Do Car Dealers Provide Rental Cars? (Checked & Solved)

The car rental industry has been around for quite a while and it is run by what we know today as car rental companies. Like the name suggests, the car rental companies put up cars for rent at an agreed price, period, and conditions.

While it is an industry on its own, we can also consider the car rental industry a sub-unit of the auto industry. Hence, there have been questions about whether car dealers can also put up some cars in their dealerships for rent.

In this article, we’ll be answering that question while providing detailed answers to other related questions.

Here’s the Short Answer to Whether Car Dealers Provide Rental Cars:

Car dealers rarely deal in rental cars, at least, not in the traditional sense. However, many car dealers offer loaner cars- cars given out to customers as temporary replacement for cars under service/repairs. If you want to rent a car, you have to go to a car rental company.

Do Car Dealers Typically Rent Cars?

No one looking to rent a car goes to a dealership first, especially since there are rental companies around. In the same vein, dealerships typically do not rent their cars out as car rental companies do.

The major reason why they don’t do this is because they do not want to compromise the newness of their cars. You can’t really refer to a car as new anymore if there are thousands of miles on the odometer. And of course, that’d be a major red flag for prospective customers.

Another reason dealerships rarely dabble in the business of renting cars is the cost. It takes a lot of money to float a dealership, and adding a rental business to the mix can be a little too much.

However, there are situations where car dealers would offer rental cars, otherwise known as loaner cars. Dealerships offer loaner cars to customers when repairs and maintenance for the customer’s car last beyond four hours.

Usually, the dealerships do this not as an obligation but as some form of courtesy to loyal customers. However, they may be under obligation to provide these loaner cars if there is a contractual agreement to that effect.

Some dealerships have rental departments where they allow prospective customers to take cars out for an extended test drive.

Apart from loaner cars, some dealerships also offer actual paid rental cars to tourists and travelers, usually from their used car lots. Sometimes, this category of rentals is sanctioned by the auto companies themselves under specific rental programs.

Do Toyota Dealers Rent Cars?

Toyota offers rental cars to the public through various dealerships across the country. The program is called Rent a Toyota and offers service rentals/loaners and insurance replacement cars. Also offered by the program are rentals for extended test drives and travel plans.

However, there are conditions and policies governing the program, and they range from age to other restrictions. For instance, the program requires all renters to be at least 21 years old. Also, the rental cars can be driven into Canada, and a valid driving license suffices.

Another interesting part is that Toyota allows renters to purchase the cars after the mandated four-month-in-service duration.

Related: Can Rental Cars Be Delivered To Your Door? (Explained)

Do Ford Dealers Rent Cars?

A number of Ford dealerships also offer Ford cars for rent all over the country. One big advantage of renting a Ford model off these lots is the assurance that Ford-trained technicians have serviced the cars.

The cars are rented out through several dealerships under a program known as the Ford Rent A Car. The dealerships often require proof of full coverage insurance.

Do Chevy Dealers Rent Cars?

While we didn’t find an official rental program from Chevrolet itself, a number of dealerships actually offer Chevy models for rent. They often offer huge loyalty discounts for loyal renters who decide to buy cars off their lots after some time.

Do Honda Dealers Rent Cars?

Many Honda dealerships, alongside the routine sale of Honda vehicles, have rental offices. They rent these cars out either as replacements for in-service cars or for business/leisure purposes. However, these dealerships often require full coverage insurance extending to rentals and a valid driver’s license.

They also often demand that customers have a major credit card, and they also require customers to make a security deposit covering any potential damage.

Do Jeep Dealers Rent Cars?

Jeep vehicles are often put up for rent by dealerships under rental programs also covering Chrysler, Dodge, and Ram Vehicles. However, Jeep itself does not have an official rental program.

Dealers often offer Jeep vehicles for rent as replacements for vehicles under extensive repair. Also, the dealerships take a vehicle damage deposit north of $200, and they require full coverage insurance and a valid license.

Do Nissan Dealers Rent Cars?

The Nissan auto company in the United States has a rental program known as the Nissan Rental Car program. The program covers weekend and leisure rentals, corporate and business rentals, as well as insurance replacement rentals.

Service drive rentals are also available for customers who drop off their cars for maintenance/repairs and need another car. Not to mention opportunities available for extended test drives.

Most Nissan dealerships would require a major credit card from which they temporarily deduct a $300 charge for authorization. They also require full coverage insurance and a minimum age of 21 for customers who want to rent.

Is It Cheaper to Rent Cars At Car Dealerships?

Dealerships often rent the cars in their lots at very competitive rates. These rates are often cheaper than traditional rental rates, and the dealerships usually provide lots of incentives that may sway renters to their lots.

However, renting cars at dealerships might not be so cheap for tourists and foreigners. This is because it will cost them time, money, and some exertion to find a dealership that actually has a rental program.

Also, for renters who do not have an extensive insurance coverage, additional charges could make renting at dealerships costlier.

Related: Are Rental Cars Cheaper For A Week Or By Day? (Checked & Solved)

Why Don’t Car Dealers Typically Offer Rental Cars?

The major reason car dealers don’t typically offer rental cars is because they do not want to compromise the newness of their cars. You can’t really refer to a car as new anymore if there are thousands of miles on the odometer. And, of course, that’d be a major red flag for prospective customers.

Another reason dealerships rarely dabble in the business of renting cars is the cost. It takes a lot of money to float a dealership, and adding a rental business to the mix can be a little too much.

Some car dealers also do not offer rental cars for fear of the possibility of customers causing serious damage to their cars. That explains why those that have a rental program often require customers to make a security deposit through their credit cards.

Related: Are Car Rental Prices Going Up Or Down? (Checked & Explained)

Do Car Dealers Typically Offer Rental Cars During Service?

Most experts recommend taking a faulty car to a dealership for repairs and maintenance. This is because auto technicians at dealerships are expertly trained to take care of these particular brands and models.

However, sometimes car repairs take a while. In such cases, some car dealers would offer rental cars as some sort of complimentary incentive and in good faith, especially to loyal customers.

This category of rental cars is known as loaner cars. They are usually covered by the customer’s insurance programs. Dealerships may also rent them out to loyal customers for free as a form of courtesy.

While many dealerships offer rental cars during service, it is not an expected legal obligation. Dealerships are only under obligation when there is insurance coverage or express contractual agreements between the dealers and the customer.

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