Hertz Global Holdings
[Updated] Want To Own an EV?
Now is your chance
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11 Jan — Rental firm Hertz Global Holdings (HTZ.O) said on Thursday it would sell about 20,000 electric vehicles from its U.S. fleet due to higher expenses related to collision and damage and will opt for gas-powered vehicles.
Shares of the company, which operates vehicles from Tesla Inc (TSLA.O) and Swedish EV maker Polestar, among others, fell about 3% at market open.
Hertz had said it would order 100,000 Teslas by the end of 2022 and followed that with a decision to buy up to 65,000 units from Polestar over five years.
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Some used EVs are eligible for a federal tax credit of up to $4,000, which further sweetens the deal for buyers.
But to qualify for that credit, the EV must be a model from 2022 or earlier and can’t have a sale price of more than $25,000. There are also income limits for the credit. To qualify, individual buyers can only make up to $75,000, or twice that for married couples filing jointly.
In many cases, the cars Hertz is selling already have 50,000 to 60,000 miles on them, even in vehicles that are about a year old. That’s a lot of miles to pack on over a short period, Kelly Blue Book Senior Editor Sean Tucker noted.
Hertz is selling EVs in multiple makes and models, and there are more coming in 2024, the representative said. In the company’s “Rent2Buy program,” potential buyers can rent a vehicle for up to three days or take a free two-hour test drive. Rental charges are dropped when customers make a purchase, the spokesperson said.
What to consider when buying a used EV
When considering buying a used EV, mileage isn’t necessarily the most important factor. More important is the quality of the battery and the tires, which can wear out more quickly than in gas-powered cars.
“Almost 60% of an electric vehicle’s value is tied up in a battery, and batteries degrade with use,” Tucker said.
That’s why Tucker recommended having a vehicle you’re considering inspected by an independent mechanic or technician — one who understands EVs.
You’ll want to get the tires checked, too, because EVs weigh more than gas-powered cars and need special tires that can handle the wear. That’s because EV batteries are much heavier than a traditional gasoline-powered engine.
One of the reasons Hertz is selling off so many EVs is the high cost of repairs. For EVs, repairs after an accident can cost thousands of dollars more than their gas-powered counterparts — something else that potential buyers may want to consider.