When people think about car rentals, the first names that come to mind are often well-known rental companies like Enterprise, Hertz, or Avis. However, another less commonly considered option is car dealerships. In recent years, more drivers have started asking: Do dealerships offer rental cars? The answer is yes—and the offerings can be just as dynamic and beneficial, depending on your needs. This article explores everything you need to know about dealership rental programs, including their benefits, limitations, availability, and how they compare to traditional car rental agencies.
Understanding Car Dealership Rental Services
Car dealerships primarily focus on selling new and used vehicles, providing maintenance, and offering financing support. However, over the past decade, many dealerships have expanded their service offerings to include short-term vehicle rentals. This evolution is largely due to an increasing demand for flexible transportation solutions and the opportunity to promote potential vehicle purchases to rental users.
Why Do Car Dealerships Offer Rental Cars?
Dealership rental services stem from a couple of key motivations:
- Supporting Service Customers: If a customer’s vehicle is in the shop for repairs or scheduled maintenance, the dealership often offers a rental vehicle to maintain a positive customer experience.
- Enabling Test Drives Over Time: Rather than a quick 10-minute test drive, some dealerships allow potential buyers to “rent” a vehicle for a few days, getting a real feel for how the car operates in real-world conditions.
- Creating Additional Revenue Streams: The car rental industry is highly profitable, and dealerships with excess inventory or demo models can use rentals to offset idle capital.
Typical Models of Dealership Rentals
Dealerships usually offer car rentals through the following three primary models:
| Model | Description | Key Use Case |
|---|---|---|
| Service Loaners | Vehicles provided to in-house service customers while their vehicles are repaired | Temporarily replace a vehicle during a repair or tune-up |
| Extended Test Drives | Offering test drives for an extended period (e.g., overnight or weekend) for potential buyers | Deepen customer engagement with a vehicle before purchase |
| Vacation/Travel Rentals | Vehicles available to non-service customers, especially in markets with heavy tourism or business travel | Travelers or residents needing a rental for a day, a week, or more |
It’s important to note that availability of these models can vary by location, dealership size, brand affiliation, and local demand. For example, luxury dealerships (e.g., Tesla, BMW, Audi) are more likely to provide high-end rentals or test drives that showcase the performance and usability of premium vehicles.
Where Can You Find Dealerships Offering Rental Cars?
A growing number of auto dealerships across the United States and globally have started to offer rental cars, especially in urban centers and resort areas where rental car demand is high. Here’s how to find potential options and common characteristics:
Top Brands Known to Offer Dealership Rentals
- Tesla: Tesla dealerships often offer demo drives and extended loaner vehicles, particularly in busy urban locations. In some high-demand markets, Tesla has tested short-term rentals.
- BMW: BMW dealers frequently offer test drives that extend into overnight or weekend use, especially for potential car buyers.
- Honda: Honda dealerships in some locations participate in rental programs, offering compact cars and popular SUV models to the community.
- Ford: Many Ford locations are part of national partner rental programs or offer in-house rentals to service customers.
- Lexus: Lexus centers often provide high-end loaner vehicles for service visits and may experiment with rental programs.
Dealership Size and Rental Availability
Dealership size is directly related to rental capacity:
- Large Dealerships: Multi-acre facilities with significant fleets (e.g., 400+ cars) have more flexibility. These locations often have in-house rental programs integrated with their service desks.
- Franchise Locations: Brand-affiliated dealerships, especially in major cities, are more likely to have formalized rental agreements through dealer associations or manufacturer programs.
- Small Independents: Independent used car dealers may not have enough inventory to support a rental branch unless there’s strong local demand for hourly or overnight rentals.
Geographic Influence on Dealer Rentals
Location plays a crucial role in determining if a dealership offers rental cars:
High-Demand Urban Markets:
In cities like New York, San Francisco, or Miami, dealerships in business zones or near airports may offer short-term rentals. With fewer parking spaces and a growing trend toward car-sharing, urban dealerships are exploring rental options to serve nearby commuters and short-term tenants.
