Some advice please guys as I haven't bought a car since I got my 1997 Daihatsu Charade 4 door hatchback. It's been a reliable car but now needs a new water pump and fanbelts. I've have been thinking about upgrading for a while and found a 2018 Toyota Corolla with a pretty high mileage for its age (56km) at a dealership. Firstly, how do you know if a car is an ex-rental or has been in an accident? The dealer said they aren't permitted to say why the previous owner gave up a car with time still on the warranty. The price is in line with same models at other dealerships. I negotiated a discount for cash no problem and the dealer says he's making less than $1,000 profit, which could be bull or he really wants rid of this car. Should I get the car mechanically checked out? Although he hasn't seen the Charade, the dealer says they will take it as trade in and sell it to a scrapper ie don't expect much. Charades seem pretty popular on Trade Me. Is it worth trying to sell privately without replacing the water pump or at all? Thanks.
franc123,
Jan 12, 12:00am
Well you could sell it as is but it's obviously going to get a better price if it's fixed, if its warrantable and otherwise in reasonable condition it still should fetch $12-1500 which will be much more than a dealer or wrecker will give, possibly a little more if manual. Get an estimate for the repair and decide from there if it's better to just sell it a bit cheaper.
Easiest way to tell if a car is an ex rental is to look up its previously logged inspections on Carjam. these will be CoF and not WoF. Accident damage, unless it's been deregistered, fixed and reregistered/complied again which the dealer must disclose, difficult to know unless a PPI picks up any obvious signs of repair. Sales people may not know themselves if a car has had minor panel repairs done.
Being so new and buying from a dealer you are on pretty safe ground and have got good legal protections re factory warranty, CGA etc but a PPI is wise for the above reason especially. Sure if a car develops odd, difficult to rectify problems caused by inadequately repaired accident damage which obviously wont be covered under factory warranty then you may be able to get refunded or an exchange vehicle but its obviously hassles you won't want, especially if buying a long way from home.
Good luck.
toomanyhats,
Jan 12, 12:09am
Thanks franc123 for your good advice and direction to Carjam. I will slow down a bit and consider my options.
toomanyhats,
Jan 12, 12:21am
Yes, it's an ex-rental according to Carjam. Think I'll pass. Pretty annoyed with the dealer as I did ask why the previous owner gave it up when still under warranty.
franc123,
Jan 12, 12:26am
Ok for its age and kms highly likely it was a rental. I would too if there are readily available identical ones in the market for the same price, there are all sorts of reasons why near new cars get traded in. If you want to keep it for a long time it probably doesn't matter it was a rental but it could affect its appeal to buyers if you want to sell it on in a couple of years. This phenomenon is known as 'CoF staining" on a cars record lol.
evotime,
Jan 12, 2:35am
3 very reputable dealers (all big brand franchises) I worked as a mechanic for all regularly bought ex rentals at similar kms. They were all extremely tidy didn’t require any paintwork or mechanical repairs. Simply swapped from cof to wof I would happily buy a newish exrental. I know places like go rentals insurance excess would be enough to put most people off treating them poorly.
evotime,
Jan 12, 2:37am
As for the charade I’d one dollar reserve it, people see something needs repairs and from what I’ve seen pay stupid money to buy them.
msigg,
Jan 12, 7:17am
Nothing wrong with an EX rental, they have been serviced and hot kms. Ive had 2 x over the past 20years and all are sweet.They are the ones to buy.
stevo2,
Jan 12, 7:28am
It is against the law for a dealer not to disclose if its been a rental. Are you sure he/she wouldn't tell you?
vtecintegra,
Jan 12, 7:35am
The reality is most Corollas are sold as rentals these days and with Covid causing companies to dump their fleets sooner than they otherwise would there are a tonne available.
Personally I agree with evotime and wouldn't have an issue with a rental that new (I wouldn't buy one that was too much older though, by that point they've likely been cycled into one of the budget rental companies and are likely to be getting a bit rough around the edges)
intrade,
Jan 12, 7:48am
ok if you had a 1997 daihatsu That is like ultra reliable to what is going to hit you with modern stuff. basically how long did your mobile phone last? because modern cars are like 100 of these phones . and yes the repairs will cost you the price of a new mobile phone . for Toyota 2005 is where they started to join all the rest of the unreliable expensive electronic failing trash. Cars have never cost more to buy then now is another problem its to complex to explain but short no cars are made so old stock goes up just like house prices. The car prices will come down unless no manufacturer survives and you only get 2 car makers then the car prices will stay high like supermarket food. If you can fix that daihatsu cheap then i recon keep it for another 1 to 2 years because no one on this planet will have any money and manufacturer will have to start selling cars at cost to try and make things move again.
tgray,
Jan 12, 7:55am
Sure about that? If someone asks, they must disclose, but I am not aware of a law that says dealers must tell prospective buyers if a car has been an ex rental.
