Rental firm Hertz Global Holdings (HTZ.O) said on Thursday it would sell about 20,000 electric vehicles, including Teslas, from its U.S. fleet due to higher expenses related to collision and damage, and will opt for gas-powered vehicles.
Shares of the company, which also operates vehicles from Swedish EV maker Polestar among others, fell about 4%. Tesla’s (TSLA.O) stock was down about 3%.
Hertz also expects to book an about $245 million charge related to depreciation expenses from the proposed EV sale in the fourth quarter of 2023.
Hertz’s decision underscores the bumpy road EVs have hit as the growth rate on sales of those vehicles has slowed, causing carmakers like General Motors (GM.N) and Ford (F.N) to scale back production plans of those vehicles.
Morgan Stanley analyst Adam Jonas in a note said the car rental firm’s move was a warning across the EV space and it was another sign that EV expectations need to be “reset downward across the market.”
“While consumers enjoy the driving experience and fuel savings (per mile) of an EV, there are other ‘hidden’ costs to EV ownership,” Jonas added.
Hertz is selling them used starting around $17k (yesterday) and now up to ~$22k:
https://www.hertzcarsales.com/rent2buy-inventory/index.htm?geoRadius=0&geoZip=94538&make=Tesla&sortBy=internetPrice
If you’re in the US and meet the income requirements, you should be able to apply the Used Clean Vehicle Credit to drop the price by $4k.
$18k for a used vehicle in 2024 isn’t doing too bad.
Ring me when I can buy it with $3k-5k in cash like I’ve been doing most of my damn life or I will continue to not give one fucking shit.
$18k, what a fucking joke and a half, for a vehicle that’s way more costly to repair.
My fiat 500e is worth ~$5k.
Simple car, minimal extra features when compared with new. And as of this year a decade old.
I Love it, never had issues with it, and since I bought it 5 years ago has saved me it’s current value in not buying gas alone, not including oil changes, brakes, etc.
I’m not saying ev is for everyone right now and I agree the current ev available new don’t seem to be likely to be good used cars. Just that this one seems to be one that doesn’t fit a lot of your complaints.
This one is finally going to be available in the US in 2024, but I have a deep dread that import costs are going to make it not so cheap of a used vehicle in the US.
Europe and China have blown the US out of the water on affordable EVs and I guess maybe I should make clear I’m speaking very, very Amerocentrically on this issue.
There’s literally a number of affordable Chinese EVs that don’t have a bunch of extra features, but the cost of getting one to the US and making it street legal is basically more than a conventional EV.
I think you misunderstood me. I have the gen1 500e. Not the facelift model. Mine is a 2013 model year.
They were sold in California and Washington almost exclusively.
Wild, I was unaware of that. Looking at the Seattle craigslist, it looks like the Seattle area has a handful of used ones in that price range, 2015 models.
That’s simply not in line with reality. Used gas cars aren’t even selling for that low.
Funny because my local craigslist has fucking plenty of 2000-2010 vehicles in that price range. Plenty of private sellers still go in that range.
Sure, if you want a vehicle with 250k miles or known transmission issues (i.e. Ford Fiesta).
The 1970’s called - they want the idea that cars are worn out at 250k miles back.
Modern cars with 250k miles are just broken in. They are not in perfect condition anymore, but with minimal maintenance most still have a lot of life left.
My Pontiac with less than 110k miles on it (only just broke 100k last year) begs to differ but you do you.
That’s just buying a used car. No new cars have ever been in the 3k-5k range…my car from like 10 years ago was in the 18k range.
What?!? I’ve never paid $18k for a car.
Because of various effects related to the pandemic, the used car market drove the average price of a used car to insane prices. I’m sure you can find cars for cheaper, but:
KBB claims $26510 (Feb 2023)
CR claims around $27k (Aug 2023)
And if this data source from Statista is to be believed, $18k would be below average in 2016.
the used car market is still so borked that I can’t afford one at all.
Absolutely and it fucking sucks since it costs so much more to even finance a car.
I’m about as interested in servicing a Tesla as Hertz is, especially considering the exploding suspension parts.
The parts availability would be the biggest pain in the ass. I personally would avoid any Model 3 more than a couple years old because of various manufacturing things they’ve run into.