If you’re considering buying an electric car, Hertz’s latest move may be just the thing for you. Car rental giant Hertz decided to put the rental electric vehicles in its fleet up for sale as a result of a serious loss in value. While they initially planned to sell 20 thousand vehicles, this number increased to 30 thousand with the additional loss of value.
The loss of value in Hertz’s rental electric vehicles caused a loss to the company
In the post-pandemic period, Hertz, which took a big step by purchasing 100 thousand Teslas in order to make an innovation in the car rental industry, said that electric vehicles are as popular as expected. He learned the hard way that it was not a sound investment.
The high maintenance costs of electric vehicles and their faster-than-expected depreciation have caused the company to sell these vehicles faster than expected. early and at a loss This made him decide to sell. They wanted to apply the business model they had applied and succeeded in internal combustion engine vehicles to electric vehicles as well.
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That is, generating income by selling vehicles that reach a certain mileage. However, this model for electric vehicles did not work as they hoped. The problems experienced with the charging infrastructure of electric vehicles and the dissatisfaction of consumers in this area also increased Hertz’s difficulties.
All these factors affect the company’s forecast in the first quarter of 2023. 392 million dollars of damage and their income is only 2 percent Although it showed an increase, it caused financial difficulties. This has pushed Hertz to sell more rental electric vehicles. Now, the sale of 30 thousand electric vehicles has revealed the dire consequences of the company’s experiences in this field.
These sales are seen as both a loss for Hertz and a great opportunity for those looking for used electric vehicles. This situation was an example of how rapidly the dynamics in the electric vehicle market can change and how big the consequences of loss of value will be. Why do you think electric vehicles are losing value so quickly? You can write your opinions in the comments section below.