Elon Musk, CEO of Tesla, has recently dashed hopes of a mass-market Tesla model being sold at a price point of $25,000.
As Hertz CEO Steve Castelein discussed emerging trends in the automotive industry, it became clear that the competition for affordable electric vehicle rentals is set to intensify.
Hertz has started 2024 by claiming it aims to rid itself of approximately 20,000 used electric vehicles acquired through previous rentals at fixed, no-haggle prices before year-end. By the end of April, however, that number had risen to 30,000 electric vehicles, with average marketing costs hovering around $25,000.
With less than two months left to complete the 12-month period, costs are plummeting: On the company’s website, a quick scan of the gross sales page reveals that used Teslas can be found for under $20,000, Chevrolet Bolt EVs for less than $14,000, and Hyundai Kona electric SUVs for beneath $13,000?
For consumers willing to act swiftly, these used electric vehicles remain qualified for the Biden administration’s $4,000 tax credit for used EVs. The incoming Trump administration has recently announced plans to eliminate the federal tax incentive for electric vehicle (EV) purchases or leases, effective immediately.
Hertz-certified electric vehicles undergo a rigorous 115-point inspection and are backed by a comprehensive 12-month/12,000-mile limited powertrain warranty. The car rental company also offers extended warranty options for automobile safety plans.
Patrons have the right to return an automobile within seven days or 250 miles of their purchase, whichever occurs first.
In 2021, Hertz announced plans to revamp its fleet of rental cars by placing large orders for Tesla, Polestar, and General Motors models. As initial assessments indicated, maintenance costs for electric vehicles (EVs) are significantly lower than those for their gas-powered counterparts.
The car-rental firm was caught off guard when Tesla’s efforts to devalue new models had a ripple effect on the market, significantly reducing the value of used cars. As early as 2023, Hertz’s electric vehicle (EV) fleet was beset by a rapidly escalating rate of depreciation that they were ill-equipped to address, precipitating a frantic fire sale.
