Here is some info I put together from a quick overview:
Pros
- Fixed pricing
- Well maintained
- Often under warranty; extended warranties usually available
- Prices can be lower because agencies buy vehicles in volume
Cons
- Limited luxury and advanced safety options
- Car already has wear and tear
- Powertrain warranties often do not carry over from owner to owner
What to Do
- Know the fair market value of a car you’re looking at. Compare used rental price with used private and used car dealer price
- Ask for a vehicle history report or run VIN through SaferCar.gov to learn odometer, repair and recall history, flood damage, etc. (~$40 for more detail from private company)
- Test drive the car and be aware of any issues or strange noises. Inspect for any wear and tear and body damage
- Get a 3rd-party pre-purchase inspection (about $100; on-site or in garage). Don’t buy the car if the dealer doesn’t want this. DO THIS BEFORE FINAL NEGOTIATIONS
- Negotiate cost of any repairs down from the original asking price