Hertz to Sell 20,000 EVs and Replace with Gas Vehicles


Hertz has announced a plan to thin its fleet of electric vehicles by 20,000 units and replace them with gasoline-powered vehicles, citing lower than expected demand and higher repair costs. Bloomberg reports they have already began the process of selling their inventory.

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Overall EV demand has not met lofty sales expectations, as sales growth was only 1.3% higher from the third to fourth quarter of 2023. In an interview with CNBC, Hertz’s CEO Stephen Scherr said EV rentals are “not at the level of demand that we anticipated.” EVs have also been more expensive to repair than gasoline vehicles in Hertz’s fleet, and Sherr suggested that “efforts to wrestle it down proved to be more challenging.” CNBC also did a credible job explaining the how and why this strategy failed.

The video suggests that routine maintenance costs were lower for EVs, but repairing accident damage is twice that of a gasoline vehicle. Tesla vehicles are sometimes associated with uneven parts and service support, and a quick scan of Hertz Car Sales’ website shows that they are currently selling 672 Teslas, 35 Chevrolet Bolts, 3 Kia EV6s, one Nissan Leaf, one BMW i3 from 2018 (!), and none of their Polestar EVs.

What does this mean for you?

More Teslas will be dumped onto the market in the coming months, which may affect already depressed prices. Currently, Hertz’s cheapest Tesla is this black Model 3 with the standard battery. It is fairly priced at $20,125, roughly 57% less than its original asking price of $46,440 back in 2021. The cheapest 2021 Toyota Prius that Hertz is currently selling is $18,300 (with no photos, possibly in worse shape than the Tesla), which is only a 28% loss in value in a similar timeframe.

Click here to read the full article in Hagerty

Comments

  1. More Liberal Woke Agenda Failures….🤣

  2. Ronald Hamby says

    Thats where the rubber meets the road!

  3. During the heavy rains in December when streets were flooded, hybrid, and all ev cars broke down repeatedly. Conversations with insurance and rebuild companies state the cars are not economically or feasibly worth fixing.

    The economics of these makes it too costly for most to buy, and without government subsidy EV Cars are not worth the costs.

    So now the anti car groups are promoting automatic self driving autos that will have one heck of a time with internet interference.

    The list keeps growing. When does the juk end?

    Efficient, clean, and economical autos are on the streets now.

  4. George Feder says

    As long as idiots rule the roost we will be bombarded with terrible suggestions and laws

  5. CA_is_a_liberal_hellhole says

    I bet they took a bath on them. Someone with common sense should have stopped this before letting it happen.

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