the industry.

In the meantime, Hertz will no longer be purchasing additional vehicles, and those rented out will be getting higher mileage. Eventually cars going to auctions will be purchased at "advantageous prices", and they'll be good buys--for those that like to drive vehicles that are a little less luxurious.

The automobile companies have been counting on rental car companies to purchase around 15% of their production. Production has already been down due to SUV's being the hotter end of the retail market. I can see automobile production to be taken down lower than they are even now.

I've been watching our local Hertz rental lot close to my house. They've seldom had any cars on the lot except on weekends. We do have an Enterprise lot in town, and they too appear to be doing well. No other competition is out there other than the car dealerships.

Whenever the Corovid situation is settled and the traveling salesmen get back on the road, they may have difficulties obtaining rental cars locally and in far off cities. They provide a service in most times that's very much needed--but few salesmen are presently out on the road right now.
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Old 05-26-2020, 09:12 PM   #71
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And then there is this:
https://www.latimes.com/business/sto...arked-on-ships

It says that normally ships carrying new autos dock, unload, then leave. Auto business is normally a "just-in-time" kind of thing. Now, ships are waiting to dock. Once they do, dealers and rental agencies don't want or need them. So manufacturers are renting lots to stockpile.
Normally, in the US, automobile inventory ebbs and flows with the seasons. January-April are slow and inventory builds up. Then they sell it off through the summer and into the end of the year. This year automakers had more than normal amounts of inventory as Coronavirus started to shut things down so they have a problem on their hands, even with the reduced production due to CV shutdowns.

Now some big automakers are shutting production, ostensibly due to a failure of their supply chain to have the necessary parts available and the auto workers union is applying pressure at some plants to shut production due to a couple of employees who tested positive. But the UAW only represents the workers in principle - often they are actually doing the bidding of the automakers themselves. In other words, corruption at the expense of the workers. If Ford or GMC had to admit they had stopped making cars because they couldn't sell enough of them it would tank their stock even worse. So, they make up excuses for stopping production.

The auto dealers have contracts and take out loans to buy the new production so the automakers get to sell the vehicle right off the production line, at least until the dealers have too much inventory.

Oddly enough, Tesla is making cars faster than ever before and has a huge order backlog and very little inventory in most areas! They were supply-constrained before Coronavirus hit and they are still supply constrained even with both factories in full production. Their new Model Y has the highest demand and you might have to wait a few months to get one.
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Old 05-26-2020, 10:59 PM   #72
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Carl Icahn has really disappointed me, not the investment whiz he was touted to be.
Maybe I can get a Hertz car as a dividend
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Old 05-27-2020, 07:44 AM   #73
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I am shocked at the number of people that would consider buying a rental car. The amount of abuse dished out to those things, omg.
I've had a couple and both performed well and were in good shape when I bought them. Maybe I was lucky.
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Old 05-27-2020, 08:06 AM   #74
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I've had a couple and both performed well and were in good shape when I bought them. Maybe I was lucky.
Same here.

Actually I've heard far more complaints about getting a lemon from people who bought new cars than from those who purchased a rental. Probably just luck.
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Old 05-27-2020, 11:02 AM   #75
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Same here.

Actually I've heard far more complaints about getting a lemon from people who bought new cars than from those who purchased a rental. Probably just luck.
Makes sense. Rental cars that are resold have most bugs worked out of them (if any). I own a vehicle (truck) that was fleet and runs great. The *only* issue I have ever had with a car purchase was a brand new one that was eventually bought back under the state lemon law. I wouldn't hesitate to buy another fleet vehicle.
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Our recent rental (or off lease) crpurchase
Old 05-27-2020, 11:40 AM   #76
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Our recent rental (or off lease) crpurchase

In early 2019, we decided we needed a "van" type vehicle with the potential for a wheelchair ramp and possible a powered lift. Our aging 2012 Santa Fe was not suitable.

We found a 2019 Dodge Caravan GT with 17,000 miles on it at Enterprise Auto Sales. The van was "off lease" and may have been a rental or a fleet car. The folks selling the van (Enterprise Auto Sales) had no way to tell what its previous service duty was since they just resell turn ins after they pass reconditioning internally.

The van (V6, 6 speed auto trans) has every option available, including leather, power seats (driver and passenger), climate control, two A/C handlers, bluetooth radio, factory NAV, remote start, seat storage in the floor, and many more options. Factory MSRP was mid-$30'sK. We paid $21,000+ TT&L for the van. The van was immaculate inside and out, and came with carpeted floor mats and a rear cargo pad.

Enterprise gives you a 7 day return policy if you decide to change your mind on the purchase. You are good for 1,000 miles in that week. This is a no questions asked" return policy. If you decide to return the vehicle, there is a $200 fee for use of the vehicle. This policy is very reasonable.

I took the van to a local Chrysler/Dodge dealer that week and asked for an evaluation of it. I paid them $150 for that assessment. The only things not right with the van included, 1. the spare tire was underinflated, and 2., there was a small chip in the windshield, which I did not see.

Enterprise replaced the windshield at no cost to me and used OEM glass @ $700+(I have the receipt as I chose the shop). I put air in the spare tire.

Also, Enterprise included a 12 month, 12,000 mile full warranty (parts and labor) with the purchase. The van also has the remaining factory warranty. To date, now at 34,000 miles, we have not had any issues with the vehicle. We have driven it to Wisconsin and back to Texas and average 26 MPG flat out at 70+ MPH with the A/C on.

I'll go this route again of we need another "near new" vehicle.
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Old 05-27-2020, 11:54 AM   #77
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I assume you must purposely trash them, as generally folks will be extra cautious when renting as to not get a ticket, into an accident, or damage the vehicle which could result in additional expenses and headaches.
I'm a pretty laid back driver in my own car and in rentals. But, I have been in rentals with business colleagues who have driven those cars as if they got a bonus if they broke something - the brakes, suspension, or transmission in particular.

Personally, I would never buy a rental car. (I would never buy a "CPO" car either as I've learned that it is mostly a marketing gimmick.)
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Car prices decreasing due to Hertz unloading vast number of cars
Old 05-27-2020, 12:44 PM   #78
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Car prices decreasing due to Hertz unloading vast number of cars

Iíll add a joke I heard. What is the difference between a rental car and a Jeep?

A rental car can go anywhere!

Based on my use, I wouldnít want a rental. Plenty of times Iíve asked for a AWD or something with more ground clearance as my work sites can be pretty remote. They donít always have them.
There has been more than a few times dragging bottom on dirt/gravel roads (just donít ding up the body panels). Also test for burnouts.

I drive a sporty car but I treat it much more gently than a rental.
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Old 05-27-2020, 12:47 PM   #79
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. Also test for burnouts.
Why? You didn't get this out of your system in your teenage years?
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Old 05-27-2020, 01:30 PM   #80
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I'm a pretty laid back driver in my own car and in rentals. But, I have been in rentals with business colleagues who have driven those cars as if they got a bonus if they broke something - the brakes, suspension, or transmission in particular.

Personally, I would never buy a rental car. (I would never buy a "CPO" car either as I've learned that it is mostly a marketing gimmick.)
Whatís wrong with CPO? Iím looking at one or two right now. Under 10k miles and over 25% off Msrp. 2019 models. Something to be wary of?
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