Rental car giant Hertz is dramatically expanding its electric vehicle selloff program, with used Tesla Model 3s now available for under $20,000 as the company grapples with mounting EV depreciation costs. Hertz’s heavy investment in Tesla EVs has been a disaster causing massive losses and the loss of its CEO.
Inside EVs reports that Hertz’s ambitious electric vehicle program has hit another significant roadblock, with the company reporting an 89 percent increase in EV depreciation costs, amounting to $537 per vehicle per month. The rental car company has committed to selling 30,000 electric vehicles from its fleet by the end of 2024, marking a stark reversal from its earlier EV adoption strategy.
The company’s current predicament stems from its bold 2021 initiative to “go green,” which included plans to purchase 100,000 Tesla Model 3s. While this initial vision appeared promising, with benefits including reduced maintenance costs and strong customer interest, the strategy has since encountered numerous challenges that have forced a significant course correction.
A primary factor in Hertz’s EV difficulties has been Tesla’s multiple price reductions, which have severely impacted the residual value of the rental fleet. These price cuts have created a ripple effect throughout the used EV market, leading to accelerated depreciation of Hertz’s electric vehicle assets. The company is now offering used Tesla Model 3s at prices below $20,000, with additional savings possible through the $4,000 federal tax credit available for used EVs.
Keep in mind, this isn’t a Tesla problem. This is Hertz drinking from the EV koolaid pitcher.
This is absolutely a Tesla problem. Teslas are overpriced and have significantly more issues compared to affordable EVs.
Then don’t buy one 4:14
Teslas are overpriced and have significantly more issues compared to affordable EVs.
Lets see your proof and or data to back up your statement. November 22, 2024 at 4:14 pm
Hertz went out car shopping and made the decision to purchase Teslas.
When a car / truck rental companies need vehicles, they send out requests for bids to automobile manufactures. They in turn get the bids, and make a decision on what to purchase.
No body held a weapon to their collective heads and forced them to buy the vehicles.
Tesla Model 3 price
Model and version Base price Mileage range
Model 3 Rear-Wheel Drive (RWD) $38,990
Model 3 Long Range All-Wheel Drive (AWD) $47,490
Model 3 Performance AWD $54,990
The cheapest Tesla model currently available is the Tesla Model 3 Standard Range Plus, with a starting price of around $39990 (before any incentives or discounts).
Why are Teslas so expensive?
But they remain in high demand. One reason why the price is so high is that demand is strong. Expanding production capacity and building new factories may help moderate prices. The other main reason why Tesla’s prices are high is the high cost of the electric battery packs that power these vehicles.
The average price of a new electric vehicle (EV) in the United States is around $56,000, which is higher than the average price of a new gas-powered car. However, the price gap is expected to narrow in the future as more affordable options become available.