Hertz, the prominent rental car company, has signaled a strategic shift away from electric vehicles (EVs) in its U.S. fleet, employing an unusual approach to pare down its inventory.
In January, Hertz announced plans to divest 20,000 EVs from its fleet, citing escalating depreciation and repair costs. The company requested Polestar to release it from its EV supply contract, a request that Polestar accepted under specific conditions.
As the year has progressed, Hertz is reportedly taking a novel route by offering current renters the opportunity to purchase the EVs they are using rather than listing them for sale on public platforms.
A user on the r/HertzRentals subreddit shared their experience of renting a Tesla Model 3, which came with an offer to buy the vehicle for $17,913 (approximately A$28,727). This 2023 model has accrued less than 30,000 miles (about 48,000 kilometers) on its odometer. Another renter posted that they had been presented with a chance to buy a Polestar 2 for $28,500 (around A$45,700).
Interestingly, these offers extend beyond electric vehicles. One user recounted receiving an email offering a Ford Mustang EcoBoost with just 7,000 miles (11,295 kilometers) for $31,000 (approximately A$49,700).
Past analyses have highlighted Hertz’s vulnerability to market fluctuations, as the company outright purchases its fleet vehicles rather than opting for the more conventional practice of having resale guarantees with manufacturers.
This turbulent chapter follows the resignation of former CEO Stephen Scherr, who departed earlier this year after a brief 26-month tenure. He inherited plans to increase Hertz’s U.S. fleet composition to at least 25 percent electric vehicles by 2025—a goal that was initiated with a significant order of 100,000 Teslas.
It’s worth noting that this order was made at full retail price, deviating from the common practice of rental companies securing discounts from automakers.
In the Australian market, the Polestar 2 remains the sole electric vehicle available for rental through Hertz.
Over the past year, Hertz’s stock has taken a substantial hit, plummeting by 67 percent to $3.42 per share, a stark contrast to its peak of $34.85 in November 2021.
For further details, read more on why Hertz is reducing its electric car fleet and the implications following the departure of its CEO.
Source:www.carexpert.com.au
