Hertz took a risk and suffered defeat when it staked its major EV wager on Tesla some years back. It presented an opportunity for the car rental company to disrupt the sector, but instead, the company acquired 30,000 Teslas, only to be deterred by depreciation and costly repairs and is now seeking to offload them. Despite appearing as excellent bargains for used cars, it surfaced that high-mileage EVs once used as rentals are a nightmare to upkeep as New York Magazine revealed.
Hertz aspired to have 20 percent of its rental fleet consisting of EVs, and it was planning to kick off with a colossal Tesla agreement encompassing over 30,000 vehicles. The unanticipated costly maintenance spooked the company enough to start liquidating its inventory. This resulted in unbelievable pre-owned EV acquisitions, particularly when factoring in the $4,000 used EV tax credit. Individuals rushed to Hertz dealerships to purchase them. A dealer at a Hertz outlet in Smithtown, New York disclosed to New York Magazine that they were vending as many as 30 Teslas weekly at one juncture. A lull ensued when purchasers eventually comprehended the predicament they had put themselves in.
Consider the case of Bijay Pandey from Irving, Texas. He procured a 2022 Model 3 Long Range for a mere $25,000 for his spouse earlier this year. Issues began surfacing shortly after the purchase.
Upon obtaining a provisional title, he noticed the vehicle wasn’t reading voltage accurately. Before long, a body shop discovered a hole the size of a quarter in the undercarriage that had eluded his notice, leading to the revelation of deeper internal concerns. A Tesla technician texted him, stating, “The high-voltage battery pack is ruined and could pose significant safety risks.”
The damage in the battery pack turned out to be classified as “exterior damage,” resulting in a repair invoice amounting to more than $13,000. Regrettably, this sum wasn’t covered by the warranty. Surprisingly, Hertz informed Pandey they would allow him to exchange the vehicle for another. Yet, this entailed a two-month wait while Pandey continued to meet his $500 vehicle installment. Pandey noted that this is when it dawned on him why Hertz was keen on disposing of these EVs. “I grasped the reason why they sought to offload those Teslas. If any problem arises with a Tesla, the bill racks up too high.”
Pandey isn’t alone in this realization. Platforms like Reddit and Tesla forums are replete with individuals inquiring about the wisdom of acquiring a used Tesla from Hertz. A considerable number of individuals are advising against it. Many seem to overlook the fact that these were previously utilized as rentals, and such vehicles are often subjected to severe wear and tear. Some suggested that opting for a used Model 3 directly from Tesla would be a more logical choice than from Hertz.
The battery mistreatment these vehicles endured renders a purchase from Hertz a dealbreaker. My previous experience with acquiring a used rental does come into play. While most rental cars are not heavily mistreated, many of these were used for Uber services, involving frequent rapid recharging and full utilization of the available range. The extent of mistreatment places the burden on the unfortunate individual who buys one. I would opt for a used Tesla directly from Tesla, and that’s all.
We attempted to obtain a comment from Hertz, but the company remains tight-lipped regarding the pre-owned Teslas. It appears that the company simply desires to divest itself of these vehicles and be done with it. In a statement to New York, a spokeswoman mentioned that the company anticipates completing the sale of the remaining 20,000 Teslas by year-end. If you are contemplating acquiring one of these units and are enticed by the discounted pricing, all I can say is, best of luck.
