Buying a rental car is a great way to save a ton of money. As long as you’ve got a good eye and strong negotiating skills, you can buy a car for thousands below what it would cost you retail. Financing your car is a great idea if you can’t afford to pay in cash. Understanding how financing works can help you save thousands of dollars in the long run.
There are several different ways you can get financing: through the dealership, your local bank, credit union, or any one of the hundred independent lenders out there. Whichever route you choose, undeniably one of the most important factors is the rate. Your rate will depend on many things - market conditions, length of loan, age of car, just to name a few. Your best bet would be to ask for a quote from each of the institutions , and pick the best of the bunch.
The second most important thing is your credit report. When you apply for a loan, they’ll almost always pull your credit report and credit score. An excellent credit score will tell lenders that you are unlikely to default on your loan, and they will offer you a lower interest rate. On the other hand, a poor credit score will make lenders more wary, and to compensate for their added risk they will offer you interest rates of 20% or more. The difference on a used car rental can be thousands over the life of the loan.
Buying a car rental is already saving you tons of money, by improving your credit you can finance your car for only a few hundreds more than cash. But if you walk in unprepared, you might have to give up your right arm.

