“Own” Used Car Loans by Recommending Rental Cars to Members

What if you could find members an automobile that you knew was well maintained the first year of its life? Both credit unions and members can benefit from former rental cars sold on the used car market.

 

By Enterprise Car Sales

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What if you could find for members an automobile that you knew had been well maintained the first year of its life – regular oil changes, brakes and other parts inspected often? And what if that year-old car also came with a 12-month/12,000-mile warranty and a seven-day repurchase policy? Any member would be grateful to get such a well-maintained automobile.

Actually, this scenario requires no imagination. Credit union managers and car loan officers have access to literally tens of thousands of these types of late-model, high-quality used vehicles via car rental companies.

The truth is rental cars are some of the best buys in the used car market. These vehicles, while driven by multiple motorists, receive much more TLC than the average consumer-owned vehicle.
But while many car buyers understand the advantages of a used vehicle over a new car (especially the depreciation tied to new vehicles), they may not consider the benefits of purchasing a rental vehicle.

In 2003, 1.7 million rental vehicles were sold in the United States. Many were passed directly to auctions and onto car dealer floors. However, tens of thousands were selected by rental companies for their own resale businesses. These vehicles represent the “cream of the rental crop.”

For instance, most of the vehicles on Enterprise Car Sales lots are chosen from Enterprise
Rent-A-Car’s fleet of more than 700,000 rental and fleet services vehicles. This might be the best opportunity for credit union members to buy a quality rental vehicle – and all the advantages that come with the purchase.

Enterprise is unique in that each vehicle passes a 109-point inspection by an ASE certified master technician and comes with a 12-month/12,000-mile limited warranty and a seven day/1,000 mile repurchase policy.

The credit union also benefits: Enterprise guarantees that credit unions receive 100 percent of used car loans 100 percent of the time. Enterprise also optimizes member loyalty by creating tailored used car buying/loan programs, such as free car buying seminars, co-branded Web sites, and comprehensive marketing plans.

Consider the qualities rental cars offer for purchase:

  • Late models: The typical rental vehicle for sale is one to two years old. This creates a selection of vehicles that are new, stylish, and sought after.
  • One owner: If offered a vehicle owned by an auto expert committed to vehicle maintenance and care, the average car buyer would probably sign sight unseen. As stated earlier, rental cars offer this opportunity. Cars are their business; their livelihood depends on keeping their vehicles expertly maintained.
  • Low mileage: The typical rental vehicle has less than 30,000 miles when it is put up for sale.
  • Reasonable prices: All vehicles sold by Enterprise Car Sales are priced below NADA or Kelly Blue Book retail values, and with the company’s no-haggle policy, buyers get this price without the pressure of bargaining.

Rental cars provide a tremendous value option for credit unions and members alike. It’s something to keep in mind the next time a member asks, “Where can I get a good deal on a car?”

This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.

If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at ads@creditunions.com or 1-800-446-7453.

 

Sept. 27, 2004


Comments

 
 
 
  • One caveat to Enterprise sales: Their own disclaimer states that the cars come Enterprise rental fleets, other auto rental fleets or from an auto auction. Therefore the cars may not have been maintained to the level stated in this article.
    Anonymous
     
     
     
  • In response to a posted comment regarding the purchase of an Enterprise Car Sales vehicle, we wanted to clarify our commitment to our customers, including Credit Union members.

    All of the vehicles we sell to the public undergo a rigorous 109-point inspection by an independent, ASE-certified mechanic. In addition, we have a 7-Day Repurchase Agreement which allows a customer to return a vehicle if not completely satisfied. Our vast inventory of more than 700,000 vehicles allows us to select only the best units from our company-owned fleets. A small portion of our vehicles come from outside sources to give our customers variety, but still carry the same certification and our 7-Day Repurchase Agreement.

    In addition, we include a 12-month/12,000-mile limited powertrain warranty with each and every vehicle we sell. Most of our vehicles also have the balance of the factory warranty, and we offer extended service contracts for further peace of mind. All of this, combined with our company's pursuit of completely satisfied customers, make Enterprise Car Sales the best place to buy a used car.

    I hope this clarifies our commitment to selling only the highest quality vehicles to Credit Union members.
    - Dennis Brooks, Enterprise Car Sales Corporate Inventory Manager
    Anonymous
     
     
     
  • In response to a posted comment regarding the purchase of an Enterprise Car Sales vehicle, we wanted to clarify our commitment to our customers, including Credit Union members. All of the vehicles we sell to the public undergo a rigorous 109-point inspection by an independent, ASE-certified mechanic. In addition, we have a 7-Day Repurchase Agreement which allows a customer to return a vehicle if not completely satisfied. Our vast inventory of more than 700,000 vehicles allows us to select only the best units from our company-owned fleets. A small portion of our vehicles come from outside sources to give our customers variety, but still carry the same certification and our 7-Day Repurchase Agreement. In addition, we include a 12-month/12,000-mile limited powertrain warranty with each and every vehicle we sell. Most of our vehicles also have the balance of the factory warranty, and we offer extended service contracts for further peace of mind. All of this, combined with our company's pursuit of completely satisfied customers, make Enterprise Car Sales the best place to buy a used car. I hope this clarifies our commitment to selling only the highest quality vehicles to Credit Union members. - Dennis Brooks, Enterprise Car Sales Corporate Inventory Manager
    Anonymous
     
     
     
  • Enterprise Car Sales used to be great to work with, now they have a pure car dealers' mentality and the credit union gets the deal or gets to participate in the sales only on Enterprise's terms. Normally terms not conducive to credit unions! This is an advertisement for a vendor - shame on you!
    Anonymous
     
     
     
  • Good article. Thank you for sharing ideas for us to turn into action. :-)
    Anonymous
     
     
     
  • Thank you for this valuable info.
    Anonymous
     
     
     
 
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