What Is a Fleet Vehicle and Is It Worth Buying One?

When purchasing a car, there are a number of pros and cons that help determine your decision. It is a long-term investment and having a fruit bowl of information can give you peace of mind. Here we take an in-depth look into the question, what is a fleet vehicle? The ins, outs, and everything in between to help you get more miles for your money if you are considering buying a fleet vehicle.

What Exactly Is a Fleet Vehicle?

A fleet vehicle is generally described as any car, SUV, or truck that is not privately owned but instead is owned/used by a company, organization, or government agency for business purposes. Businesses and organizations frequently upgrade their fleets to remain professional and stay competitive and sell their old vehicles to help subsidize new later models or different cars completely. Car rental companies regularly resell their used fleet vehicles as renting customers require the comfort of new models. Selling off their old cars or groups of fleets is the best financial way to do this. This is a vital business role of car rental companies and many even require a dedicated division to handle this process.

Types of Fleet Vehicles To Consider

When shopping around for a pre-owned vehicle and you come across the term, “fleet vehicle”, chances are it’s been a rental car. But there are many types of cars and trucks that can be referred to as “fleet”, including vehicles owned by municipalities and other government agencies, cars owned by companies for their employees, and dealership owned cars for demonstration or service loan usage.

Here we review the purpose of use for each one to see how they weigh up against each other in terms of wear and tear, service history, warranties, and which ones are easier to purchase.

Used Rental Cars

The most common fleet vehicles to purchase are used rental cars but potentially pose as the most problematic, and this comes down to wear and tear. Rental companies are keeping their cars in use for longer periods of time and you will be lucky if you find one with 15,000 miles or less. On average, car rental vehicles are used up to three times this number before entering the used car market.

The upside is that car rental vehicles are well-maintained cars with clean interiors and little to no dents or scratches on the outside. This is typically the case with car rental vehicles as customers take extra care of vehicles they don’t own and if they are told, “don’t smoke in the car” they really don’t smoke in the car.

Used Government Cars

Municipality-owned automobiles are generally well looked after, but finding one in good condition can be challenging. They are normally sold at auctions, and agencies only get rid of them when they decide the cars are no longer needed for service or are no longer safe enough for regular use.

Used Company Cars

Fleet vehicles used by corporations are great purchase options in the used market as they are cars that have been driven more gently and replaced more frequently. Sales reps and executives take pride in their company car and try their best to avoid any damage to company property, which explains why these fleet cars are taken care of, often being taken to reputable and reliable fleet service centers. However, always ask for the service history book, as some service and delivery vehicles are used almost right up to their service date before they are put up for sale.

Used Auto Manufacturer and Dealer Cars

Car dealerships commonly use fleets of cars as demo models for their sales reps and managers to use. This is an easy way to market the car and it is usually retained as a company perk. The car manufacturing industry also has fleets of vehicles that they use for media loans, executive benefits, and training, but they often have limitations on when the cars have to be sold. The great aspect is that many of these are still under warranty. Dealers usually refer to their fleet vehicles as “Program Cars.”

What is Different When Buying a Used Fleet Vehicle

If you are buying a fleet vehicle from any of the above types of industries, the process is similar to buying any other used car but there are a few exceptions. Here are some angles to consider when making your decision.

Ask For a Vehicle History Report

It is best to find out as much as you can about the car and the first step you can take is getting a full vehicle history report.

However, keep in mind that when it comes to vehicle history reports for fleet vehicles you may come across a few curveballs. Most rental car companies and government entities have their own in-house service and repair shops and although maintenance may have been carried out in good time, it is impossible for vehicle history reporting agencies to access this information. It is better to ask the seller for all the necessary service information they have on the car you are interested in buying.

You must apply the same initiative if the company does accident repairs in-house, as damage repairs are usually not recorded on the vehicle history report. Study the history reports for any reported accidents and then ask the seller about any repairs that were done. Not too clued up in this department?

Use an Independent Mechanic to Inspect The Car

When it comes to used fleet vehicles it is particularly important to use an independent mechanic that has no relation to the seller. An independent mechanic will not leave any problems unnoticed and you can rest assured they will check all wear items were repaired properly and on time, ensuring the car meets industry standards.

Ask your mechanic to pay special attention to the quality of parts used as they will be able to pick up whether the company that owned the vehicle didn’t try to save costs by using low-grade replacement parts. This wouldn’t automatically change your mind about the car but it can benefit you when negotiating on price.

Take note that if the seller seems to be having a problem with your request to have the vehicle tested by an independent mechanic, or if they feel uncomfortable about it, it is usually a sign that there is a problem and it is best to back out of the deal. The car might be alright in many areas but the risk of a hidden problem can lead to expensive repairs down the line.

