Since January this year, Hertz has started selling used Tesla cars. Hertz has a global fleet of 20,000 electric vehicles, accounting for almost one-third of dealers’ electric vehicle inventories.
According to CNBC, Hertz ordered hundreds of thousands of Tesla, Polestar, and General Motors electric vehicles in 2021, a move seen as a strategic mistake as consumers have not completely abandoned gas-powered cars and the transition of the electric vehicle market has been slower than expected.
From 2020 to 2023, electric vehicle sales in the United States more than quadrupled, currently representing over 9% of total light vehicle sales, but the growth rate has slowed down, with sales of hybrid vehicles now standing out.
CNBC believes that the market will eventually transition to a fully electrified stage, partly because electric vehicle prices continue to drop, becoming increasingly comparable to gas-powered car prices, and also because battery technology advancements are increasing the driving range of electric vehicles, while charging infrastructure continues to expand.
The prices of used electric cars have also been significantly dropping. A study by the automotive research company iSeeCars in March this year found that the average price of used cars dropped by 3.6% compared to the previous year, while used electric car prices plummeted by 31.8%, with an average decrease of $14,418.
The price drop of used Teslas has been the largest among all brands, “mainly because Musk sharply reduced the prices of new Tesla cars,” said Karl Brauer, an executive analyst at iSeeCars.
In April this year, an iSeeCars report stated that all four models of used Teslas sold well, with three of them ranking among the top four. “The average price is $37,644, making used cars $20,000 cheaper than new electric vehicles.”
Automobile dealer Yossi Levi shared his views on purchasing new and used cars, stating that the best condition for a used electric car is typically within three years. “For consumers, the most cost-effective option is a used electric car.”
In conclusion, now may be a good time to purchase a used Tesla from Hertz. The advantages of buying from Hertz include their large inventory of electric vehicles and fixed prices for used cars without negotiation. A Hertz spokesperson stated, “Our electric vehicles are available in most major cities across the country, with an average price of around $25,000.”
Furthermore, all Hertz-certified vehicles undergo 115 checks and come with a warranty of 12 months or 12,000 miles. Hertz also offers warranty plans beyond the warranty period of the vehicle, as well as a 7-day or 250-mile buyback guarantee; they also provide trade-in and financing services. Moreover, some used electric vehicles are eligible for up to $4,000 in federal tax rebates, and some states offer tax credits or refunds.
A disadvantage of buying from Hertz is that although their used electric cars are relatively newer, these vehicles have higher leasing frequencies compared to other used cars, resulting in relatively higher mileage.
Consumers interested in purchasing an electric vehicle can access various information about Hertz and Tesla. Of course, test driving at a dealership is also necessary.
Additionally, the Tesla official website lists information on all new and used cars, all of which are manufacturer certified, inspected, and warranted. The website features more used cars than Hertz, dating back to 2018. Prices for the Model 3 range from $24,000 to $38,800.
People can also purchase used Teslas through several different online platforms. For example, CarMax lists 38 2021 Model 3 cars, mostly Long Range all-wheel-drive models, with prices ranging from $26,000 to $37,000 depending on mileage. Carvana also has 133 of the same model cars, priced between $26,000 and $38,000.