Is buying a used Tesla from Hertz a good deal?

Is buying a used Tesla from Hertz a good deal?

Looking for a cheaper way into the Tesla market? One rental-car company may have just granted your wish.

Hertz Global Holdings Inc. HTZ, -4.28% said Thursday it is selling about 20,000 electric vehicles from its fleet, including many Tesla Model S sedans. The move is aimed at better balancing supply and expected demand for EVs, allowing Hertz to scrap a disproportionate number of lower-margin rentals and reduce damage expenses associated with EVs.

It also marks a reversal for Hertz, which in 2021 bet on electric cars with a 100,000-vehicle order from Tesla TSLA, -2.87%. At the time, the deal propelled Tesla’s valuation above $1 trillion.

But is scooping up one of those EVs from Hertz a good deal for potential car-buyers?

Sean Tucker, senior editor at Kelley Blue Book, looked through the used Tesla listings Hertz already has posted and he said he has “mixed feelings.”

“These are surprisingly reasonable prices for a used EV,” he told MarketWatch.

Listings on the Hertz site on Thursday ranged from a 2021 Tesla Model 3 Standard Range Plus Sedan with 31,647 miles for $20,125, to a 2022 Tesla Model Y Long Range SUV with 92,789 miles for $40,886.

In many cases, the cars Hertz is selling already have 50,000 to 60,000 miles on them, even in vehicles about a year old. That’s a lot of miles to pack in over a short period of time, Tucker noted.

“Hertz Car Sales offers competitive pricing at a non-negotiated price,” with vehicles available online and at brick-and-mortar sales locations, a spokesperson told MarketWatch.

Hertz is selling multiple EV makes and models, and there are more coming in 2024, the spokesperson noted. In the company’s “Rent2Buy program,” potential buyers can rent a vehicle for up to three days or a take a free two-hour test drive. Rental charges are dropped with a purchase, the spokesperson said.

What to consider when buying a used EV

When considering whether to buy a used EV, mileage isn’t necessarily the most important factor to consider, said Jeremy Robb, senior director of economic and industry insights at Cox Automotive. More important is the quality of the battery and the tires, which can wear out more quickly than in gas-powered cars.

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