Hertz To Sell 20,000 EV’s Mostly Tesla / Replace With ICE Vehicles

[Otto klub]

50k to 90k miles on them. They have made their money off them. They unload ICE like this also.
Anybody ever rent a car that had a 100k miles on it?

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[AhardFSU]

I think new cars are expensive to repair regardless of whether they're EVs or not. It's all the integrated radars, cameras and sensors. Look at all the threads here about how much a simple small damage to the MME cost to repair. The lights alone are $5000. I had my 2 side mirrors replaced under warranty, and the dealer charged Ford 3k.

It's not isolated to Tesla.

I'd suggest folks read this article from Motortrend https://www.motortrend.com/news/hertz-ev-fleet-sale-tesla-report/ bc apparently, it does seem to be a Tesla thing regarding repair costs. Specifically, the writer mentions a comment the Hertz CFO made on a earning call about the Tesla repair cost in comparison to other EVs, specifically GM.

Hertz. has to do what is appropriate for it's business. But it doesn't help that a number of EV manufacturers are looking at trying replicate Tesla by moving to gigacasting. Yes it lowers costs for the manufacturer, but if the car is involved in a collision, the repair costs are really expensive and the insurance companies may just total it. None of that is good for purchasers bc it raises the cost of insurance at some point.

 

[voxel]

I'd suggest folks read this article from Motortrend https://www.motortrend.com/news/hertz-ev-fleet-sale-tesla-report/ bc apparently, it does seem to be a Tesla thing regarding repair costs. Specifically, the writer mentions a comment the Hertz CFO made on a earning call about the Tesla repair cost in comparison to other EVs, specifically GM.

Hertz. has to do what is appropriate for it's business. But it doesn't help that a number of EV manufacturers are looking at trying replicate Tesla by moving to gigacasting. Yes it lowers costs for the manufacturer, but if the car is involved in a collision, the repair costs are really expensive and the insurance companies may just total it. None of that is good for purchasers bc it raises the cost of insurance at some point.

Which Toyota is also doing.

https://asia.nikkei.com/Business/Au...ototype-cuts-production-from-hours-to-minutes

 

[kennethjk]

Fault lies with Hertz not providing adequate information to renters also.

I was charging my MME at an EA station and up comes a Tesla, he couldn’t get the EA plug into the Tesla. I explained that he might have an adapter in the car and if not he couldn’t use the chargers at EA. He had no clue. He said he wouldn’t bother to look for the adapter and would just go find a Tesla station And off he went.

average citizens who never drove an EV should not be taking an EV on a vacation, especially if driving long distances.

i rented a MB and it took me a while to find information in their UI. Not for everyone.

 

[RickMachE]

I was charging my MME at an EA station and up comes a Tesla, he couldn’t get the EA plug into the Tesla. I explained that he might have an adapter in the car and if not he couldn’t use the chargers at EA. He had no clue. He said he wouldn’t bother to look for the adapter and would just go find a Tesla station And off he went.

average citizens who never drove and EV should not be taking an EV on a vacation, especially if driving long distances.

i rented a MB and it took me a while to find information in their UI. Not for everyone.

Ran into multiple renters on our last trip. Bolt rented on a business trip, for a work assignment. Seemed to be a laborer. Said they told him nothing. He tried to take it back to a local location, they refused to take it. He had no idea.

Ran into another Bolt at a charger, guy and his girlfriend. They plugged into a 150 and got it going, then she saw HYPER FAST on the 350 and pointed to it. He started unplugging on the 150 until I explained he would get a max of around 46 and it didn't matter.

And others, similar story.

 

[zvez]

I looked at model Ys on the Hertz site... new ones are ~$50K, less $7.5K with zero miles. (net ~ $44K)

Used ones with 50-80K miles are $35K

Doesn't look like much of a fire sale to me.

dunno , used model 3s for around $21k as posted above seems pretty cheap for 21 model.

