Rental cars may be about to flood the used car market as companies like Hertz go bankrupt.
Now that the rental-car giant Hertz has filed for Chapter 11 bankruptcy, the company's next steps aren't clear. But if a whole slew of used rental cars suddenly hits the market, don't immediately shy away from them. Picking up a used rental car isn't always as bad as you'd think.
Car sales have been in terrible shape this year, mostly because of the COVID-19 pandemic. It's a buyer's market for sure, so if you're thinking about picking up something new for yourself, now might be the time to do it.
Hertz has no intention of buying any more cars for its fleets this year. In fact, Hertz and other suffering rental-car companies are likely to sell off a big chunk of their fleets instead. Industry experts expect the companies to unload 1.5 million cars from their US fleets in the coming weeks and months, according to CNN Business.
What does that mean for you, a prospective buyer? It means that you're going to have a lot more used cars to choose from, and probably at more favorable prices.