Tourist and Vacation Areas:
In resort towns like Aspen, Orlando, Las Vegas, or Maui, car dealerships may host rental operations catering to travelers who expect a fresh, well-maintained vehicle with added options.
Rural Areas:
Rental options are rare in rural areas unless the dealership is part of a regional fleet-sharing or service guarantee program.
Are Dealership Rentals a Better Option Than Traditional Rentals?
While traditional rental companies like Enterprise and Budget dominate the market, dealership rentals do have distinct advantages for some consumers—particularly those considering a purchase.
Pros of Renting from a Dealership
| Advantage | Description |
|---|---|
| New Vehicle Inventory | Dealerships offer the latest model years, with cars having lower mileage and often equipped with the newest features. |
| High-Quality Service and Cleanliness | Because dealership vehicles are frequently part of service loaner programs, they are typically well-maintained and cleaned. |
| Purchase Possibility | Renting from a dealership can give a customer an extended trial of the car before purchasing it. |
| Manufacturer Incentives and Promotions | Some manufacturers sponsor special rental promotions for service customers or test drive programs, resulting in lower costs. |
Cons Compared to Traditional Rental Agencies
| Disadvantage | Description |
|---|---|
| Higher Daily Rates | Dealership rentals may cost more than traditional agencies, especially when they’re not part of a dealership loyalty program. |
| Less Flexible Booking Systems | Many dealerships don’t have online booking systems or the same convenience as traditional rental companies. |
| Limited Availability of Models | Dealerships often only rent the models they sell, so you won’t always find the variety you can expect elsewhere. |
| Fewer Locations and Operating Hours | Unless you’re located near a major dealership with multiple service and rental lanes, accessibility can be limited. |
How Can You Book a Rental Car from a Dealership?
Booking a rental car directly from a dealership involves a few more steps than using a traditional agency or app. However, with the right knowledge, it’s possible and sometimes worth it.
Common Booking Options
1. Contact the Dealership Directly
Most dealerships prefer calls or in-person visits for rentals, especially if you’re there for service work. You can often find a “Book a Rental” tab on the website, but phone contact is typically quicker.
2. Through Dealer Programs (Including Loaner Vouchers)
Some manufacturers and dealerships offer “loaner vouchers” to service customers who need a short-term replacement. These vouchers are processed through the service department during check-in.
3. Third-Party Integration via Turo-style Platforms or Enterprise Co-ops
A few dealerships are participating in car-sharing or peer-to-peer programs like Turo or Zipcar. Additionally, some are affiliated partners with Enterprise or National, making their rental inventory available through those companies.
What to Ask When Renting from a Dealership
To ensure you get the most value and avoid unexpected costs, it’s helpful to ask the following questions:
- What kind of insurance does your rental program offer?
- Are there mileage restrictions or usage limitations?
- Can I convert the rental into a test-drive for purchase consideration?
- Is there a 24-hour support line in case of breakdowns or roadside issues?
- Do you offer complimentary services like GPS, child seats, or premium tech integrations?
Comparing Dealership Rentals vs. Traditional Car Rental Companies
Let’s take a head-to-head look at some of the key aspects of car rentals—focusing on customer experience, cost, and convenience.
Customer Experience Comparison
| Aspect | Dealerships | Traditional Rental Companies |
|---|---|---|
| Vehicle Quality | Newer models, well-maintained | Varies widely—from low-mile to high-mile budgets |
| Purchasing Support | Integrated support if interested in ownership | Not applicable unless part of a leasing company |
| Service Options | Sometimes part of general mechanic service operations | Standard roadside assistance, no maintenance support |
| Customer Flexibility | High flexibility for existing service clients | Better for walk-in or out-of-network visitors |
Cost Comparison Overview
Daily Rental Rates:
- Traditional companies like Hertz or Budget may offer economy rentals for $25-$45/day after promotions.
- Dealership rentals, depending on brand, model, and location, often begin at $60/day for entry-level models and move into premium ranges (e.g., $150/day for an SUV like a Range Rover or Tesla).
Insurance Integration:
- Enterprise-style rentals often provide bundled coverage for $15–$20/day, which customers can opt out of if they have personal insurance or credit card protection.
