Hertz’s failed bet on EVs is turning out to be a great thing for the savvy used-car buyer.
Thanks to an ill-fated plan that included buying a fleet of 100,000 Teslas right after emerging from bankruptcy, car buyers can now find various EVs below $30,0000 through the rental car company’s Hertz Car Sales division, including Teslas for as low as $21,000.
The fire sale comes after Hertz’s massive bet on EVs fell flat thanks to weakening demand for electric vehicles in the U.S. In the first quarter, just under 269,000 EVs were sold in the U.S., an increase of 2.6% year over year, according to data analyzed by Kelley Blue Book. But last year during the same period, sales were up 46.4% year over year. First-quarter EV sales this year also fell 15.2% compared to the fourth quarter of 2023.
Tesla CEO Elon Musk’s several price cuts over the past year have also dented the value of Hertz’s Teslas. The rental car company said in January it would look to sell 20,000 vehicles, or a third of its EV fleet, by the end of the year. It upped that number to 30,000 after reporting lackluster first-quarter results and a $195 million hit on the value of its electric vehicles. The company also warned that its agreement to buy 175,000 electric cars from General Motors and 65,000 from Polestar may take longer than expected.
Hertz did not immediately respond to Fortune’s request for comment.
Yet Hertz’s misfortune is a dream for used-car buyers looking for a good deal. On the company’s website, potential buyers can find Teslas ranging in price from $21,000 to $36,000, the majority of which are models from 2022 and 2023. Hertz is also selling several 2023 Chevy Bolt SUVs for about $16,000. Prices for the vehicles vary in part due to the miles they have accrued. Some of the vehicles have higher-than-average mile counts for their age because they’ve been used as rental cars.
The long race to market a new affordable EV is slowly becoming a reality in the U.S. due to fierce competition between Tesla, Hyundai-Kia, and General Motors, according to data from Bloomberg Green. Each of these companies now offer long range electric vehicles that can travel for 300 miles without stopping to charge for less than the average price of a new car in the U.S. Still, the cheapest model, the 2024 Hyundai Ioniq 6, costs $47,000. On the horizon are a soon-to-come $25,000 electric Jeep that Stellantis announced last month and a new Chevy Bolt EV that General Motors’ North American President said would be “the most affordable vehicle on the market by 2025.”
Experts say that electric car dominance is inevitable, but for now, gas-powered cars and hybrid electric cars that don’t need to be plugged in are on the rise. But when it comes to used cars, Hertz’s major discounts on EVs will make it hard for potential buyers to stay away.