 

[Ghost Ryder]

I don't see a problem with gigacasting. If the impact was strong enough to damage the gigacasted part, then that means the frame was damage and likely the battery also. The car would be totaled anyways. It's all the senors and cameras that are on EVs and modern cars.

 

[spicy_taco]

Not really surprised that they're giving up on EVs. Over the last year Hertz has been pushing EVs whenever we were in a need of a rental. When we travel, it's never convenient to charge, so we never took them up on the otherwise attractive offers. The last thing I need on vacation is to have to worry about finding chargers.

 

[RickMachE]

Note in the story where they pointed out that Hertz was bankrupt when they did this (2nd bankruptcy), and it made great headlines. Some numbnuts Harvard private equity idiot probably suggested it.

 

[Ghost Ryder]

dunno , used model 3s for around $21k as posted above seems pretty cheap for 21 model.

Those are standard-range M3s with 80k miles and have been in a rental fleet.
New ones start at 39k. After fed rebate (can still get from lease) and state rebates, you can get it for 30k. That's a much better deal

 

[Ghost Ryder]

All things considered above, anyone think the recalls regarding the autopilot may also be a reason why they are trying to offload inventory?

not at all. nothing was wrong with autopilot. The complaint was that tesla did not bug the driver enough. Fixed with OTA update.

 

[Vulnox]

While FSD and AutoPilot are pretty bad in their current camera based forms, the article was clear that they were offloading EVs (not just Tesla it didn't seem, but I think a bulk will be simply from how many they purchased initially) due to repair costs.

Gigacasting is absolutely adding cost and complexity into some accidents, and it's as usual more because Tesla put it out there without having a reliable support structure in place. They are, now, working on ways to improve training on repairing gigacast vehicles. I don't think there is in inherent problem with gigacast and repairs, any more than there was a problem with F-150s going to Aluminum.

The difference is Ford spent a LOT of time and money getting body shops trained on aluminum repair and ensuring dealership body shops had equipment before customers bought them. It still wasn't perfect, but they at least had resources and training available.

Tesla just does things to get sales and the after sales support is just, "eh, they will figure it out". So even if a gigacast vehicle can be repaired, the insurance company appraiser may not know where to send it or what is repairable, so it gets scrapped entirely, and costs go up.

No way to know the repairs that pushed Hertz down this road as I doubt they make individual repairs public in any way. But seeing the amounts described in "Wham Bam Teslacam" videos for some pretty small seeming repairs to Teslas, it's no wonder.

All that said, others mentioned that vehicle repairs in general are way up and it is pretty ridiculous. I have seen some mention that just a broken taillight on the current gen F-150 is close to $2000 to replace depending on the features implemented.

 

[mccdeuce]

I rented a Tesla 3 from hertz on my last trip. Was phenomenal. My favorite part was to return at 10% and pay $25 fee for recharge. Would have cost me more than that and my time to supercharge. Way cheaper than gas.

 

[Blue highway]

I don't think roadtripping with Teslas is the issue (very easy).

It's how delicate Teslas are in general. Small dings can be expensive to repair. Modern cars are all this way with sensors and wiring everywhere. Hertz wants vehicles you can beat on like Corollas and Sentras.

dunno , used model 3s for around $21k as posted above seems pretty cheap for 21 model.

72K miles... in a rental fleet... no bargain.

I drive a few dozen rentals a year... a high mileage rental car (>50k miles) may be maintained mechanically, but the clear coat is all scratched up after going through many hundreds of car washes, Always a few door dings, usually corner scuffs from hitting something and the interior is tired, lots of wear on any touch points. Inevitably someone has smoked in them.

a brand new model 3 rwd is $31.5K ($39K-7.5K)

so you can save $10k... to me no bargain.

 

[4sallypat]

......
a brand new model 3 rwd is $31.5K ($39K-7.5K)

so you can save $10k... to me no bargain.

I thought the M3 RWD no longer has any tax credit eligibility as of 2024 ?

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