Hertz, the world’s leading car rental service, has announced that it will be auctioning off its fleet of own electric vehicles that have reached the end of their operational lifespan. This includes approximately 20,000 cars in the United States, which accounts for roughly one-third of Hertz’s global electric vehicle inventory. The auction is set to take place throughout the year 2024.
Hertz’s electric car fleet consists of various models, with the majority being Tesla Model 3. Hertz purchased a large batch of 100,000 Model 3 vehicles in 2021, and interested buyers have the option to view information and make purchases directly through the Hertz website. The lowest reported price stands at $17,700, which is considerably lower compared to the current starting price of $35,900 on Tesla’s official website.
According to Electrek, the reason behind these lower prices for the Hertz Model 3 vehicles is due to their extensive usage, high mileage (within just 2 years), and subpar condition that often comes with rental cars. Renters tend to be less cautious compared to private car owners. However, for those willing to accept these factors, it presents an opportunity to purchase a Model 3 at a discounted price.
Another interesting aspect worth noting is that Hertz disclosed to the U.S. Securities and Exchange Commission that a portion of the revenue generated from the electric car sales will be reinvested in purchasing new gasoline-powered vehicles. This is because there is still a demand for rental cars, and this round of vehicle sales will help Hertz adjust the proportion of its electric car inventory to better suit its business needs.
TLDR: Hertz, the global car rental giant, is auctioning off around 20,000 electric vehicles, mainly consisting of Tesla Model 3, that have reached the end of their usage. The prices are notably lower due to extensive usage and less optimal condition resulting from rental car operations. A portion of the revenue from the sales will be used to purchase new gasoline-powered vehicles, aligning Hertz’s inventory with the demands of its rental business.
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