Have you ever heard the term “program cars” and wondered what it actually means? Advertisements often use catchy phrases like “executive cars,” “demo models,” or “fleet vehicles,” and “program cars” sounds like it might be another term in the same vein. You’re right to be curious! Let’s decode this term and understand what a program car really is and if it could be the right choice for your next vehicle.
The term “program car” primarily refers to vehicles that were formerly part of rental car fleets. The name originates from what’s known as a “repurchase program.” Car manufacturers sell a significant volume of vehicles to major rental companies like Hertz, Avis, and National, often at discounted rates. Historically, these rental companies would utilize these cars for a period, typically around six months, and then directly sell them into the used car market.
However, in the early 1990s, car dealerships voiced concerns. They argued that the influx of these nearly new rental cars was creating unwanted competition for their own used car inventories, and even impacting new car sales. This led to a change in the system. Now, under these “repurchase programs,” manufacturers buy back the majority of these vehicles from the rental companies. These cars are then auctioned off exclusively to franchised dealerships of the same brand. These dealerships then retail them to the public as “program cars,” sometimes also referred to as “repurchased rental cars.”
So, what’s the appeal of a program car? These vehicles are typically quite young, generally around six months old, and have accumulated mileage in the range of 12,000 to 15,000 miles. Furthermore, because rental companies maintain their fleets diligently, program cars are often in remarkably good mechanical condition. This combination of relatively low mileage, recent model year, and maintained condition can make program cars an attractive option for buyers seeking a reliable vehicle at a potentially lower price point compared to brand new cars. They offer a sweet spot, bridging the gap between a brand-new car and a traditionally older used vehicle.
