2024-06-08 13:46:47 -0700

Hertz commences Tesla fire sale at unbelievable price of $25,000


If you want to pick up a Tesla on the cheap, Hertz may have a deal for you. The car rental company is having a fire sale that brings down Tesla EVs and other brands to about $25,000.

Hertz may have got its fingers burnt while experimenting with EVs, but it is turning out to be to the advantage of EV lovers. The company is offloading thousands more of its massive stockpile of EVs, pushing prices down to unbelievable levels.

The company broke the internet when it placed an order for 100,000 Tesla cars in 2021. It was part of its plan to electrify its huge rental car fleet. The deal, the largest ever for electric vehicles, sent Tesla's market value north of $1 trillion, a first for an automaker. It also helped Hertz complete a turn-around from the brink of bankruptcy.

Customers started renting a Tesla from Hertz in the US and Europe in November as it expected the whole order to be delivered the following year.

Months later, Hertz grabbed the headlines again with another massive EV order when it agreed to purchase up to 65,000 Polestar EVs over five years. Hertz also announced it would buy up to 175,000 electric cars from GM.

However, by the end of 2023, the company had realized the Hertz-Tesla partnership was not the best, and its electrification strategy needed a reboot. Many of the Hertz Teslas, according to then-CEO Stephen Scherr, were being used by Uber drivers, leading to higher-than-normal repair costs and depreciation. By then, Hertz had expanded its EV fleet to about 50,000, including 35,000 Teslas.

While Hertz has, in exchange for Polestar pausing supply for the rest of 2024, agreed to hold on to the Polestars for longer and not sell them for significantly lower than their original purchase price, it appears there are no such restrictions on the Teslas.

The result of Hertz's decision to offload its EVs is that some of the cars can now be had for a song for a "no-haggle" price of around $25,000.

For potential buyers concerned about the health of the EVs, the company says each of the Hertz electric car rentals passes through a 115-point inspection system. They will be sold with a powertrain warranty of whichever comes first between a year and 12,000 miles. For additional peace of mind, customers can buy enhanced protection plans extending the standard warranty. Polestar will also take the car back if a customer changes their mind on their purchase within seven days or 250 miles.

Interestingly, some of these Hertz EVs will qualify for up to $4,000 of the federal EV tax credits, bringing the effective buying price down further. Buyers may also take advantage of additional incentives from states, counties, and municipalities.

If you are still worried about the state of these EVs, especially their batteries, a Tesla Model S is still going strong on its original battery and electric motors after 430,000 miles, almost the distance to travel to the moon and back. The car has probably seen more usage than the Hertz electric cars as it has been working as an airport taxi for years.

AutoTrader reported about the Model S 90D that was purchased in 2016. The owner is Paul Curzon, who operates an executive transport company. In its eight years of extensive use, the car has lost only about 65 miles of driving range to battery degradation, which is not unreasonable given that the car had been charged with the DC Superchargers to 100% almost every day.

Curzon is not likely to let the car go anytime soon as the Model S has a lifetime of free Supercharging, saving him up to $12,700 a year in charging fees. He has also been saving on maintenance fees, “This car has never actually physically had a service. It’s still on the original fluids. It has to be MOTed every six months, and anything that looks like it’s wearing out or about to go, you replace. So it’s preventative maintenance on that form.”

If you are going to be using your Tesla for a long time, it makes sense to make it exciting to use. Many Tesla owners rave about the Spectre fibre dashboard replacement offered by Fusion Motorsports. This product stands out in a sea of Tesla accessories due to its stylishness and long-lasting features. The hand-built dashboard is made from premium materials and is a complete replacement instead of a mere cover.

Header image courtesy of Hertz