Hertz is selling 20,000 electric vehicles, including Tesla Model S sedans, to balance supply and demand. Experts weigh in on the potential deals and considerations when buying used EVs.
Hertz Global Holdings Inc. is offering a unique opportunity for car buyers to enter the Tesla market at a more affordable price. The rental-car company announced that it will be selling approximately 20,000 electric vehicles from its fleet, including several Tesla Model S sedans. This strategic move aims to better balance the supply and expected demand for electric vehicles, allowing Hertz to retire a number of lower-margin rentals and reduce expenses related to damage on EVs.
This marks a significant shift for Hertz, as the company had previously made a substantial investment in electric cars in 2021 by placing an order for 100,000 vehicles from Tesla. At that time, Tesla's valuation skyrocketed above $1 trillion as a result of this deal.
But is purchasing one of these EVs from Hertz a good deal for potential buyers?
According to experts, it's not that straightforward.
Sean Tucker, senior editor at Kelley Blue Book, examined Hertz's existing listings for used Teslas and shared his "mixed feelings" about the prices.
"These used EVs are surprisingly reasonably priced," he commented.
Current listings on the Hertz website range from a 2021 Tesla Model 3 Standard Range Plus Sedan with 31,647 miles priced at $20,125, to a 2022 Tesla Model Y Long Range SUV with 92,789 miles priced at $40,886.
Tucker pointed out that many of these vehicles already have high mileage, even though they are only about a year old. This could be a concern for some buyers.
A spokesperson for Hertz stated that "Hertz Car Sales offers competitive pricing at a non-negotiated price" and that the vehicles are available for purchase both online and at physical sales locations.
In addition to Tesla, Hertz is also selling various other electric vehicle makes and models, with more to come in 2024, according to the spokesperson. The company offers a "Rent2Buy program" where potential buyers can rent a vehicle for up to three days or take a free two-hour test drive. Rental charges are waived if the vehicle is purchased.
When contemplating the purchase of a used electric vehicle, mileage may not be the most crucial factor to consider, according to Jeremy Robb, senior director of economic and industry insights at Cox Automotive. Instead, he emphasizes the importance of assessing the battery's quality and the condition of the tires, as they tend to wear out more quickly in comparison to traditional gas-powered cars.
As a professional copywriter, I understand the concerns many buyers have when it comes to purchasing a used electric vehicle (EV). One major factor to consider is the battery, which comprises nearly 60% of the vehicle's value and degrades with use, according to expert Tucker.
To ensure peace of mind, Tucker recommends having the vehicle inspected by an independent mechanic who possesses a deep understanding of EVs. Additionally, it is crucial to have the tires checked as EVs are heavier than traditional gas-powered cars and require special tires capable of handling the added wear and tear caused by the weight of the battery.
Of course, when it comes to buying a used car, including Tesla models from Hertz's fleet, the fundamental rules of used-car buying still apply. It is unwise to purchase a car without inspecting it first, advised Tucker. If Hertz or any other seller refuses to let you bring your own mechanic for an inspection, it's best not to proceed with the purchase.
It is worth noting that Hertz is a reputable rental company, as Robb attests. He believes that the vehicles they sell will generally be in excellent condition. However, there are several other factors to consider when buying an electric vehicle, new or used. Robb and Tucker both emphasize the importance of evaluating your usage requirements, such as how often you will use the vehicle and whether you have the means to charge it at home. The availability and quality of charging infrastructure in your area should also factor into your decision-making process.
For many buyers, this sale presents an excellent opportunity to own a used Tesla at an affordable price point. Tucker adds that it might be the most cost-effective route into EV ownership currently available. If you have been eagerly awaiting a more economical way to enter the world of EVs, Hertz's sale is definitely an offer worth considering.
Robb shares a similar sentiment, stating that this sale might be an attractive option for consumers who have been contemplating the purchase of a used EV. It's highly likely that some of these units will be available at a more competitive price point.
In summary, while buying a used EV requires careful consideration, Hertz's sale provides an enticing opportunity to own an electric vehicle, particularly a Tesla, at an affordable price. Remember to take necessary precautions such as inspecting the vehicle and consulting with experts before making your decision.
All Rights Reserved © 2024
Leave Comment