Rental car companies are renting corporate rental cars with more miles on them as a way to cut costs. For business travelers, that means the business rental car they drive is more likely to look used and ride a bit rougher than before.
Vanguard Car Rental, which operates National Car Rental and Alamo Rent A Car, estimates their average rental car carries an extra 2,000 miles on it these days compared with a year ago, according to an article in the Wall Street Journal.
What’s driving these changes? In part, automakers faced with their own financial problems, have stopped selling low-profit “program” cars that make up many rental car fleets. These cars were the result of excess production and guaranteed rental car companies a certain resale price. Now rental car companies are assuming more risk when they purchase cars. They aren’t guaranteed a certain re-sale price and can even take a loss. Most rental cars are sold at about 20,000 miles.
The bottom line for business travelers: business rental cars may not look as new or clean. But rental car companies say regular maintenance ensures they’re as safe as ever.