‘They are all Lyft/Uber rentals’: Should you buy used vehicles from Hertz?
Buying used cars from Hertz can be a roll of the dice. Rental cars often earn the repetition of being in bad condition, neglected, and disposal.
These cars are often rented out to ride share drivers, taxi services, and travelers needing a ride for a short duration. This short duration leads to lack of care, proper maintenance, and overall cleanliness of the vehicle.
This past January, Hertz announced that they will be selling 20,000 Tesla vehicles due to high maintenance expenses and lack of consumer demand.
This content creator highlights the potential benefits of purchasing a used Tesla Model 3 or Model Y from Hertz.
The original video was created by TikTok user @denniscw_ where he visits a Hertz Rental Car location to see what a used Model 3 listed at $14,0000. The creator reviews the car's exterior condition and goes over the possible tax write offs with electric vehicles.
Why is Hertz selling used Tesla cars?
Kelley Blue Book reported that Hertz faced issues with collision expenses. The expensive battery requires a replacement even in slight damage collisions. A new Tesla battery can range from $13,000-$20,000 to replace.
Potential benefits buying Hertz used cars
Buying a new Tesla Model 3 or Model Y can range from $40,000-$55,000. So buying a used Tesla for half the cost of a new Tesla is enticing. In addition to this, some Tesla’s qualify for a federal tax credit up to $4,000.
What vehicles qualify for this federal tax credit?
Tesla models from 2022 or earlier with a sale price under $25,000 qualify for the $4,000 tax credit according to the IRS. Annual income is also considered and an individual can only make up to $75,000 or $150,000 for married couples filing jointly.
What to consider under the hood
JD Power reported that the Tesla Model 3 and Model Y battery warranty is eight years or 100,000 miles. Replacing a Tesla battery can range from $13,000-20,000 including labor. The battery is expected to last 10-20 years however living in a hotter climate is known to reduce the lifespan of the battery quicker.
According to Kelly Blue Book, most Tesla models from Hertz have already collected over 60,000 miles. Once the Tesla reaches over 100,000 miles, the warranty expires leaving the driver stuck with the cost of replacing the battery. The electric vehicle batteries are at this high price due to the demand of natural minerals (nickel, lithium, cobalt) used to create them.
What condition are these used Tesla cars in?
As we know, rental cars aren’t usually taken care of properly. Countless drivers use these vehicles for short term rentals leaving more room for improper care. When you don’t own it, you take care of it differently.
In the TikTok clip, the content creator does a brief walkthrough of the exterior of the car. He mentions the replaced front and back bumpers generally meaning that the car was involved in some sort of collision. The creator did not look at the interior which can be a whole other story.
Overall, the content creator was impressed with the Tesla he saw at Hertz. He suggests this could be a great opportunity to buy a Tesla if you qualify for the tax credit and are looking to get a Tesla for a bargain.
The TikTok clip had more than 46,000 views and 55 comments.
“Insider at Hertz tells me to stay away,” one insisted.
“Nothing like a used Uber,” one joked.
“Do not buy a Hertz Tesla. Those things are used and abused badly,” another person commented.
@denniscw_ I Went To Buy a $15,000 Tesla Model 3 from HERTZ❗️Here’s What Happened ⚡️Get a $1,000 DISCOUNT - LINK IN BIO
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