The current sales push is part of Hertz’s plans to sell off 20,000 EVs from its fleet, partly due to high repair costs. Of that total, 657 Tesla models were reportedly available on the company’s car sales website.
Hertz’s low pricing for its on-sale Tesla EVs is indeed enticing for budget-conscious buyers. However, it is important to take note of some considerations to ensure that buying a used car from a rental company would be worth it.
Most of the currently available electric cars from Hertz’s fleet are already high-mile units with limited to no warranties left.
For instance, the listed 2021 Tesla Model 3 SR Plus Sedan on Hertz’s website already has 92,789 miles. In contrast, a personally owned used Tesla Model 3 on Kelley Blue Book’s website only consumed 46,171 miles for $27,995.
In addition, these units have already undergone numerous DC fast charging that could have degraded the battery.
The used Tesla EVs from Hertz’s fleet may also have multiple wear and tear from serving random people since they hit the market.
That said, maintenance is indeed a key consideration when shopping for a used EV. They tend to need more frequent maintenance than new units from the factory.
In fact, one of the main reasons behind Hertz’s decision to step back from its partnership with Tesla is the increasing maintenance costs. Tesla EVs tend to be challenging to service partly due to their complex advanced technologies.
Interested customers must also consider the additional costs of home charging infrastructure, as doing so can enable them to truly benefit from owning an electric vehicle.
These chargers have a price range of $250 to $750, excluding installation expenses that can reach about $1,600.
The energy usage price for overnight charging varies from state to state, but they all tend to be expensive.
Hertz may also be considering the high and fast depreciation of its used Tesla EVs, prompting it to sell them off.
According to iSeeCars’s recent study, electric cars pose a 49.1% average depreciation rate in just five years. It indicates a significant increase from the 38.8% industry average.
Nonetheless, Tesla Model 3s were found to have the lowest five-year depreciation rate of 42.9%. However, it can suffer from a faster depreciation pace due to Tesla’s major price cuts and discounts.
All that said, it would be important for used car buyers to bring an independent electric vehicle mechanic or technician to check the Tesla unit they are eyeing. Doing so will prevent them from future issues with their used EV purchase.