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Discussion Starter #1 (Edited)
So Hertz has filed for bankruptcy protection and no doubt other car rental companies are also feeling a lot of pain right now. It got me thinking about all those cars just sitting and how likely it is that some will start being sold off.

Sure enough a quick Google turned up this article:

Then this: Hertz Car Sales | Hertz Used Cars | Hertz

Over the next few months there may well be some real deals to be had on a used rental car from all the major rental companies.

I found the cars available right now from Hertz Toronto, here:
 

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Heck, why be pusillanimous? Time to go big or go home! Look at all those parked aircraft! I've got my eye on a gently used 787. Maybe from Cathay Pacific. I've always liked their paint jobs. I think I'll refrain from going gauche and having my name writ large on the fuselage, Trump style.
 

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One caveat is (I think) if you have a trade in, you may need to sell it yourself, which means you could be paying extra taxes.

But when the time comes that they need to open space or are in a cash crunch, the deals could be golden.
 

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I guess if the discount were substantial enough I would consider a former daily rental. It seems the rental companies don't sell much of their cars themselves in Canada, compared to the US. You do see former daily rentals at various car dealerships though. Perhaps they just buy them at auction.
 

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Discussion Starter #5
I guess if the discount were substantial enough I would consider a former daily rental. It seems the rental companies don't sell much of their cars themselves in Canada, compared to the US. You do see former daily rentals at various car dealerships though. Perhaps they just buy them at auction.
Well the last link I gave shows the vehicles Hertz is selling direct in Toronto andrewf. I don't see much point to buying one from a third party who buys from the rental agency at auction or whatever and then sells to you. That will no doubt just eat the difference you could get from buying directly from the rental agency.
 

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Discussion Starter #6
Heck, why be pusillanimous? Time to go big or go home! Look at all those parked aircraft! I've got my eye on a gently used 787. Maybe from Cathay Pacific. I've always liked their paint jobs. I think I'll refrain from going gauche and having my name writ large on the fuselage, Trump style.
Yeah, but don't forget the cost of putting in your own landing strip and a large enough hanger for the 787. I think I'll stick with something that fits in my garage.
 

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Discussion Starter #7
One caveat is (I think) if you have a trade in, you may need to sell it yourself, which means you could be paying extra taxes.

But when the time comes that they need to open space or are in a cash crunch, the deals could be golden.
Huh, extra taxes? If you sell a used car yourself or trade it in, you don't pay any taxes on the sale, the buyer does.

Many people choose to sell their old vehicle themselves rather than trade-in because they can sell for a higher price than the dealer offers them on a trade-in. Trade-in values have long been a point where dealers can manipulate the numbers to make you THINK they are giving you a good price for your existing vehicle when in fact they simply give you less discount on the new vehicle to make up for it.

When buying, I've always used the approach of, 'first tell me the price you want me to pay for the new vehicle and only after that will I discuss what you will give me for my old vehicle IF I decide to trade it in.' I would never let the dealer combine both in the one negotiation.
 

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Well the last link I gave shows the vehicles Hertz is selling direct in Toronto andrewf. I don't see much point to buying one from a third party who buys from the rental agency at auction or whatever and then sells to you. That will no doubt just eat the difference you could get from buying directly from the rental agency.
Rental companies are also making an additional margin on the cars they sell directly to consumer. Auction is a lot less overhead--they need to be compensated for the added bother of dealing with the public.
 

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Huh, extra taxes? If you sell a used car yourself or trade it in, you don't pay any taxes on the sale, the buyer does.

Many people choose to sell their old vehicle themselves rather than trade-in because they can sell for a higher price than the dealer offers them on a trade-in. Trade-in values have long been a point where dealers can manipulate the numbers to make you THINK they are giving you a good price for your existing vehicle when in fact they simply give you less discount on the new vehicle to make up for it.

When buying, I've always used the approach of, 'first tell me the price you want me to pay for the new vehicle and only after that will I discuss what you will give me for my old vehicle IF I decide to trade it in.' I would never let the dealer combine both in the one negotiation.
In Ontario, you pay tax on the difference of the purchase price of the car you are buying less the value of the trade-in. Usually the dealer with try to capture this savings by lowballing you on the trade-in. I think the trade-in is where they make a large part of their money and they woo people by saying you can avoid paying some tax. For some reason, people will give up $2 in income to avoid paying $1 in tax. People have a bizarre disproportionate aversion to paying tax. Probably the same reason why people use expensive financial instruments to avoid probate (which is tiny).
 

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Yeah, but don't forget the cost of putting in your own landing strip and a large enough hanger for the 787. I think I'll stick with something that fits in my garage.
Well, okay, I realize there are a few details to work out. Such as landing and hangar space. Of course, I could just leave it parked outside and pay someone to wash and wax it once in awhile. I'll have to learn perhaps to do my own oil changes. And how to fill it up with cheap gas at Costco.
 

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Huh, extra taxes? If you sell a used car yourself or trade it in, you don't pay any taxes on the sale, the buyer does.
There is a tax saving in doing a trade-in rather than selling independently. When you do a trade-in, you only pay tax (GST, PST) on the difference. That saving, i.e. (new-old)*HST, will be lost if you sell it to a third party. If your trade-in is worth 20k, that is 2.4k in savings.
 

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Discussion Starter #12
Huh, well thanks andrewf and Topo, I didn't know you only paid tax on the difference. I can see where if you were to trade in a $20k vehicle as you suggest Topo there would be a significant tax savings.

I guess my question would be, why are you trading in a car that is still worth $20k? Would it not make more sense economically to continue to drive and maintain that vehicle? The only time I sell a vehicle generally speaking is when it is no longer economically viable to maintain it. ie. you blow the engine on a vehicle with a value of $5k or less.

When I returned to Canada, I bought my current vehicle brand new for reasons I won't elaborate on. I would not normally buy new as I consider buying something a few years old as a far better economic decision. A car to me is simply transportation and I want to have that transportation at the lowest possible annual cost I can. I don't want to be driving a 'rust bucket', I want it to look reasonably good and be mechanically sound but beyond that, it is a cost per year proposition.

My current 2006 vehicle has run me according to my local garage's online service records, less than $1200 per year over the last 10 years. It still looks nearly brand new inside and out. No rust, no dents, not even any real scratches in the paint. I have over 240k km. on it.

Here is a 2007 (couldn't find a 2006) that looks to be in similar condition and with lower mileage. They want $3450 for it. So how much tax would I save if I traded it in? Seems to me the discounted price on a used rental would more than offset the tax savings I would lose if I had to sell privately.

It's easy to take a hypothetical figure of a $20k vehicle and the resulting tax savings and hang your hat on it but that only works if you have a vehicle worth $20k in REALITY.

The last three cars I owned before my current one were Classic Cars. I sold them for more than I paid for them. The last non-classic car I owned, I gave to a son. My current vehicle I will not be looking to sell for much and may well give it away as well. Trade-in tax savings vs. private sale will not enter into the equation at all.

So, I'm back to when I finally decide to buy another vehicle, will a used rental be likely to be available at a lower price than a dealer used vehicle? Apples to apples.
 
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