Take It For a Test Drive

Test driving the car can give you a good idea of any bad odors or dampness problems. A lot of rental cars have been used by smokers and this type of smell is difficult to get rid of, so in this case, you shouldn’t be paying a high price.

Another area of concern to look out for is dampness, as some fleet vehicles are kept in storage for a while before going up for sale. Warm, humid, or damp storage environments can cause serious mold and mildew issues in the cabin and HVAC systems, which is definitely a problem you don’t want to be left in your hands.

Get the Best Deal with Competing Financing Offers

To find a good finance deal, you should get a financing offer from a lender. This gives the dealer the opportunity to beat the offer. If you don’t give them something to compete with, they have no incentive to find you the best offer.

Ensure that you tell the lender that you are interested in looking at used fleet vehicles. Some lenders don’t loan money on used fleet vehicles, others require higher down payments, higher interest rates, or shorter loan terms.

Always Ask What Protection Plans Are On Offer

Most fleet vehicle sellers have solid vehicle protection plans in place to give you peace of mind so you can drive off confidently. If a problem occurs with your vehicle within a certain time frame, there is a backup plan available for you to have it sorted out. For example, Enterprise Car Sales, the remarketer of vehicles for the rental car company, provides a 12-month/12,000-mile powertrain warranty included in the car purchase, plus a year of roadside assistance and a seven-day repurchase agreement.

Hertz Car Sales has a certified used car program on their used rentals that offers a similar warranty to the Enterprise program with additional travel breakdown reimbursement, towing coverage, and a provision for a replacement rental car if your car breaks down. Always read the fine print on any seller-supplied warranty to make sure that you can get the car serviced at a shop of your choice.

Most car dealer and manufacturer fleet vehicles that you come across are still considered young and therefore qualify as certified pre-owned cars. This will make their price a bit higher than you would expect compared to a non-certified model, but the positive is that they are backed by a manufacturer-supplied extended warranty.

The Advantages and Disadvantages

There are many types of fleet vehicles as mentioned earlier and because they are used for different purposes, their conditions can be completely different from another. Ultimately, there are a few advantages and disadvantages to consider when deciding on whether to purchase one. Let’s cover some here:

Advantages:

• Latest models

With rental companies, older models are frequently replaced with newer ones. When you purchase their “older” vehicles they are usually only a few years old, giving you the opportunity to get all the latest features and technologies at a good price.

• Good maintenance

Rental vehicles are always well maintained and stick to stringent maintenance schedules to prolong longevity.

• A good price

When it comes to fleet vehicles, they are usually always cheaper than similar vehicle models that are privately owned.

Disadvantages:

• High mileage count

Fleet vehicles are used daily by sometimes multiple drivers which accounts for higher mileage, and a lot of rental companies only sell their vehicles after having them for a year or so.

• More wear and tear

With fleet or commercial vehicles, different drivers are handling the car frequently, which leads to more wear and tear as opposed to one driver with the same driving style and travel routes.

• Poor resale value

The resale value on a fleet vehicle is going to be much lower than a privately owned vehicle of the same used model, which poses a problem when wanting to sell or trade-in the car. And lastly, most financial lenders aren't going to finance a fleet vehicle and if you have bad credit, getting finance for it is out of the question.

Is a Used Fleet Vehicle a Good Idea to Buy?

There are always going to be various ups and downs to take into account when making a decision to buy a used car and the same goes for a fleet vehicle. But with fleet cars specifically, the answer depends on several factors, such as what kind of fleet was it used for, how much of a discount can you get, was it properly maintained, how is the mileage, and what warranty is included.

Try your best in determining its condition and accumulating knowledge of the price you should pay for it. If you take the following precautions below like you would with any used vehicle, then “yes”, buying a fleet vehicle is a good choice.

• Buy a vehicle that still has the original warranties and a manufacturer's warranty is far more comprehensive than any warranty provided by the seller. The more warranty left, the better.

• Purchase a vehicle history report if the history report is not provided. It normally shows more information than what the seller provides, like accident damage.

• Ask a qualified independent mechanic to assess the mechanical condition of the fleet car and any signs of rust, physical or water damage. Generally, the mechanic has the professional eye and knowledge to pick up problems that are not normally noticed.

Do you have more understanding of what is a fleet vehicle and have your eyes set on one? At Manchester Fleet Services we provide diagnostics and repair, PMI and tune-ups, state/DOT inspections, and whatever service a fleet vehicle needs to keep them on the road, so we know fleet vehicles. Contact Manchester Fleet Services today if you have fleet vehicles that need servicing or for advice on keeping your vehicle running.