Hertz invested heavily in electric cars, buying fleets of them for various rental locations all over the world.
It didn’t seem like customers were all that interested in driving them, however. The rental chain lost around $2 billion on the move.
And in response, TikToker Chris Pearce (@thechristopherpearce) states, the brand is offloading them at bargain bin prices. Additionally, customers who rent EVs from Hertz are purportedly receiving emails asking if they want to purchase the vehicle outright.
Is Hertz getting rid of all its electric vehicles?
“Hertz is so desperate right now. They are literally begging EV renters to purchase the car they’re currently renting right now,” Pearce claims in his video. “And you could low-key get them for a steal. One guy was offered a [Tesla] Model 3 that he was currently renting for less than $18,000. With less than 30k miles.”
According to Inside EVs, Hertz is selling off its fleet. They report that one can get a Tesla Model 3 for under $20,000—though it’s more likely to have a higher mileage. Considering the $4,000 federal tax credit on used electric vehicles, you could score one for roughly $15,000.
“It sounds like a steal but let’s look further into it,” Pearce says. “Hertz is dumping their EV fleet right now. Mostly because they almost put them out of business. Selling Polestars and Teslas that they spent millions on for dirt cheap. Mostly because of steep depreciation. One Reddit user shared an email that they got from Hertz while they were currently renting a Tesla Model 3.”
The Reddit post Pearce refers to does offer a Tesla Model 3 with under 30,000 miles for roughly $18,000.
“The email was offering to sell him the 2023 Tesla Model 3 with less than 30,000 miles on it. For just $17,000. And that’s actually insanely cheap for a used Tesla,” Pearce says. “But of course buying an ex-rental always comes with risks. You’re almost guaranteed that this thing has been driven into the ground. And more than likely also abused. So it might be a steal, but maybe not for the long term.”
“To me, this signals that Hertz is not looking good,” he concludes. “And they’re really regretting their big EV investment they made a couple years back. But it begs the question: would you buy an EX rental Tesla?”
What does Hertz have to say?
Hertz told the Daily Dot that the brand is not making an intentional effort to get rid of electric vehicles specifically—car sales are simply part of its business model.
Sometimes Hertz sells newer model vehicles for discounted prices simply because they notice its consumer base doesn’t have as much of a demand for them. The brand does the same with gas-powered cars as well.
“Hertz not only rents cars; we sell them, too,” a Hertz spokesperson told the Daily Dot in an email. “While used EVs are relatively rare in the market, we price our vehicles based on current market trends and mileage to ensure fair pricing. This presents an excellent opportunity to buy an EV at a competitive price, backed by our 7-day money-back guarantee and comprehensive 115-point inspection.”
Hertz’s EV inventory
Hertz’s used car sales section on its website indeed has a section dedicated to electric vehicles. And they are exceedingly cheap.
For instance, you can nab a 2023 Chevrolet Bolt EV 1LT Wagon for just $14,900—and it’s got less than 22,000 miles on it. By and large, if you’re looking for the cheapest possible EV to get from Hertz, Bolts look like the way to go.
And, like many EV models, the Bolt’s battery is covered under warranty. An eight-year 100,000-mile plan can help allay fears for some buyers who worry this component might fail. The massive batteries that power EVs are easily their most costly component to replace. For instance, the Bolt’s would run $16,000 to $16,500 to swap out—more than the car’s current cost.
There are luxury offerings as well. Hertz is selling a 2023 Mercedes Benz EQB for almost half of its original MSRP. A sub-20,000-mile model in Arizona is selling for $29,000, and a $30,000 one has 8,500 on the odometer. You can nab Subaru Solterras for $28,000 and under, along with a few 2022-2023 Tesla Model 3’s. A 2023 Kia EV6 is on sale for $32,000, which may give long-term owners the most peace of mind. The brand’s 100,000-mile warranty covers both its battery and drive train.
Interestingly enough, despite having the highest stockpile of Ford Mustang EVs, they’re some of the most expensive. Like this $44,000 one in Orlando, Florida.
Are electric vehicles depreciating?
While automobiles in general are known to be terrible long-term investments, EVs are particularly egregious.
That’s because some models can lose as much as half of their value in a single year. This is primarily attributed to the complexities involving repair protocols along with exorbitant service charges for a lithium-battery pack swap.
Many auto repair shops have zero idea of how to go about servicing an EV’s more intricate components. Due to this, purchasing repair coverage from a reputable insurance company is either difficult or prohibitively expensive.
Furthermore, because EV tech is so new, there aren’t that many auto techs versed in these repair complexities. This might just leave you with an expensive brick after you’ve at least hopefully driven it into the ground.
The Daily Dot previously reported on a Tesla Model S Owner who purchased the whip for $140,490 in 2022. After putting around 37,000 miles on the car, he wanted to see how much Tesla was offering him for it two years later: $46,400. That’s right—he was told his vehicle was worth about a third of its MSRP in 24 months.
Should you get one?
Depending on the expectations from your vehicle, a used EV could still be a good buy. First, inquiring into the manufacturer’s warranty and if they offer extended ones could help protect you in the long run.
If that’s not an option, there’s still some hope. The prevalence of auto techs competent in servicing EVs pales in comparison to gas-engine-focused gearheads. However, that doesn’t mean they don’t exist. If you live in an area near a reputable tech that services EVs, you might be able to save some coin in the event something does happen.
Even a dreaded battery pack replacement, many EV experts find, has no business costing that much to repair. Oftentimes, just a single battery cell or two needs to be replaced. Trouble is, extracting the battery and testing the cells isn’t exactly an easy process.
Moreover, the combustible nature of heavy lithium-ion battery packs makes them hazardous to deal with. But, if you are dead set on buying a cheap, used EV, it’s good to know there are options once they’re out of warranty.
@thechristopherpearce Hertz is in bad shape, you can take advantage #carnews ♬ original sound – Chris Pearce
TikTokers aren’t convinced
Numerous folks who responded to Pearce’s video seemed to think that the risk just wasn’t worth it. “I wouldn’t buy any Tesla… period,” one person remarked.
Another penned, “$17k is a hard pass for an abused Model 3.”
It seems that several folks didn’t put much faith in the rental car company’s ability to maintain fleets. “Hertz doesn’t take care of there cars…forget it! #hertz #cars #rental,” one user wrote.
One person said that while they weren’t interested in a Tesla, Polestar (a Volvo offshoot) appealed to them: “Tesla no but I’d consider a Polestar.”
Several folks seemed to think, however, that the “abuse” electric vehicles endure isn’t as intense as their ICE counterparts. “People saying abuse like it’s an engine. The only abuse will likely be cosmetically which could be a minor fix.”
And there was at least one Hertz used car buyer in the comments who was happy with their experience. “I bought a used 2019 chevy sonic from hertz in july 2020. 22k miles and no issues from it’s minnesota life of rental life,” they said.
The Daily Dot has reached out to Hertz, Pearce, and Tesla via email for further comment.
