Key terms of the new warranty
Buying a car that was previously used for rental always comes with risks: such a vehicle was likely driven by dozens, if not hundreds, of drivers. However, Hertz has decided to make purchasing its former rental cars considerably more attractive by announcing a new limited powertrain warranty — 3 years or 100,000 miles for eligible vehicles.
This warranty is provided free of charge and applies to most cars sold by Hertz that are no older than 5 model years and have less than 75,000 miles (120,700 km) at the time of sale. Importantly, this is not a “bumper-to-bumper” warranty: coverage is limited to the powertrain, specifically certain engine, transmission / transaxle, and drive axle components.
What exactly the warranty covers
The Hertz Car Sales website does not specify which exact powertrain components are included in the warranty. It only notes that the full description of coverage and exclusions is available in the customer’s limited warranty agreement. It is also worth remembering that used cars sold by Hertz may be covered by the manufacturer’s warranty, depending on age and mileage.
The company explains that it decided to launch a free warranty partly because the average age of cars on U.S. roads reached a record 12.8 years. In addition, the average annual cost of owning and operating a vehicle has already exceeded $11,500.
Comment from Hertz management
“Consumers are keeping cars longer and placing greater value on reliability, protection, and long-term value. The 100K Mile Protection program reflects our commitment to helping customers buy and own their next vehicle with greater confidence. Combined with our large selection of nearly new, single-owner cars that are typically no more than a year old, this gives customers added peace of mind from the day of purchase and throughout the entire ownership period,” said Jeff Adams, Executive Vice President of Hertz Car Sales.
Warranty service terms
Owners will have to pay a $100 deductible for each visit for warranty repairs at Hertz. In the event of certain breakdowns, customers may also be eligible for reimbursement for rental car expenses, towing, and roadside assistance. Although the warranty is advertised as 100,000 miles of coverage, this figure is not added to the mileage already driven, but includes it. Once the vehicle’s odometer exceeds 100,000 miles or 36 months pass, the warranty will expire.
What this means for the used car market
The emergence of such a warranty could significantly affect perceptions of former rental cars, because the main fear of buyers has always been the unknown condition of the vehicle after intensive use. Even limited powertrain coverage helps reduce the financial risks associated with the most expensive breakdowns. At the same time, it is worth carefully checking the actual remaining warranty, since for a car with, say, 70,000 miles on the odometer, it will last only until 100,000 miles, not three full years. This approach may also prompt other major players in this market to reconsider their own loyalty and warranty protection programs in order to remain competitive.