Should you take advantage of Hertz electric vehicle deals?

Hertz invested heavily in electric cars and purchased fleets of them for various rental locations around the world.

Will Hertz phase out all of its electric vehicles?

“Hertz is so desperate at the moment. “They are literally begging EV renters to buy the car they are renting,” Pearce claims in his video. “And you could get them discreetly at a bargain price. A man was offered a (Tesla) Model 3 that he was currently renting for less than $18,000. With less than 30,000 miles.”

According to Inside EVs, Hertz is selling its fleet. They report that you can get a Tesla Model 3 for less than $20,000 – although it’s more likely to have higher mileage. Considering the $4,000 tax credit for used electric vehicles, you could get one for about $15,000.

“It sounds like a bargain, but let’s take a closer look,” says Pearce. “Hertz is currently divesting itself of its electric vehicle fleet. Especially because they almost put them out of business. They sell Polestars and Teslas they spent millions on dirt cheap. Mainly because of the high depreciation. A Reddit user shared an email he received from Hertz while he was renting a Tesla Model 3.”

The Reddit post Pearce is referring to offers a Tesla Model 3 with less than 30,000 miles for about $18,000.

“The email offered to sell the 2023 Tesla Model 3 with less than 30,000 miles. For just $17,000. And that’s actually incredibly cheap for a used Tesla,” says Pearce. “But of course buying an old rental apartment is always associated with risks. It’s almost certain that this thing was driven into the ground. And most likely abused too. So it might be a bargain, but maybe not in the long run.”

“To me, this is a signal that Hertz is not doing well,” he concludes. “And they really regret the big investment in electric vehicles they made a few years ago. But the question arises: Would you buy an EX rental Tesla?”

What does Hertz say?

Hertz told the Daily Dot that the brand is not making a deliberate effort to specifically phase out electric vehicles — selling cars is simply part of its business model.

Sometimes Hertz sells newer vehicle models at discounted prices simply because Hertz determines that there isn’t as much demand for them among its customer base. The brand also does the same with gasoline-powered cars.

“Hertz doesn’t just rent cars; We also sell them,” a Hertz spokesperson told the Daily Dot in an email. “While used electric vehicles are relatively rare on the market, we price our vehicles based on current market trends and mileage to ensure fair pricing. This represents an excellent opportunity to purchase an electric vehicle at a competitive price, backed by our 7-day money-back guarantee and a comprehensive 115-point inspection.”

Hertz’s electric vehicle inventory

Hertz’s used car sales section of its website actually has a section dedicated to electric vehicles. And they are extremely cheap.

For example, you can get a 2023 Chevrolet Bolt EV 1LT Wagon for just $14,900—and it has fewer than 22,000 miles on it. Overall, if you’re looking for the cheapest electric vehicle from Hertz, Bolts is the way to go.

And like many electric vehicle models, the Bolt’s battery is covered under warranty. An eight-year, 100,000-mile plan may help allay fears for some buyers that this component will fail. The massive batteries that power electric vehicles are easily the most expensive component to replace. For example, replacing the Bolt would cost $16,000 to $16,500 – more than the car’s current cost.

There are also luxury offers. Hertz is selling a 2023 Mercedes Benz EQB for almost half the original MSRP. A model with less than 20,000 miles sells in Arizona for $29,000, and a $30,000 model has 8,500 on the clock. You can purchase Subaru Solterras for $28,000 and less, along with some 2022-2023 Tesla Model 3s. A 2023 Kia EV6 is offered for $32,000, which may provide the most peace of mind for long-term owners. The brand’s 100,000-mile warranty covers both the battery and the powertrain.

Interestingly, despite having the largest inventory of electric vehicles, Ford Mustang electric vehicles are among the most expensive. Like this one for $44,000 in Orlando, Florida.

Do electric vehicles lose value?

While cars in general are notoriously terrible long-term investments, electric vehicles are particularly egregious.

Some models can lose up to half of their value in a single year. This is primarily due to the complexity of the repair protocols as well as the exorbitant service fees for replacing a lithium battery pack.

Many auto repair shops have no idea how to service the more complicated components of an electric vehicle. For this reason, obtaining repair insurance from a reputable insurance company is either difficult or prohibitively expensive.

Additionally, because electric vehicle technology is so new, there aren’t many auto technicians skilled at these complex repairs. This could leave you with just an expensive brick left after at least hopefully driving it into the ground.

The Daily Dot previously reported on a Tesla Model S owner who purchased the Whip in 2022 for $140,490. Two years later, after putting around 37,000 miles on the car, he wanted to see how much Tesla was offering him for it: $46,400. That’s right – he was told that his vehicle was worth about a third of the MSRP in 24 months.

Should you get one?

Depending on your expectations for your vehicle, a used electric vehicle could still be a good purchase. First, find out about the manufacturer’s warranty and whether they offer an extended warranty to protect you in the long term.

If that’s not an option, there’s still hope. The prevalence of automotive technicians skilled at servicing electric vehicles pales in comparison to gearheads who focus on gasoline engines. However, that doesn’t mean they don’t exist. If you live near a reputable technician who services electric vehicles, you may be able to save some money if something happens.

According to many electric vehicle experts, even the dreaded replacement of a battery pack does not involve such high repair costs. Often only one or two battery cells need to be replaced. The problem is that taking out the battery and testing the cells isn’t exactly a simple process.

In addition, handling heavy lithium-ion batteries is dangerous due to their flammability. However, if you’re determined to buy a cheap, used electric vehicle, it’s good to know that there are options once the warranty is up.

@thechristopherpearce Hertz is doing bad, you can take advantage of #carnews ♬ Original sound – Chris Pearce

TikTokers are not convinced

Numerous people who responded to Pearce’s video seemed to think the risk simply wasn’t worth it. “I wouldn’t buy a Tesla…period,” one person remarked.

Another wrote: “$17,000 is a hard pass for a battered Model 3.”

It seems some people didn’t have much confidence in the rental car company’s ability to maintain fleets. “Hertz doesn’t care about its cars…forget it! #Hertz #Cars #Rental,” one user wrote.

One person said that while they weren’t interested in a Tesla, Polestar (a Volvo offshoot) would appeal to them: “Tesla no, but I would consider a Polestar.”

However, some people seemed to feel that the “abuse” that electric vehicles receive is not as intense as their internal combustion engine counterparts. “People say insults like it’s an engine. The only abuse will likely be cosmetic, which could be a minor correction.”

And in the comments, there was at least one Hertz used car buyer who was happy with their experience. “I purchased a used 2019 Chevy Sonic from Hertz in July 2020. 22,000 miles and no Minnesota or rental life issues,” they said.

The Daily Dot has emailed Hertz, Pearce and Tesla for further comment.