Last Updated 2 years ago
If you are on the lookout for a new car and you always dreamed about owning an electric vehicle, this can be your opportunity to get one at a very affordable price
We all know many buyers would like to drive an electric car but the available options in the market are quite expensive. This can be discouraging and make people opt for a gas-engine vehicle.
Fortunately, the American car rental company Hertz recently decided to sell 20,000 electric vehicles from its fleet, which can represent an opportunity to find your next EV.
In this article, we will cover why Hertz is selling EVs and how you can benefit from it.
Hertz Is Selling EVs To Buy Gasoline Cars
After declaring bankruptcy in 2020 due to the impact of COVID-19, Hertz announced the electrification of its fleet in 2021 with the purchase of 100,000 cars from Tesla. And in 2022, it made a similar deal with Polestar buying 65,000 units.
Nonetheless, as reported by Reuters, this year Hertz is selling up to 20,000 units of its electric vehicle fleet due to the high cost that these units represent for their business,
Among the main reasons are the cost of collisions and potential damage to electric vehicles.
Auto insurance companies tend to price coverage of automobiles based on the complexity of the repairs. Most insurance firms declare an electric car totaled after a car accident even if the car has little mileage. They argue that the batteries can not be repaired or that it is challenging to diagnose the proper functionality of a damaged battery. Particularly on Tesla models, due to the technology in these vehicles, repairs can be pricey.
After reports of customers involved in car accidents, Hertz decided to limit the speed of the electric vehicles, as a measure to reduce accidents in these units.
Another reason for Hertz’s decision was the depreciation that electric cars have experienced in the last year.
Let’s explain. Tesla has cut prices aggressively in its vehicles to compete with other automakers like BYD forcing American companies like GM or Ford to also cut their prices on new models. This has caused used electric cars to lose value rapidly as well representing losses in depreciation for the owners.
Almost 80% of Hertz’s fleet of electric cars are Teslas. This has a mayor impact on the company since it is active in the use car market. The car rental company is expecting around $245 million in expenses related to depreciation.
While the prices of EVs keep declining, Hertz will take big losses by selling some of its electric cars in the used car market and will look to invest in gas-engine cars.
How Americans Buyers Can Benefit From This?
Hertz has currently about 650 used electric cars listed on its website. There are shown diverse EV models such as:
- BMW i3
- Chevrolet Bolt EUV
- Kia EV6
- Nissan Leaf
- Tesla (Model 3 and Model Y)
If you want to benefit from this, you can find a Tesla Model 3 standard range version for as low as $20,700 which is almost half the price you can find on Tesla’s website.
The Tesla Model Y Long Range is listed for as low as $33,600 which is approximately 30% cheaper than a brand new Model Y.
The Take
As more and more Teslas enter the market of used cars, the cost of EVs will keep being pushed down. This can represent a loss for companies using cars to provide a service due to the depreciation of the vehicles. However, this situation will make electric vehicles more and more accessible to a wider segment of drivers.
This is such a great opportunity if you are looking to buy an electric car and keep it for some years. Purchasing an EV in 2024 can also qualify for a tax credit of 30% of the sales price up to a maximum of $4,000 as the IRS updated the requirement to qualify for the tax credit including used electric vehicles.
Take into account that the sales price must be less than $25,000 and the year model has to be 2 years earlier than the calendar year, meaning that only models years of 2022 or older will qualify.
To check all the details about the requirements to qualify for the tax credit visit the IRS website.