Exciting EV Offers from Hertz
In a surprising move, Hertz is actively promoting the sale of its electric vehicle (EV) rentals, offering customers unique opportunities to purchase the cars they’ve been driving. Recently, a Reddit user revealed an enticing offer from Hertz, where they could buy a 2023 Tesla Model 3 for $17,913.
Initially, Hertz made a bold entry into the EV market, planning to acquire 100,000 Model 3s by the end of 2021. However, after 16 months, only about 50,000 had been added to their fleet. Struggles with repair costs—with Teslas costing approximately 20% more to fix than other models—and lower than expected customer interest led them to rethink their strategy. Last January, Hertz announced they would sell off 20,000 EVs.
This tactic of selling rental vehicles isn’t entirely new for Hertz. In the past, they’ve connected renting customers with their sales channels, raising awareness of available vehicles for purchase. As part of this effort, Hertz provides a 12-month, 12,000-mile powertrain warranty for every EV sold, along with a grace period allowing customers to return the car within seven days if they change their minds.
While the company once had a stock of over 2,100 battery electric vehicles (BEVs) for sale, just 175 remain available, indicating a fast-paced sell-off in a changing market.
Electric Vehicles Sales: Hertz’s New Strategy
Hertz’s Electric Vehicle Sales Initiative
Hertz is reshaping its operations by not only renting electric vehicles (EVs) but also offering them for sale, thereby opening up an innovative avenue for customers. This move allows renters to buy the EVs they’ve leased, which has become particularly appealing for many. A standout offer recently revealed on social media included a 2023 Tesla Model 3 for an eye-catching price of $17,913, drawing significant attention.
Hertz’s Bold EV Fleet Expansion
In a decisive shift towards modernization, Hertz initially pledged to acquire 100,000 Tesla Model 3s to bolster its electric fleet by the end of 2021. However, as of early 2023, the company reportedly added only about 50,000 of these vehicles due to various challenges. Notably, Hertz faced higher repair costs—approximately 20% above those of conventional vehicles—and struggled with demand, prompting a strategic pause and a reevaluation of their electric vehicle program.
The Sell-off Strategy
In response to inventory challenges, Hertz announced a plan to dispose of 20,000 of its EVs. Historically, the company has linked its rental vehicles to sales opportunities, thereby enhancing customer engagement and purchase awareness. Every electric vehicle purchased from Hertz comes with a 12-month, 12,000-mile powertrain warranty, alongside a seven-day return policy—an attractive incentive for prospective buyers.
Market Trends and Insights
The current EV market is witnessing a rapid transformation, with Hertz’s sell-off of EVs indicating a swift response to changing consumer attitudes and economic pressures. As of now, only 175 battery electric vehicles remain available for sale from a previous inventory of over 2,100, signaling a fluid market dynamic.
Pros and Cons of Purchasing an EV from Hertz
Pros:
– Competitive pricing on popular models like the Tesla Model 3.
– A warranty and a flexible return policy.
– Direct access to vehicles customers are already familiar with.
Cons:
– Limited availability as the sell-off progresses.
– Higher long-term maintenance costs associated with electric vehicles.
– Potential inventory shortages as Hertz transitions their fleet.
Conclusion
Hertz is making notable strides in the EV sector, taking calculated steps to adapt its business model to new trends. While challenges arise from the higher operational costs and fluctuating customer interest, their innovative approach to selling rented EVs presents a unique opportunity for consumers and represents an exciting development in the rental and automotive markets.
For further insights on electric vehicles and rental services, visit Hertz.