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Car Rental Giant, Hertz Replaces 20,000 EVs With Petrol Powered Cars
Car rental company Hertz is replacing 20,000 electric cars in the US with models with a combustion engine. According to Hertz, the early retirement of EVs is mainly due to high repair costs after damage.
The rise of the EV once seemed to have no end, but things have changed recently. Governments and buyers are more likely to have doubts than two years ago, although more and more EVs are being sold and the Tesla Model Y is very popular worldwide. Of course, the EV has also made considerable progress in the rental sector. In 2021, it was reported that the car rental company Hertz ordered 100,000 Tesla Model 3s in one fell swoop.
Later, that order was supplemented with Model Ys, but Hertz is now entering the EV competition with less enthusiasm. The company is selling 20,000 EVs in the US to fill the gap in the fleet with gasoline-powered models. According to Reuters, Hertz explains that it proves difficult and expensive to repair EVs after damage, which is indeed often the case in the case of Teslas.
To limit the number of damages, the power and torque of certain EVs would already have been limited, and the cars would only be offered to experienced drivers on Hertz’s online booking platform. Hertz is not saying goodbye to EVs completely but says it will first focus on the profitability of the existing fleet before considering expansion again. Car rental company Sixt previously announced that it would be phasing out Teslas, also citing damage repair costs as a reason.
Hertz’s EVs are available for purchase through the company’s own sales platform. Hertz has no desire to peddle its electric cars for long, so American consumers can undoubtedly come home with a good deal.
“While 20,000 cars isn’t a large number in the total used vehicle market, it does mean Hertz will be taking a major loss on each of these sales while further contributing to the trend of falling used EV values.
Hertz is selling some Tesla Model 3 for as low as about $20,000, nearly half the purchase price for the cheapest variant of the compact sedan, its used car website, opens a new tab.
It lists more than 700 EVs on sale, including BMW’s i3, Chevrolet’s Bolt, and Tesla’s Model 3 and Model Y SUVs.