- Dealerships may include insurance as part of the rental fee or direct the customer to use personal coverage — policies vary.
Payment Terms:
Dealerships sometimes expect upfront payment or a security hold, while rental companies often charge at drop-off.
Case Studies: Successful Dealership Rental Programs
Tesla’s Demo and Loaner Program
Tesla, known for disruptive models, pioneered a unique strategy:
- Tesla stores and service centers offer demo rides and encourage full-time rentals for several nights.
- The company occasionally allows non-owners to take vehicles for a trial period to support test drives for corporate or influencer partners.
- Tesla has experimented with opening up its “fleet of demonstrators” to local rentals for college students or travelers—particularly in California and New York.
Enterprise Rent-A-Car and AutoNation Partnership
In a notable case, Enterprise and AutoNation partnered to create a “Dealership Rental Center.” The collaboration brought dedicated rental operations to AutoNation dealerships across the U.S.
- These centers operate as joint partnerships where Enterprise maintains the rental fleet, while dealerships provide prime real estate and local traffic.
- The model benefits both parties—dealers benefit from consistent vehicle周转 (turnover), while Enterprise expands into high-traffic areas.
Community-Based Independent Dealerships
In smaller towns or markets such as Austin, Atlanta, or Salt Lake City, independent used dealers have launched modest rental programs.
- They often work with insurance agencies or auto repair shops to provide temporary vehicles for customers in need.
- Some offer nightly rentals of popular SUVs to weekend travelers or local customers avoiding a long wait at traditional agencies.
Why the Trend Toward Dealership Rentals Is Growing
As the automotive industry restructures around customer experience and integrated ownership journeys, dealership rentals are receiving renewed attention. Here are some key trends fueling this growth:
Blurring Line Between Owning and Sharing
More consumers are shifting from ownership to car-sharing, and dealerships are looking for flexible models that keep them engaged beyond a traditional car sale.
Increased Importance of Customer Retention
Rental models keep the customer connected to the brand. If someone rents a BMW for a week, they are more likely to consider buying one next time.
Integration with Technology
With EVs and advanced infotainment systems, dealerships want customers to understand and appreciate features during test or rental periods before purchase.
Post-Pandemic Shift
The pandemic accelerated digital integration and increased hygiene demand. Dealerships have an opportunity to position themselves as premium, safe, and brand-matched rental options.
Final Thoughts
To restate clearly: Do dealerships offer rental cars? Yes, but not all dealerships do, and offerings can vary dramatically by brand, location, and intent. If you’re a regular service, someone considering a test drive, or seeking a high-quality temporary vehicle in a niche market, rental cars from dealerships can be a premium option with added flexibility.
Understanding the nuances of dealership rental programs allows you to make informed decisions and tap into often-overlooked services that large rental agencies don’t provide—like experiencing your potential car for days before purchase or receiving a well-maintained loaner during vehicle service.
When searching for dealership rentals, always check directly with the dealer, inquire about their offerings, and compare pricing options. It’s also wise to look for dealership websites that mention “loaner vehicles,” “test drive extensions,” or “car rentals” in their service sections.
By combining the best of ownership experiences, brand recognition, and customer trust, dealership rentals are quietly gaining traction and proving to be more than just a passing trend.
Do all car dealerships offer rental cars?
Not all car dealerships offer rental cars, but many dealerships do provide this service to their customers. The availability of rental cars typically depends on the dealership’s size, location, and manufacturer affiliations. Larger dealerships, especially those associated with major car brands, are more likely to have rental programs in place. These programs are often designed to accommodate customers who need a temporary vehicle while their car is being serviced or repaired under warranty.
However, some dealerships may prefer to partner with local rental agencies instead of maintaining their own rental fleet. In such cases, they may still arrange a rental vehicle for you at a discounted rate. If you’re planning to visit a dealership and anticipate needing a rental, it’s best to call ahead and inquire about their specific rental policies and availability. This will help ensure you have a clear understanding of what to expect and avoid last-minute inconveniences.
