Hertz raised some eyebrows recently after customers on Reddit shared that they were receiving offers to buy their rented Tesla vehicles for cheap. While the Teslas offered for sale are certainly less than the sticker price, this isn’t a new thing. Plus, as the saying goes, bargains can end up costing you more in the long run
“Enjoying your rental? Take it home…” That’s the message one Hertz customer reported receiving from the company about their 2023 Tesla Model 3 rental on Reddit recently. With a price tag of $17,900—or 50% less than the price of a new base model—and roughly 30,000 miles, the Hertz offer sparked a predictable reaction.
“That’s a pretty cheap car … what’s wrong with it hahaha,” one Redditer asked.
For comparison’s sake, a new Tesla Model 3 starts at $41,630, according to Edmunds.
Not anything new. While the Reddit post may come as a surprise to some, Hertz has been selling the Teslas, and other electric vehicles, in its fleet for a while now. There are several posts on Reddit in recent months about the Teslas being sold by Hertz.
Responding to media coverage about the cheap Teslas, Hertz said its emails to customers about the cars available for purchase were “expanding customer choice.” In another statement, the company pointed out that many customers don’t even know it sells cars (guilty).
Why is Hertz selling off its Tesla fleet? In January 2024, the company announced it would sell 20,000 EVs, about one third of its global fleet, in a move its CEO Stephen Scherr called an “agile” adjustment. Basically, they weren't popular among customers. As The Verge notes, Tesla cars are also costly to repair.
“The reality of EVs and Tesla’s being the best-selling car will, at some point, render them the best rental car,” Scherr said on Squawk on the Street at the time. “It’s not yet, so we may have been ahead of ourselves in the context of how quickly that will happen, but that will happen.”
The majority of the cars Hertz put up for sale were Teslas. Notably, the company said it would use some of the proceeds from the sale to buy more internal combustion engine cars.
When it comes to bargains, exercise caution. Judging by its website, it looks like Hertz hasn’t had much trouble selling off its Teslas and other EVs. At the time of publication, there are currently only 10 available for sale with prices ranging from $17,000 to $29,000. To be fair, some of the cars have more than 120,000 in mileage.
While these deals are eye-catching, it’s important to be cautious. As Electrek points out, some people don’t take very good care of rental cars. You may also have to replace parts like the rims or tires, so that adds to your total. When it comes to Teslas, it’s also wise to buy something with less than 100,000 miles so it’ll be covered by the company’s battery warranty.
This doesn’t mean you shouldn’t buy a used Tesla from Hertz or any other company. It’s just important to do your homework.
Images | Charlie Deets | Jonas Leupe
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