Hertz Sells Its Tesla Fleet at Rock-Bottom Prices, but Is It a Good Deal?

With the wider adoption of electric vehicles in the US, the used EV market is also consolidating. Despite urban legends claiming that electric cars don't last long because the battery dies young, buying used can be an opportunity to enter the EV fray without spending a lot of money. Since EVs are still a new thing, most that are on the market are still well within their manufacturer warranty for batteries, so the risk is relatively low.

Sure, there are risks to take into account, as demonstrated by some 2012-2015 Model S battery failures. However, battery tech and build quality have improved tremendously in the past ten years, and electric vehicles have proven rock solid. This is why seeing Hertz selling many 2021-2022 Tesla Model 3 and Model Y EVs for a bargain on its website might make some hearts beat faster.

At the time of writing, there are 662 Tesla EVs listed on Hertz's car sales page, with prices starting at $20,125 in the case of several 2021 Tesla Model 3 SR+. It appears that the best deals have already disappeared because Hertz had cars listed for as low as $17,700 a couple of days before. The mileage of the cheapest cars in inventory hovers around 80-90,000 miles, which is still below the mileage limit for the battery warranty of a Tesla Model 3 SR+ (8 years/100,000 miles).

Many people who noticed the sales were puzzled, and some even claimed that Hertz was purging Tesla EVs out of its inventories. For most people, selling that many cars that are less than three years old doesn't make much sense. From the business perspective, it makes a lot of sense, though. By selling the cars while they are still under warranty, the company maximizes the profit.

This is part of a normal process of fleet renewal, and they seem like a sell-off only because Hertz's fleet is huge. Last time I checked, Hertz had about 50,000 Teslas in its fleet, and many were bought following a surprise deal announced in 2021. When Hertz announced it, not even Elon Musk was aware that Hertz was willing to buy 100,000 Teslas.

Having cleared the reason why these cars are on sale now, the question remains whether they are a good buy or not. Some people hoped they could get an even sweeter deal by applying the $4,000 tax credit offered for used EVs under $25,000. However, this is not the case, as Hertz clarified in a message that it cannot provide the tax credit because it's not participating in the program. At full $20,000, are these cars still a great deal?

Keeping in mind that these are relatively high mileage rental vehicles, a thorough inspection before buying them is an absolute must. Hertz acknowledges this and offers them through its Rent2Buy program. This allows you to rent the car you want for three days before you decide if it's worth it or not. You get a special rate during this trial period, which is lowered to zero if you choose to buy the car at the end of the period. This way, you can get the vehicle checked at a third-party garage of your choice or do any test you deem necessary before buying the car.

For more peace of mind, Hertz is also offering a 12-month/12,000-mile limited powertrain warranty and one year of roadside assistance, including towing, rental car, and travel breakdown assistance. If this is enough to alleviate your concerns, it's entirely up to you. What is important is that things are moving, and all these rental EVs entering the market mean more choices and better prices for everyone looking for a used electric car.