- Hertz is currently selling dozens of Teslas and Chevy Bolts with deep discounts.
- Some higher mileage Model 3 examples have asking prices of under $20,000.
- Several Chevrolet Bolts are available under $14,000 as well.
Hertz wants to shift some of its all-electric inventory and, after a $1.3 billion loss in Q3 and a $1 billion impairment charge due to the lost value in its EV fleet, it can’t do it soon enough. However, Hertz’s missteps in the EV market could be a win for you (or a friend), as the rental car giant is clearing out older EVs for under $20,000—and in many cases, for less than $15,000.
More: Hertz In A Hole After EV Gamble, Will Sell 30,000 EVs By Year’s End
On the surface, these discounts might seem tempting, but as always, the devil’s in the details. As of this writing, Hertz has over a dozen Teslas on sale for under $30,000. The vast majority sit below $25,000, and four are beneath $20,000. The deals appear to be in that middle ground though.
High Mileage, High Risk
For instance, among the cars under $20k, all have over 120,000 miles on the odometer. That places them well outside Tesla’s 8-year/100,000-mile limited warranty for the battery and drive unit (for RWD models). What might look like a bargain at first glance could quickly spiral into an expensive nightmare if the battery decides to call it quits. Battery replacements for EVs and PHEVs are notoriously expensive. Proceed with extra caution, as we’ve heard that battery replacements for the RWD Model 3 typically start at $13,000.
A Question of Value
The sweet spot in Hertz’s clearance fleet seems to be Teslas priced between $20,000 and $25,000. Many of those have around 60,000 miles and some have as little as 27,583 miles. These cars should still fall within Tesla’s battery warranty, but you’ll want to verify specifics before signing on the dotted line. In addition, Hertz sells them with a 12-month, 12,000-mile powertrain warranty. Elon Musk might think that a $25,000 Tesla is “pointless” but we see some value in these used examples.
Why A New Tesla Might Be Smarter
Above that point, however, and especially when you hit the $30,000 price mark, you might be better off just getting a new one if you qualify for all federal and state tax rebates. These incentives vary based on your location, income, and vehicle choice. For instance, in Massachusetts, qualifying buyers can benefit from the $7,500 federal tax credit combined with an additional $3,500 state EV rebate (both subject to income and MSRP limits) for a total of $11,000 in savings.
On top of that, Tesla is currently offering a 0% APR financing deal for up to 60 months with a minimum down payment of 20%—and the $7,500 federal tax credit can be applied upfront, if eligible.
This means you could drive away in a brand-new Tesla Model Y Long Range for $37,000 before taxes and fees, not to mention paying most of it off with zero interest over 60 months. Compare that to Hertz’s offer of a 2022 Tesla Model Y Long Range with 46,883 miles priced at $29,364 before taxes and fees, and the decision becomes a bit more nuanced. Depending on your circumstances, the price gap may justify going for new over used—or at least give you pause before committing to Hertz’s clearance inventory.
Budget EVs Galore
Should one not love the idea of picking up a used Tesla, Hertz has a few other inexpensive EVs on offer. There are so many Chevrolet Bolts that it’s impossible to pick just one out of the crowd of over 100. The good news is that just about any trim or options are available. Most of them are on offer for under $15,000 too.
That’s not all though. For those with a taste for something a little more upscale, Hertz also has some Volvo C40 Recharge models for under $30,000 with under 20,000 miles in most cases, and several Mercedes-Benz EQBs with under 15,000 miles for less than $30,000 too.
Don’t feel convinced yet? For the true bargain hunters, how about two Hyundai Kona Electric crossovers priced under $13,000 right now? Sure, they have over 100,000 miles each but they could also qualify for tax credits too. The deals are out there right now for interested parties.
Due Diligence Required
The bottom line? Hertz’s loss could be your gain, but it’s crucial to tread carefully and do your homework, particularly when it comes to battery warranties. These cars might save you money upfront, but as with any used vehicle—especially an EV—future maintenance and battery life should weigh heavily in your decision. Deals like these can feel like a steal, but only if you know exactly what you’re buying into.
Additional reporting by John Halas
