After it ordered more than 100,000 EVs in 2022, Hertz is dumping a large chunk of its fleet to cut costs.
On Thursday, Hertz Global Holdings announced it would drop one-third of its total electric car fleet, after pledging a major buildup of Tesla and Polestar cars in 2022. According to the company, “expenses related to collision and damage, primarily associated with EVs, remained high in the quarter, thereby supporting the company’s decision to initiate the material reduction in the EV fleet.”
Hertz reported a $245 million quarterly loss in its earnings call, covering the fourth quarter of 2023. As many private EV owners have experienced, even minor fender benders can lead to major repair bills, so Hertz is once again making waves by selling off scores of electric cars, and will allocate that money back toward purchasing internal combustion vehicles that have lower repair costs and better resale values.
That could mean great news if you’re looking to score a deal on an all-electric car, though. Thanks to depreciation taking a wallop to second-hand EV values, you can possibly snag a deal through the Hertz Car Sales website. Its “Rent2Buy” program even lets you book/rent the car for up to three days at a discounted rate to check out if it’s a good fit. If you decide to buy the car, you can do so through the website and get the rental fee back as part of the deal.
At time of writing, Hertz has no fewer than 684 electric vehicles available for sale, again mostly Teslas. However, you can score a BMW i3, Chevy Bolt or Kia EV6, with some costing as little as $20,125. Thanks to the Inflation Reduction Act (IRA), these cars may even be eligible for a $4,000 federal tax credit dedicated toward used EVs. We haven’t been able to independently confirm that at this point, but if you were able to line that up, snagging a $16,000 Tesla Model 3 Standard Range may be an enticing proposition.
Keep in mind, though, the factors that are compelling Hertz to sell these EVs in the first place. Depreciation will continue to impact these EVs, and you may face higher insurance rates against an equally valued ICE car thanks to the high repair bills. At the end of the day, as well, these are still ex-rental cars…so take that for what you will. Although EVs don’t have many of the maintenance pain points of a gasoline vehicle, it’s not like folks are known to be kind to rental cars.
