Hertz to sell used cars directly to dealers

Hertz to sell used cars directly to dealersThe car rental company Hertz has recently announced that it will launch a "Dealer Direct" website, which will inform dealers of its inventory of used cars and allow them to buy directly from the rental firm.

Dealers will be able to search Hertz's inventory of used rental cars for sale by vehicle type and location, and the website will inform dealers when vehicles they are interested in become available, according to The Associated Press.

Hertz has said that the online marketplace may lower the prices dealers pay for vehicles, as it cuts out the middleman and the transaction fees such an agent typically collects. Through a direct purchase, dealers may end up paying less.

Whether a used car dealer will end up passing the savings onto the consumer has yet to be seen. To attain a better bargaining position in the dealership, drivers may want to fill out a car loan application so that they can come to the negotiating table from the strong position of an all-cash buyer who has been pre-approved for car financing.