Hertz Cuts Prices on Used EVs to Boost Sales

Overview: Hertz Global Holdings HTZ has begun selling its used electric vehicles at significantly reduced prices, with listings starting at nearly $12,000.

Details on Available Vehicles: The company is offering a model year 2023 Chevrolet Bolt EV in Denver for just $11,985, making it an attractive deal for potential buyers. While the majority of their lower-priced electric vehicles are Chevrolet Bolts, Hertz has added options from other brands, including Tesla and Subaru.

For example, a 2022 Tesla Model 3 base sedan in Oklahoma is available for $17,921, while a 2023 Subaru Solterra Premium SUV in Denver is priced at $20,581. Currently, Hertz lists 199 electric vehicles for sale, with the highest-priced option being a Ford Mustang Mach-E GT SUV in Phoenix, priced at $65,000 and having only 4,000 miles on the odometer.

Interestingly, the Mustang Mach-E constitutes over half of the electric vehicles sold on Hertz’s site. The premium variant of this vehicle typically starts at about $59,000.

Additionally, Hertz is reportedly offering rental customers enticing purchase options. A recent example shared on Reddit highlighted a model year 2023 Tesla Model 3 being offered for $17,913 to a renter, who noted the vehicle had logged less than 30,000 miles. This is a bargain compared to a new Model 3 in the U.S., which starts at $42,490.

Importance of This Move: Hertz has publicly stated its aim to decrease its electric vehicle fleet by 20,000 units through 2024, largely due to rising repair costs and depreciation issues. Following its first-quarter earnings call in April, then-COO Justin Keppy revealed that an additional 10,000 units would also be removed, bringing the total to 30,000.

“Upon completion, we anticipate that the remaining EV fleet will be better aligned with attractive demand for EVs with a priority on our rideshare business,” Keppy explained. Hertz also forecasted that by the end of 2024, only about 5% of its global fleet would consist of EVs outside of rideshare operations.

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