Is there a cost for rental cars at dealerships?
The cost of rental cars at dealerships varies depending on several factors, including the dealership’s policies, the type of vehicle you need, and the duration of the rental. Some dealerships, particularly when your vehicle is undergoing warranty repairs or routine maintenance, may offer complimentary rental cars as a customer service benefit. This is especially common during extended servicing periods where your vehicle may be at the dealership for several days.
In other situations, especially when the service is not covered under warranty or when demand is high, dealerships may charge a daily fee for rental cars. The rate can be comparable to those offered by third-party rental agencies, but may include added benefits like insurance coverage or free pick-up and drop-off. It’s wise to clarify all potential costs with the dealership before committing to a rental to ensure there are no surprises upon checkout.
How long can I rent a car from a dealership?
The length of time you can rent a car from a dealership depends largely on the dealership’s rental program and the reason for the rental. If your vehicle is undergoing repair covered under warranty, dealerships often provide rental cars for the duration of the service period, which can range from a few hours to several days. Some dealerships even extend this service to customers who are test-driving vehicles or considering a purchase.
For extended rentals beyond a few days, availability may be limited unless the dealership has a larger fleet or rental agreement with a partnering service. If you anticipate a longer need for a rental car, it’s best to ask about options upfront. Some dealerships may be able to provide alternative solutions, such as coordinating with a rental agency or offering a loaner vehicle at a discounted rate for extended use.
What types of vehicles are available for rental at dealerships?
Dealerships typically offer a selection of rental vehicles that reflect their inventory, meaning the rentals are usually the same or similar models from the brand they represent. Common rental options include compact sedans, midsize cars, SUVs, and sometimes luxury or newer models as loaners. These vehicles are often well-maintained and come with added assurance due to their dealership service history.
The availability of specific types of vehicles may depend on the size of the dealership and the current demand. For example, a weekend may see limited selection due to high usage, while weekday mornings often provide more variety. If you have a specific need—such as a vehicle with higher ground clearance or a family-friendly SUV—it’s best to ask in advance to confirm if that type of rental is available or if alternatives can be arranged through a partner company.
Do I need to make a reservation for a dealership rental car?
While not always required, it’s highly recommended to make a reservation for a dealership rental car, especially if you have a specific date or time in mind. Many dealerships operate on a first-come, first-served basis, and availability can be limited during peak times or busy seasons like holidays. Scheduling ahead ensures that a vehicle will be ready when you arrive and reduces the chance of disappointment.
To reserve a car, you can contact the service or rental department of the dealership directly, either via phone or online if they offer that feature. Some dealerships may also coordinate with rental agencies and offer to book a vehicle on your behalf if they’re out of stock. Even if reservation isn’t mandatory, a quick call can help streamline the process and make your experience smoother.
Can I rent a car from a dealership if I didn’t purchase my car there?
Yes, in many cases you can rent a car from a dealership even if you didn’t purchase your vehicle there. While some dealerships prioritize rentals for customers who service or buy vehicles from them, others open the service to the general public. It’s worth checking with the specific dealership to see their policy on rental availability for non-customers.
Additionally, dealerships may require some form of identification, a valid driver’s license, and a credit card to hold the reservation. If your own vehicle is being worked on at the dealership, they’re more likely to honor your request for a rental. However, if you’re simply seeking a temporary vehicle without an active service appointment, their willingness to rent may depend on availability and local policies.
Are dealership rental cars insured?
Dealership rental cars often come with insurance coverage, but it’s important to confirm the details before driving off the lot. Many dealerships include basic insurance in the rental fee, particularly when the vehicle is provided during warranty repairs or major services. This coverage typically includes liability protection and sometimes collision damage waiver (CDW), but may not include personal accident insurance or coverage for personal belongings inside the vehicle.
Alternatively, if the dealership charges a fee for the rental or offers you an upgraded vehicle, they may require you to use your own auto insurance or offer additional coverage options for purchase during check-out. Always review the insurance terms provided by the dealership and coordinate with your insurer if necessary to ensure you are adequately covered during the rental period.