As above if price is right with low miles no great problem being rental but if you asked and dealer didn’t tell then you can’t trust them so find another. You’ll be wanting good honest dealer that backs their cars not bullshit brokers.
kazbanz,
Jan 12, 12:50pm
Please point to the law that states this? or the broad legislation. or--well anything legal. MUST disclose-imported damaged. Must disclose reregistered. but ex rental ?
kazbanz,
Jan 12, 12:53pm
Why is it important to you? Ex rental could well be ex lease--long term single driver.or ex rental fleet. I'd argue ex rental has had a range of driving conditions and styles and regular servicing so likely better than company vehicle or private use
stevo2,
Jan 12, 12:54pm
Sorry, I meant disclosed "If Asked" and the OP did ask. Dealer cant say NO if it has been.
tgray,
Jan 12, 12:59pm
No requirement for a dealer to tell a buyer a car has been an ex Taxi either, or driving school car.
toomanyhats,
Jan 12, 1:56pm
I specifically asked the dealer if he knew why the previous owner let go of the car when it's still under warranty. He started talking about how the Privacy Act meant he couldn't identify the previous owner so I clarified that I didn't want to know who but why. He said he didn't know. This is a small dealership and the location would suggest they get a lot of downsizing and estate vehicles. I expect I would have been told at the time of signing that it was an ex-rental as I've had these kind of "by the way" surprises previously (years ago). After learning a bit more about the servicing Toyota gives ex-rentals, I will reconsider buying one. In the meantime, the Charade will get repaired. Thanks all.
toomanyhats,
Jan 12, 2:01pm
Yeah, I know what you mean. As an oldie, I can recall the microwave and drier that lasted 10 years while the new ones gave out soon after the warranty period. Our 20 year old fridge is still going strong.
s_nz,
Jan 12, 4:35pm
As other's have said, it is highly likely an a 2 - 5 year old corolla will be en ex rental, especially if it is a hatch or sedan, base spec, and non hybrid.
In 2019 60% of all corolla's sold new went to rental car companies. Given the absence of international tourists is is not really a suprise that rental companies are selling down their fleets, especially with relatively solid prices of less than 5 year old cars due to currency movement, supply issue's (incl used imports), and lots of buyers keen for a car upgrade in place of a trip to the gold coast etc.
Personally I wouldn't be to concerned buying an ex rental car. I actually did buy a rental corolla 10 years ago that I sold late last year (did about 80,000km in it). Not that much a renter can do to beat up a FWD auto rental car that isn't going to leave viable damage. Burnouts just damage the tire's etc. - Mine did have some damage to the wheel well liners from snow chains but that was about it. Also had 4 mismatched brand economy tires. Changing to a nice performance touring tire massively changed the driving dynamics.
Most renters are business travelers or tourist's that just want to get where they are going, and will drive the car normally to avoid extra risk. Rentals generally don't have tow-bars, so you can be sure they haven't towed excessively heavy stuff, and generally they won't have been overloaded: a renter with lots of stuff / people would pick a larger vehicle to rent.
Getting a high mileage ex rental meant I was able to get a younger and cheaper vehicle than what I had planned. Brought it for $7000 and sold it for $3,500. Pretty good going for 9 years and 80,000km of service. Did put a towbar on and it had brand name lifelong tires with 8mm left when I sold it which might have added value.
gunhand,
Jan 12, 5:33pm
Nothing wrong with x rentals, Ive owned one for 4 years or so and apart from two headlight bulbs a year apart and regular servicing its been faultless. And a hell of a lot more Kms than 56k. Nice tidy car it is. Been cleaned that often they wore the paint id sticker info off on the door shut.
tgray,
Jan 12, 5:40pm
Many rentals have had panel repairs once they end up being sold by the rental companies. In fact I would say most have had dents fixed and paint work done here and there. I would still buy one, but would check the body thoroughly first.
franc123,
Jan 12, 6:24pm
Correct, and done cheaply too. That's why I gave the advice I did right at the start.
gunhand,
Jan 12, 6:31pm
And what about the thousands of cars sitting in car yards that have been touched up or repaired cheaply, not just a x rental thing. Ive done car yard work and unless you do it fast and cheap (what they want) its not worth doing if you have pride in your work. And try and do a come back if ya paint falls off two weeks after buying your nice new second hand non x rental.
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